ResMed (NYSE:RMD) Downgraded to Hold Rating by Citigroup

Key Points

• Citigroup downgraded ResMed from a “strong-buy” to a “hold” rating, adding to a mixed but still generally positive analyst picture for the stock.
• ResMed shares were down 2.7%, opening at $198.38, while the stock continued to trade below its 200-day moving average of $227.81.
• The company recently beat quarterly earnings expectations, reporting EPS of $2.86 versus $2.79 expected and revenue of $1.43 billion, up 10.8% year over year.

ResMed (NYSE:RMD - Get Free Report) was downgraded by equities research analysts at Citigroup from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Sunday,Zacks.com reports.

Several other research firms have also recently issued reports on RMD. The Goldman Sachs Group reaffirmed a "buy" rating on shares of ResMed in a research report on Wednesday, July 1st. Robert W. Baird set a $225.00 target price on ResMed in a report on Friday, May 1st. Weiss Ratings cut ResMed from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, May 22nd. Wall Street Zen downgraded ResMed from a "buy" rating to a "hold" rating in a report on Saturday, March 14th. Finally, Morgan Stanley reaffirmed an "equal weight" rating and set a $230.00 price objective (down from $286.00) on shares of ResMed in a research report on Wednesday, June 17th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $260.17.

ResMed Trading Down 2.7%

Shares of NYSE RMD opened at $198.38 on Friday. The firm's 50 day moving average price is $200.16 and its 200-day moving average price is $227.81. The company has a market cap of $28.78 billion, a PE ratio of 19.13, a P/E/G ratio of 1.22 and a beta of 0.78. ResMed has a 52-week low of $180.26 and a 52-week high of $293.81. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.33 and a current ratio of 3.01.

ResMed (NYSE:RMD - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The medical equipment provider reported $2.86 EPS for the quarter, beating analysts' consensus estimates of $2.79 by $0.07. ResMed had a net margin of 27.44% and a return on equity of 25.35%. The firm had revenue of $1.43 billion for the quarter, compared to analysts' expectations of $1.42 billion. During the same quarter in the prior year, the company posted $2.37 earnings per share. The business's revenue for the quarter was up 10.8% on a year-over-year basis. On average, equities research analysts expect that ResMed will post 11.13 EPS for the current fiscal year.

Insider Activity

In other news, CEO Michael J. Farrell sold 4,991 shares of ResMed stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $218.55, for a total value of $1,090,783.05. Following the sale, the chief executive officer directly owned 466,223 shares of the company's stock, valued at approximately $101,893,036.65. The trade was a 1.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,973 shares of company stock valued at $3,096,067 over the last quarter. Insiders own 0.65% of the company's stock.

Hedge Funds Weigh In On ResMed

Several institutional investors have recently added to or reduced their stakes in the company. International Assets Investment Management LLC bought a new position in shares of ResMed during the 4th quarter valued at approximately $25,000. ORG Partners LLC grew its holdings in shares of ResMed by 181.6% in the fourth quarter. ORG Partners LLC now owns 107 shares of the medical equipment provider's stock valued at $26,000 after purchasing an additional 69 shares in the last quarter. Imprint Wealth LLC bought a new stake in ResMed in the third quarter worth $26,000. WFA of San Diego LLC bought a new stake in ResMed in the second quarter worth $26,000. Finally, Sunbelt Securities Inc. purchased a new stake in ResMed during the third quarter valued at $31,000. Hedge funds and other institutional investors own 54.98% of the company's stock.

About ResMed

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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