Wolfe Research Reiterates “Underperform” Rating for ResMed (NYSE:RMD)

by · The Markets Daily

Wolfe Research reaffirmed their underperform rating on shares of ResMed (NYSE:RMD – Free Report) in a report released on Wednesday morning, Marketbeat.com reports. Wolfe Research currently has a $180.00 target price on the medical equipment provider’s stock.

RMD has been the subject of several other reports. Needham & Company LLC restated a hold rating on shares of ResMed in a report on Wednesday. Citigroup cut ResMed from a buy rating to a neutral rating in a research note on Monday, June 24th. StockNews.com cut ResMed from a buy rating to a hold rating in a research note on Friday, August 30th. KeyCorp raised their price objective on ResMed from $238.00 to $251.00 and gave the company an overweight rating in a research report on Friday, August 2nd. Finally, Royal Bank of Canada upped their target price on shares of ResMed from $204.00 to $206.00 and gave the stock a sector perform rating in a research report on Friday, August 2nd. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and four have assigned a buy rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of Hold and a consensus target price of $199.70.

Check Out Our Latest Report on RMD

ResMed Price Performance

Shares of ResMed stock opened at $244.90 on Wednesday. The business has a 50 day moving average of $226.91 and a 200 day moving average of $209.22. ResMed has a 52 week low of $132.24 and a 52 week high of $255.18. The company has a market cap of $35.98 billion, a PE ratio of 37.62, a P/E/G ratio of 2.50 and a beta of 0.69. The company has a quick ratio of 1.69, a current ratio of 2.59 and a debt-to-equity ratio of 0.14.

ResMed (NYSE:RMD – Get Free Report) last issued its quarterly earnings data on Thursday, August 1st. The medical equipment provider reported $2.08 EPS for the quarter, topping the consensus estimate of $2.03 by $0.05. The business had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.22 billion. ResMed had a net margin of 21.79% and a return on equity of 25.00%. The company’s revenue for the quarter was up 6.9% on a year-over-year basis. During the same period in the prior year, the business earned $1.60 EPS. As a group, equities research analysts forecast that ResMed will post 8.92 earnings per share for the current year.

ResMed Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 19th. Investors of record on Thursday, August 15th were paid a $0.53 dividend. This is a boost from ResMed’s previous quarterly dividend of $0.48. The ex-dividend date was Thursday, August 15th. This represents a $2.12 dividend on an annualized basis and a yield of 0.87%. ResMed’s payout ratio is presently 32.57%.

Insider Buying and Selling at ResMed

In other news, insider Justin Leong sold 48,000 shares of the company’s stock in a transaction that occurred on Monday, August 5th. The shares were sold at an average price of $217.07, for a total value of $10,419,360.00. Following the transaction, the insider now owns 18,741 shares in the company, valued at $4,068,108.87. The sale was disclosed in a legal filing with the SEC, which is available at this link. In related news, insider Kaushik Ghoshal sold 5,000 shares of the stock in a transaction on Thursday, September 12th. The stock was sold at an average price of $252.56, for a total transaction of $1,262,800.00. Following the sale, the insider now directly owns 21,788 shares of the company’s stock, valued at $5,502,777.28. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, insider Justin Leong sold 48,000 shares of ResMed stock in a transaction dated Monday, August 5th. The stock was sold at an average price of $217.07, for a total value of $10,419,360.00. Following the completion of the sale, the insider now owns 18,741 shares of the company’s stock, valued at $4,068,108.87. The disclosure for this sale can be found here. In the last ninety days, insiders sold 102,931 shares of company stock worth $22,644,807. 1.21% of the stock is owned by corporate insiders.

Institutional Trading of ResMed

A number of institutional investors have recently made changes to their positions in RMD. BOK Financial Private Wealth Inc. purchased a new stake in ResMed in the first quarter worth approximately $35,000. OFI Invest Asset Management bought a new stake in shares of ResMed in the second quarter worth $32,000. Versant Capital Management Inc increased its position in ResMed by 196.7% during the second quarter. Versant Capital Management Inc now owns 181 shares of the medical equipment provider’s stock valued at $35,000 after acquiring an additional 120 shares during the last quarter. Financial Connections Group Inc. bought a new position in ResMed in the second quarter valued at about $37,000. Finally, Riverview Trust Co purchased a new position in ResMed in the first quarter worth about $42,000. Hedge funds and other institutional investors own 54.98% of the company’s stock.

About ResMed

(Get Free Report)

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. It 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 technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes.

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