Citigroup Issues Pessimistic Forecast for ResMed (NYSE:RMD) Stock Price

Key Points

• Citigroup trimmed its price target on ResMed to $340 (from $345) but kept a "buy" rating, a target that implies about 48.49% upside from the current share price.
• ResMed beat quarterly estimates with $2.81 EPS vs. $2.68 expected and $1.42B in revenue vs. $1.40B expected, with revenue up ~11% year-over-year and a net margin of 27.5%.
• Insider selling was notable: CEO Michael J. Farrell sold 4,991 shares at about $273.78 and a director sold 2,000 shares at $225, with insiders selling 16,032 shares (~$4.1M) in the last quarter (insiders own 0.65%).

ResMed (NYSE:RMD - Get Free Report) had its price objective cut by research analysts at Citigroup from $345.00 to $340.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage presently has a "buy" rating on the medical equipment provider's stock. Citigroup's price target indicates a potential upside of 48.49% from the stock's current price.

A number of other analysts have also recently commented on RMD. UBS Group reaffirmed a "buy" rating and set a $345.00 price target on shares of ResMed in a research report on Friday, December 12th. Piper Sandler upped their price target on shares of ResMed from $270.00 to $275.00 and gave the company a "neutral" rating in a research report on Friday, January 30th. Royal Bank Of Canada upped their price target on shares of ResMed from $311.00 to $314.00 and gave the company an "outperform" rating in a research report on Friday, January 30th. Robert W. Baird set a $281.00 price target on shares of ResMed in a research report on Friday, January 30th. Finally, KeyCorp reaffirmed an "overweight" rating and set a $302.00 price target on shares of ResMed in a research report on Friday, January 30th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $298.82.

ResMed Trading Down 0.7%

Shares of ResMed stock traded down $1.72 during trading on Thursday, hitting $228.98. The company's stock had a trading volume of 369,867 shares, compared to its average volume of 1,071,565. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.06 and a quick ratio of 2.32. ResMed has a 52 week low of $202.00 and a 52 week high of $293.81. The stock has a market cap of $33.36 billion, a price-to-earnings ratio of 22.61, a price-to-earnings-growth ratio of 1.49 and a beta of 0.93. The stock has a 50-day moving average price of $244.76 and a two-hundred day moving average price of $252.32.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings results on Friday, January 30th. The medical equipment provider reported $2.81 EPS for the quarter, beating analysts' consensus estimates of $2.68 by $0.13. The business had revenue of $1.42 billion for the quarter, compared to analysts' expectations of $1.40 billion. ResMed had a net margin of 27.53% and a return on equity of 25.20%. The business's quarterly revenue was up 11.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.43 earnings per share. Equities research analysts anticipate that ResMed will post 9.47 EPS for the current fiscal year.

Insider Activity

In other news, CEO Michael J. Farrell sold 4,991 shares of the company's stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $273.78, for a total transaction of $1,366,435.98. Following the transaction, the chief executive officer owned 466,223 shares in the company, valued at approximately $127,642,532.94. This represents a 1.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Peter C. Farrell sold 2,000 shares of the company's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $225.00, for a total transaction of $450,000.00. The SEC filing for this sale provides additional information. Insiders have sold 16,032 shares of company stock worth $4,105,387 in the last quarter. Company insiders own 0.65% of the company's stock.

Institutional Investors Weigh In On ResMed

Institutional investors and hedge funds have recently made changes to their positions in the business. SJS Investment Consulting Inc. raised its holdings in shares of ResMed by 1,433.3% in the 3rd quarter. SJS Investment Consulting Inc. now owns 92 shares of the medical equipment provider's stock worth $25,000 after acquiring an additional 86 shares during the last quarter. International Assets Investment Management LLC acquired a new stake in shares of ResMed in the 4th quarter worth about $25,000. ORG Partners LLC raised its holdings in shares of ResMed by 181.6% in the 4th quarter. ORG Partners LLC now owns 107 shares of the medical equipment provider's stock worth $26,000 after acquiring an additional 69 shares during the last quarter. Imprint Wealth LLC acquired a new stake in shares of ResMed in the 3rd quarter worth about $26,000. Finally, WFA of San Diego LLC acquired a new stake in shares of ResMed in the 2nd quarter worth about $26,000. Institutional investors and hedge funds own 54.98% of the company's stock.

ResMed Company Profile

ResMed NYSE: RMD is a global medical device and cloud-connectivity company focused on improving outcomes for people with sleep-disordered breathing and chronic respiratory conditions. Founded in 1989, the company is headquartered in San Diego, California, and develops, manufactures and distributes a range of devices and software used by patients, clinicians and providers worldwide.

ResMed's product portfolio centers on noninvasive ventilation and sleep therapy equipment, including continuous positive airway pressure (CPAP) and bilevel devices, masks and related accessories for the treatment of obstructive sleep apnea and other respiratory disorders.

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