ResMed (NYSE:RMD) Stock Rating Cut to Hold at Canaccord Genuity Group

Key Points

• Canaccord Genuity downgraded ResMed from “Buy” to “Hold,” bringing the overall analyst consensus to “Hold” with an average price target of $253.69.
• ResMed reported better-than-expected quarterly results, with EPS of $2.91 versus the $2.67 estimate and revenue of $1.41 billion, up 5.9% year over year.
• Shares opened at $230.76, while insiders sold 24,343 shares worth approximately $5.4 million during the latest quarter; institutional investors own about 55% of the company.

ResMed (NYSE:RMD - Get Free Report) was downgraded by Canaccord Genuity Group from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Monday, Briefing.com reports.

A number of other research analysts have also recently commented on the company. Weiss Ratings upgraded ResMed from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, October 8th. Needham & Company LLC reissued a "hold" rating on shares of ResMed in a research note on Friday. UBS Group restated a "buy" rating and issued a $300.00 target price on shares of ResMed in a research report on Tuesday, July 21st. Citigroup upped their price target on ResMed from $240.00 to $270.00 and gave the company a "neutral" rating in a research note on Friday. Finally, Robert W. Baird set a $213.00 price target on ResMed in a research note on Friday, August 7th. Seven equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat.com, ResMed presently has a consensus rating of "Hold" and an average target price of $253.69.

ResMed Stock Up 0.4%

Shares of NYSE RMD opened at $230.76 on Monday. The firm has a market cap of $32.45 billion, a price-to-earnings ratio of 21.02, a price-to-earnings-growth ratio of 1.41 and a beta of 0.77. The company's 50-day simple moving average is $231.87 and its 200-day simple moving average is $225.43. The company has a quick ratio of 1.88, a current ratio of 2.65 and a debt-to-equity ratio of 0.04. ResMed has a 52-week low of $180.26 and a 52-week high of $277.67.

ResMed (NYSE:RMD - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The medical equipment provider reported $2.91 earnings per share for the quarter, topping the consensus estimate of $2.67 by $0.24. ResMed had a net margin of 27.79% and a return on equity of 26.42%. The firm had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.39 billion. During the same period last year, the firm posted $2.55 earnings per share. The company's revenue for the quarter was up 5.9% on a year-over-year basis. Equities analysts predict that ResMed will post 12.12 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Michael J. Farrell sold 4,991 shares of the business's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $205.69, for a total transaction of $1,026,598.79. Following the transaction, the chief executive officer directly owned 466,256 shares in the company, valued at $95,904,196.64. The trade was a 1.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Michael J. Rider sold 400 shares of the stock in a transaction on Friday, October 23rd. The stock was sold at an average price of $255.00, for a total value of $102,000.00. Following the completion of the transaction, the general counsel owned 12,318 shares of the company's stock, valued at $3,141,090. The trade was a 3.15% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 24,343 shares of company stock worth $5,396,098 in the last quarter. 0.58% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Bell Investment Advisors Inc acquired a new stake in shares of ResMed during the 2nd quarter worth about $26,000. Trust Co. of Vermont purchased a new stake in shares of ResMed during the second quarter worth about $39,000. Kelleher Financial Advisors acquired a new position in shares of ResMed in the second quarter valued at approximately $47,000. Provenance Wealth Advisors LLC acquired a new position in shares of ResMed in the third quarter valued at approximately $55,000. Finally, Harbor Investment Advisory LLC raised its position in shares of ResMed by 82.6% in the second quarter. Harbor Investment Advisory LLC now owns 409 shares of the medical equipment provider's stock valued at $80,000 after buying an additional 185 shares during the last quarter. 54.98% of the stock is currently owned by institutional investors and hedge funds.

ResMed Company Profile

ResMed Inc is a medical equipment and software company that develops solutions for sleep-disordered breathing, respiratory conditions and other chronic diseases. The company is best known for its positive airway pressure (PAP) devices used to treat obstructive sleep apnea, along with masks, accessories and related patient support services.

ResMed also provides cloud-connected health technology, including remote-monitoring platforms and software used by healthcare providers, medical equipment suppliers and care organizations.

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