According to Zacks, “ResMed is suffering from challenges like fluctuating foreign currency, competitive bidding and reimbursement issues continue to plague the stock. Despite gaining an additional tax benefit of $11.2 million in the last reported fourth quarter, the company could not enjoy this benefit as it got offset by a large tax expense ResMed incurred, in relation to an increase in the company’s foreign cash repatriation to the U.S. On a brighter note in the top-line front during the last reported quarter, the company posted robust double-digit growth in the U.S., with software-as-a-service revenue from the recently acquired Brightree as a major contributor. The company’s strong cash balance and the recently announced hike in dividend payment further boost confidence in the stock.”
RMD has been the topic of several other reports. Needham & Company LLC reissued a sell rating on shares of ResMed in a report on Monday, September 12th. Barclays PLC restated an underweight rating and issued a $55.00 price target on shares of ResMed in a research note on Friday, August 26th. Jefferies Group cut ResMed from a hold rating to an underperform rating and decreased their price target for the stock from $60.00 to $58.00 in a research note on Tuesday, August 23rd. JPMorgan Chase & Co. cut ResMed from an overweight rating to a neutral rating in a research note on Monday, September 19th. Finally, Northland Securities set a $50.00 price target on ResMed and gave the stock a sell rating in a research note on Monday, August 29th. Five research analysts have rated the stock with a sell rating, six have given a hold rating and three have given a buy rating to the stock. The stock currently has a consensus rating of Hold and a consensus target price of C$59.30.
ResMed (NYSE:RMD) opened at 64.79 on Wednesday. The stock’s 50 day moving average price is $66.54 and its 200 day moving average price is $62.23. ResMed has a 1-year low of $50.77 and a 1-year high of $70.90. The company has a market cap of $9.12 billion, a P/E ratio of 26.02 and a beta of 0.68.
ResMed (NYSE:RMD) last released its earnings results on Thursday, July 28th. The company reported $0.74 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.74. ResMed had a return on equity of 23.89% and a net margin of 18.63%. The business had revenue of $518.60 million for the quarter, compared to the consensus estimate of $512.37 million. During the same period in the previous year, the company posted $0.68 earnings per share. The company’s revenue for the quarter was up 14.5% compared to the same quarter last year. On average, equities analysts anticipate that ResMed will post $2.88 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which was paid on Thursday, September 22nd. Shareholders of record on Thursday, August 18th were given a $0.33 dividend. This is a boost from ResMed’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend was Tuesday, August 16th. This represents a $1.32 dividend on an annualized basis and a yield of 2.04%. ResMed’s dividend payout ratio is presently 54.32%.
In other ResMed news, CEO Michael J. Farrell sold 5,975 shares of the company’s stock in a transaction dated Monday, August 15th. The stock was sold at an average price of C$70.41, for a total value of C$420,699.75. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Brett Sandercock sold 35,000 shares of the company’s stock in a transaction dated Thursday, August 11th. The stock was sold at an average price of C$70.50, for a total value of C$2,467,500.00. The disclosure for this sale can be found here. 1.97% of the stock is owned by company insiders.
A number of hedge funds have recently modified their holdings of the company. Tobam boosted its stake in shares of ResMed by 10.7% in the first quarter. Tobam now owns 1,185,280 shares of the company’s stock worth $68,533,000 after buying an additional 114,759 shares during the last quarter. BlackRock Institutional Trust Company N.A. raised its position in ResMed by 3.6% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 4,270,372 shares of the company’s stock worth $246,913,000 after buying an additional 149,999 shares during the period. BlackRock Group LTD raised its position in ResMed by 3.8% in the first quarter. BlackRock Group LTD now owns 520,284 shares of the company’s stock worth $30,082,000 after buying an additional 19,230 shares during the period. BlackRock Inc. raised its position in ResMed by 24.4% in the first quarter. BlackRock Inc. now owns 188,207 shares of the company’s stock worth $10,882,000 after buying an additional 36,971 shares during the period. Finally, Teachers Advisors Inc. raised its position in ResMed by 32.0% in the first quarter. Teachers Advisors Inc. now owns 280,218 shares of the company’s stock worth $16,202,000 after buying an additional 67,854 shares during the period. Institutional investors and hedge funds own 61.07% of the company’s stock.
ResMed Inc is engaged in the development, manufacturing, distribution and marketing of medical products for the diagnosis, treatment and management of respiratory disorders, with a focus on sleep-disordered breathing (SDB). The Company develops various products for SDB and other respiratory disorders, including airflow generators, diagnostic products, mask systems, headgear and other accessories.
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