ResMed (NYSE:RMD) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• ResMed has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, with varying opinions from other firms, including a boost in target prices from multiple analysts.
• The company reported $2.55 EPS for the last quarter, exceeding expectations and showing a 10.2% revenue growth compared to the previous year.
• Insiders have sold a total of 19,054 shares of ResMed stock recently, indicating a possible shift in sentiment among company leadership regarding its shares.

Wall Street Zen cut shares of ResMed (NYSE:RMD - Free Report) from a buy rating to a hold rating in a report released on Sunday.

A number of other equities research analysts have also recently issued reports on the stock. UBS Group upped their target price on shares of ResMed from $285.00 to $325.00 and gave the company a "buy" rating in a report on Friday, August 1st. Royal Bank Of Canada increased their price target on shares of ResMed from $294.00 to $300.00 and gave the company an "outperform" rating in a report on Friday, August 1st. JPMorgan Chase & Co. increased their price target on shares of ResMed from $286.00 to $290.00 and gave the company an "overweight" rating in a report on Thursday, April 24th. Mizuho increased their price target on shares of ResMed from $270.00 to $290.00 and gave the company an "outperform" rating in a report on Friday, August 1st. Finally, KeyCorp increased their price target on shares of ResMed from $274.00 to $298.00 and gave the company an "overweight" rating in a report on Friday, August 1st. One analyst has rated the stock with a sell rating, four have assigned a hold rating, ten have issued a buy rating and two have assigned a strong buy rating to the company's stock. According to data from MarketBeat, ResMed has an average rating of "Moderate Buy" and an average price target of $274.83.

ResMed Stock Down 0.3%

NYSE RMD traded down $0.85 on Friday, reaching $283.47. The company had a trading volume of 1,436,162 shares, compared to its average volume of 1,004,907. The firm has a market capitalization of $41.57 billion, a price-to-earnings ratio of 29.81, a price-to-earnings-growth ratio of 1.91 and a beta of 0.77. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.53 and a current ratio of 3.44. ResMed has a 1-year low of $199.92 and a 1-year high of $293.08. The company's fifty day moving average is $262.06 and its 200-day moving average is $242.29.

ResMed (NYSE:RMD - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The medical equipment provider reported $2.55 EPS for the quarter, topping analysts' consensus estimates of $2.47 by $0.08. ResMed had a net margin of 27.22% and a return on equity of 25.62%. The company had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.33 billion. During the same period in the prior year, the business posted $2.08 EPS. The company's quarterly revenue was up 10.2% on a year-over-year basis. On average, research analysts forecast that ResMed will post 9.47 earnings per share for the current fiscal year.

ResMed Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Thursday, August 14th will be issued a dividend of $0.60 per share. This is a boost from ResMed's previous quarterly dividend of $0.53. This represents a $2.40 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Wednesday, August 13th. ResMed's payout ratio is 22.29%.

Insider Transactions at ResMed

In related news, CEO Michael J. Farrell sold 8,009 shares of the stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $279.48, for a total transaction of $2,238,355.32. Following the sale, the chief executive officer owned 455,503 shares in the company, valued at approximately $127,303,978.44. This trade represents a 1.73% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Peter C. Farrell sold 945 shares of the stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $255.49, for a total transaction of $241,438.05. Following the sale, the director owned 68,273 shares in the company, valued at $17,443,068.77. This represents a 1.37% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 27,063 shares of company stock valued at $7,058,835. 0.71% of the stock is currently owned by company insiders.

Institutional Trading of ResMed

A number of hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its position in ResMed by 1.4% in the second quarter. Vanguard Group Inc. now owns 18,746,925 shares of the medical equipment provider's stock valued at $4,836,707,000 after buying an additional 253,223 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of ResMed by 2.4% during the second quarter. Geode Capital Management LLC now owns 4,215,145 shares of the medical equipment provider's stock worth $1,083,409,000 after purchasing an additional 98,717 shares during the period. Northern Trust Corp lifted its holdings in shares of ResMed by 2.5% during the first quarter. Northern Trust Corp now owns 1,744,541 shares of the medical equipment provider's stock worth $390,516,000 after purchasing an additional 41,951 shares during the period. Charles Schwab Investment Management Inc. lifted its holdings in shares of ResMed by 2.3% during the second quarter. Charles Schwab Investment Management Inc. now owns 1,021,001 shares of the medical equipment provider's stock worth $263,418,000 after purchasing an additional 22,873 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of ResMed by 2.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 977,401 shares of the medical equipment provider's stock worth $218,791,000 after purchasing an additional 22,789 shares during the period. Institutional investors and hedge funds own 54.98% of the company's stock.

ResMed Company Profile

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights.