ResMed (NYSE:RMD) Upgraded to Hold at Rothschild & Co Redburn

Key Points

• Rothschild & Co Redburn upgraded ResMed to “Hold”, while the broader analyst consensus remains “Hold,” with seven Buy ratings and ten Hold ratings and an average price target of $239.38.
• ResMed’s latest quarter exceeded expectations, reporting $2.95 in EPS versus $2.89 forecast and $1.46 billion in revenue, up 8.6% year over year.
• Shares opened at $230.84, while recent insider activity showed directors and the CEO selling stock under pre-arranged Rule 10b5-1 plans; insiders sold $4.9 million worth of shares over the past 90 days.

ResMed (NYSE:RMD - Get Free Report) was upgraded by equities research analysts at Rothschild & Co Redburn to a "hold" rating in a research note issued to investors on Wednesday,Zacks.com reports.

A number of other equities analysts also recently issued reports on RMD. The Goldman Sachs Group reissued a "buy" rating on shares of ResMed in a research note on Wednesday, July 1st. UBS Group restated a "buy" rating and issued a $300.00 price target on shares of ResMed in a research note on Tuesday, July 21st. Royal Bank Of Canada upped their price objective on ResMed from $234.00 to $244.00 and gave the stock a "sector perform" rating in a report on Friday, August 7th. KeyCorp cut their price objective on ResMed from $260.00 to $255.00 and set an "overweight" rating for the company in a research report on Friday, August 7th. Finally, Wells Fargo & Company reduced their target price on ResMed from $225.00 to $215.00 and set an "equal weight" rating for the company in a report on Friday, August 7th. Seven equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat, ResMed currently has a consensus rating of "Hold" and an average target price of $239.38.

ResMed Stock Performance

Shares of RMD stock opened at $230.84 on Wednesday. The stock's 50-day moving average price is $205.75 and its 200 day moving average price is $220.19. ResMed has a 52-week low of $180.26 and a 52-week high of $293.81. The stock has a market capitalization of $33.30 billion, a PE ratio of 22.13, a price-to-earnings-growth ratio of 1.38 and a beta of 0.76. The company has a quick ratio of 2.42, a current ratio of 3.10 and a debt-to-equity ratio of 0.06.

ResMed (NYSE:RMD - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 EPS for the quarter, topping the consensus estimate of $2.89 by $0.06. ResMed had a return on equity of 25.58% and a net margin of 26.94%.The business had revenue of $1.46 billion during the quarter, compared to analysts' expectations of $1.46 billion. During the same quarter in the prior year, the business earned $2.55 earnings per share. The company's quarterly revenue was up 8.6% compared to the same quarter last year. As a group, equities research analysts forecast that ResMed will post 12.03 EPS for the current year.

Insider Buying and Selling

In related news, Director Peter C. Farrell sold 8,000 shares of ResMed stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $225.00, for a total transaction of $1,800,000.00. Following the completion of the transaction, the director directly owned 52,773 shares of the company's stock, valued at approximately $11,873,925. The trade was a 13.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael J. Farrell sold 4,991 shares of the company's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $205.69, for a total value of $1,026,598.79. Following the completion of the sale, the chief executive officer directly owned 466,256 shares in the company, valued at $95,904,196.64. This trade represents a 1.06% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 22,973 shares of company stock worth $4,885,436. Insiders own 0.65% of the company's stock.

Hedge Funds Weigh In On ResMed

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Imprint Wealth LLC acquired a new stake in shares of ResMed in the third quarter valued at approximately $26,000. WFA of San Diego LLC acquired a new position in shares of ResMed during the 2nd quarter worth approximately $26,000. International Assets Investment Management LLC purchased a new stake in ResMed in the 4th quarter valued at approximately $25,000. Sunbelt Securities Inc. purchased a new stake in ResMed in the 3rd quarter valued at approximately $31,000. Finally, Bell Investment Advisors Inc acquired a new stake in ResMed during the 2nd quarter valued at $26,000. Institutional investors and hedge funds 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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