ResMed (NYSE:RMD) Lowered to “Hold” Rating by Citigroup

Citigroup lowered shares of ResMed (NYSE:RMD) from a strong-buy rating to a hold rating in a research report sent to investors on Sunday,Zacks.com reports.

Other equities analysts also recently issued research reports about the company. Wells Fargo & Company decreased their price objective on ResMed from $227.00 to $225.00 and set an “equal weight” rating for the company in a report on Wednesday, July 8th. Morgan Stanley reaffirmed an “equal weight” rating and issued a $230.00 target price (down from $286.00) on shares of ResMed in a research report on Wednesday, June 17th. The Goldman Sachs Group reiterated a “buy” rating on shares of ResMed in a research note on Wednesday, July 1st. Robert W. Baird set a $225.00 price objective on shares of ResMed in a research note on Friday, May 1st. Finally, KeyCorp cut their price objective on shares of ResMed from $290.00 to $266.00 and set an “overweight” rating on the stock in a report on Monday, June 22nd. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and eight have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, ResMed presently has an average rating of “Moderate Buy” and a consensus target price of $260.17.

ResMed Price Performance

RMD opened at $198.38 on Friday. 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 has a 52-week low of $180.26 and a 52-week high of $293.81. The stock has a market capitalization of $28.78 billion, a PE ratio of 19.13, a price-to-earnings-growth ratio of 1.22 and a beta of 0.78. The stock’s 50 day moving average price is $200.16 and its 200-day moving average price is $227.81.

ResMed (NYSE:RMD) last posted its earnings results on Thursday, April 30th. The medical equipment provider reported $2.86 EPS for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts’ expectations of $1.42 billion. During the same period last year, the company posted $2.37 EPS. The company’s quarterly revenue was up 10.8% compared to the same quarter last year. On average, equities research analysts predict that ResMed will post 11.13 EPS for the current year.

ResMed Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Thursday, May 14th were given a $0.60 dividend. The ex-dividend date of this dividend was Thursday, May 14th. This represents a $2.40 annualized dividend and a yield of 1.2%. ResMed’s dividend payout ratio is 23.14%.

Insider Buying and Selling

In other ResMed news, CEO Michael J. Farrell sold 4,991 shares of ResMed stock in a transaction on 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 completion of the sale, the chief executive officer owned 466,223 shares of the company’s stock, valued at approximately $101,893,036.65. This trade represents a 1.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 14,973 shares of company stock worth $3,096,067. Company insiders own 0.65% of the company’s stock.

Institutional Trading of ResMed

A number of institutional investors have recently made changes to their positions in the stock. State Street Corp grew its holdings in shares of ResMed by 1.2% in the fourth quarter. State Street Corp now owns 6,625,408 shares of the medical equipment provider’s stock worth $1,595,862,000 after acquiring an additional 76,244 shares during the period. Bank of New York Mellon Corp boosted its position in ResMed by 0.7% in the first quarter. Bank of New York Mellon Corp now owns 4,925,386 shares of the medical equipment provider’s stock worth $1,105,651,000 after purchasing an additional 34,732 shares during the last quarter. Geode Capital Management LLC boosted its position in ResMed by 1.2% in the fourth quarter. Geode Capital Management LLC now owns 4,302,906 shares of the medical equipment provider’s stock worth $1,032,877,000 after purchasing an additional 51,218 shares during the last quarter. Morgan Stanley grew its stake in shares of ResMed by 25.0% during the 4th quarter. Morgan Stanley now owns 2,891,697 shares of the medical equipment provider’s stock valued at $696,523,000 after purchasing an additional 578,559 shares during the period. Finally, Northern Trust Corp increased its position in shares of ResMed by 5.2% during the 4th quarter. Northern Trust Corp now owns 1,785,384 shares of the medical equipment provider’s stock valued at $430,045,000 after purchasing an additional 87,502 shares during the last quarter. Hedge funds and other institutional investors 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.