Citigroup Issues Pessimistic Forecast for ResMed (NYSE:RMD) Stock Price

ResMed (NYSE:RMD) had its price objective reduced by research analysts at Citigroup to $270.00 in a research report issued on Monday,Benzinga reports. The firm currently has a “buy” rating on the medical equipment provider’s stock. Citigroup’s price target suggests a potential upside of 40.41% from the company’s previous close.

RMD has been the topic of a number of other research reports. Wall Street Zen cut shares of ResMed from a “buy” rating to a “hold” rating in a research report on Saturday, March 14th. JPMorgan Chase & Co. began coverage on ResMed in a research report on Wednesday, April 15th. They set an “overweight” rating for the company. Royal Bank Of Canada boosted their price objective on ResMed from $314.00 to $321.00 and gave the company an “outperform” rating in a report on Friday, May 1st. Evercore set a $255.00 target price on ResMed and gave the stock an “outperform” rating in a research note on Monday, April 13th. Finally, Robert W. Baird set a $225.00 target price on ResMed in a report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $279.82.

ResMed Price Performance

Shares of ResMed stock traded down $2.49 on Monday, hitting $192.29. 675,953 shares of the company were exchanged, compared to its average volume of 1,207,453. The company has a quick ratio of 2.33, a current ratio of 3.01 and a debt-to-equity ratio of 0.06. The company has a 50-day moving average price of $210.32 and a 200 day moving average price of $235.28. The stock has a market capitalization of $27.89 billion, a price-to-earnings ratio of 18.56, a price-to-earnings-growth ratio of 1.24 and a beta of 0.80. ResMed has a 1-year low of $180.26 and a 1-year high of $293.81.

ResMed (NYSE:RMD) last issued its earnings results on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.79 by $0.07. ResMed had a return on equity of 25.35% and a net margin of 27.44%.The company had revenue of $1.43 billion during the quarter, compared to analysts’ expectations of $1.42 billion. During the same period in the prior year, the business earned $2.37 EPS. The firm’s quarterly revenue was up 10.8% on a year-over-year basis. As a group, sell-side analysts predict that ResMed will post 11.13 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Peter C. Farrell sold 2,000 shares of the firm’s stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $225.00, for a total transaction of $450,000.00. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Michael J. Farrell sold 4,991 shares of ResMed stock in a transaction on Monday, June 8th. The shares were sold at an average price of $193.96, for a total transaction of $968,054.36. Following the completion of the transaction, the chief executive officer directly owned 466,256 shares in the company, valued at $90,435,013.76. The trade was a 1.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 16,973 shares of company stock valued at $3,580,754. 0.65% of the stock is owned by corporate insiders.

Institutional Trading of ResMed

A number of hedge funds have recently added to or reduced their stakes in the stock. International Assets Investment Management LLC purchased a new stake in shares of ResMed during the fourth quarter worth approximately $25,000. ORG Partners LLC boosted its stake 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 buying an additional 69 shares in the last quarter. Imprint Wealth LLC purchased 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 ResMed during the second quarter worth $26,000. Finally, Sunbelt Securities Inc. purchased a new position in ResMed in the third quarter worth $31,000. 54.98% of the stock is owned by institutional investors and hedge funds.

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.