ResMed (NYSE:RMD) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Thursday. The firm currently has a $99.00 target price on the medical equipment provider’s stock. Zacks Investment Research‘s target price would indicate a potential upside of 11.57% from the company’s previous close.
According to Zacks, “Over the recent past, ResMed has been observed to achieve strong global revenue growth led by sales from Software-as-a-Service businesses as well as its new mask products and devices. We are encouraged to note that the company is working on product innovation through extensive research and development. The company also recently launched the AirFit N20 Classic nasal mask for positive airway pressure (PAP) treatment in Europe. In the past six months, ResMed has traded above the broader industry. However, challenges like competitive bidding and reimbursement issues continue to plague ResMed. The company also remains exposed to foreign exchange fluctuations. Rising operating expenses and a weak operating margin are other major concerns.”
A number of other research analysts also recently commented on the company. Northland Securities reiterated a “sell” rating and set a $55.00 target price on shares of ResMed in a research report on Friday, October 27th. Needham & Company LLC restated a “sell” rating on shares of ResMed in a research report on Friday, October 27th. JPMorgan Chase & Co. raised their price target on ResMed from $72.00 to $73.00 and gave the stock an “overweight” rating in a research report on Monday, October 30th. BMO Capital Markets raised their price target on ResMed to $82.00 and gave the stock a “market perform” rating in a research report on Tuesday, December 12th. Finally, Barclays raised their price target on ResMed from $65.00 to $68.00 and gave the stock an “underweight” rating in a research report on Monday, September 25th. Four investment analysts have rated the stock with a sell rating, four have given a hold rating and five have issued a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus target price of $70.57.
ResMed (NYSE:RMD) last posted its earnings results on Thursday, October 26th. The medical equipment provider reported $0.66 EPS for the quarter, meeting analysts’ consensus estimates of $0.66. The firm had revenue of $523.66 million during the quarter, compared to the consensus estimate of $506.08 million. ResMed had a return on equity of 21.53% and a net margin of 16.58%. The company’s quarterly revenue was up 12.5% compared to the same quarter last year. During the same period in the prior year, the company earned $0.62 EPS. equities analysts expect that ResMed will post 3.04 EPS for the current fiscal year.
In other ResMed news, CFO Brett Sandercock sold 1,250 shares of the stock in a transaction on Wednesday, November 1st. The stock was sold at an average price of $84.50, for a total value of $105,625.00. Following the sale, the chief financial officer now owns 71,772 shares in the company, valued at $6,064,734. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider James Hollingshead sold 600 shares of the stock in a transaction on Tuesday, January 2nd. The stock was sold at an average price of $84.96, for a total value of $50,976.00. Following the completion of the sale, the insider now owns 62,602 shares in the company, valued at approximately $5,318,665.92. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 158,929 shares of company stock valued at $13,181,009. 1.77% of the stock is owned by corporate insiders.
Hedge funds have recently added to or reduced their stakes in the business. Raymond James Financial Services Advisors Inc. increased its stake in ResMed by 2.9% in the second quarter. Raymond James Financial Services Advisors Inc. now owns 47,056 shares of the medical equipment provider’s stock worth $3,665,000 after purchasing an additional 1,306 shares during the period. Pittenger & Anderson Inc. increased its stake in shares of ResMed by 23.5% during the third quarter. Pittenger & Anderson Inc. now owns 12,765 shares of the medical equipment provider’s stock valued at $982,000 after buying an additional 2,425 shares during the period. American Capital Management Inc. increased its stake in shares of ResMed by 0.5% during the third quarter. American Capital Management Inc. now owns 656,842 shares of the medical equipment provider’s stock valued at $50,551,000 after buying an additional 3,508 shares during the period. Toronto Dominion Bank increased its stake in shares of ResMed by 2,999.2% during the third quarter. Toronto Dominion Bank now owns 53,926 shares of the medical equipment provider’s stock valued at $4,150,000 after buying an additional 52,186 shares during the period. Finally, IFM Investors Pty Ltd purchased a new position in shares of ResMed during the third quarter valued at $341,000. Institutional investors and hedge funds own 61.81% of the company’s stock.
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ResMed Company Profile
ResMed Inc is a holding company. The Company is engaged in the development, manufacturing, distribution and marketing of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders, including sleep disordered breathing (SDB), chronic obstructive pulmonary disease (COPD), neuromuscular disease and other diseases.
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