Stock On Watch: Bearish Gap Down for ResMed Inc. After Worse Fundamentals

Stock On Watch: Bearish Gap Down for ResMed Inc. After Worse Fundamentals

The stock of ResMed Inc. (NYSE:RMD) gapped down by $0.29 today and has $59.18 target or 8.00% below today’s $64.33 share price. The 6 months technical chart setup indicates high risk for the $9.15B company. The gap down was reported on Oct, 4 by Barchart.com. If the $59.18 price target is reached, the company will be worth $732.00M less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. The stock decreased 0.71% or $0.46 during the last trading session, hitting $64.33. About 874,128 shares traded hands. ResMed Inc. (NYSE:RMD) has risen 12.21% since March 1, 2016 and is uptrending. It has underperformed by 0.01% the S&P500.

Analysts await ResMed Inc. (NYSE:RMD) to report earnings on October, 27. They expect $0.63 earnings per share, up 8.62% or $0.05 from last year’s $0.58 per share. RMD’s profit will be $89.61M for 25.53 P/E if the $0.63 EPS becomes a reality. After $0.74 actual earnings per share reported by ResMed Inc. for the previous quarter, Wall Street now forecasts -14.86% negative EPS growth.

ResMed Inc. (NYSE:RMD) Ratings Coverage

Out of 11 analysts covering ResMed Inc (NYSE:RMD), 4 rate it a “Buy”, 3 “Sell”, while 4 “Hold”. This means 36% are positive. ResMed Inc has been the topic of 16 analyst reports since August 3, 2015 according to StockzIntelligence Inc. The company was downgraded on Thursday, December 17 by Needham. The rating was downgraded by Needham on Monday, June 27 to “Underperform”. Barclays Capital downgraded the shares of RMD in a report on Tuesday, January 19 to “Underweight” rating. On Wednesday, April 27 the stock rating was downgraded by Piper Jaffray to “Neutral”. JP Morgan downgraded ResMed Inc. (NYSE:RMD) on Monday, September 19 to “Neutral” rating. As per Thursday, April 28, the company rating was upgraded by Macquarie Research. Morgan Stanley upgraded the shares of RMD in a report on Monday, August 3 to “Overweight” rating. The rating was downgraded by Jefferies to “Underperform” on Tuesday, August 23. As per Friday, January 22, the company rating was upgraded by Credit Suisse. On Sunday, August 16 the stock rating was maintained by Needham with “Buy”.

According to Zacks Investment Research, “ResMed Inc. is a leading designer, manufacturer and distributor of medical equipment for treating and diagnosing sleep disordered breathing. Sleep disordered breathing includes sleep apnea and related respiratory conditions. The company sells a comprehensive range of diagnostic and treatment devices in countries through a combination of wholly owned subsidiaries and independent distributors.”

Insitutional Activity: The institutional sentiment decreased to 1.44 in Q2 2016. Its down 0.01, from 1.45 in 2016Q1. The ratio is negative, as 42 funds sold all ResMed Inc. shares owned while 87 reduced positions. 36 funds bought stakes while 150 increased positions. They now own 83.87 million shares or 2.40% more from 81.90 million shares in 2016Q1.
The Virginia-based Quantitative Invest Mngmt Ltd Liability Com has invested 0.16% in ResMed Inc. (NYSE:RMD). Tokio Marine Asset Management Ltd reported 5,172 shares or 0.03% of all its holdings. Blackrock Gru Ltd last reported 0.02% of its portfolio in the stock. Avalon Ltd Llc owns 28,858 shares or 0.07% of their US portfolio. Lba Wealth Mgmt Ltd Liability Co accumulated 134 shares or 0% of the stock. D E Shaw And holds 154,846 shares or 0.02% of its portfolio. Cohen Klingenstein Ltd Company has 0.08% invested in the company for 6,915 shares. Metropolitan Life Insurance Ny has 138,218 shares for 0.07% of their US portfolio. Deutsche National Bank Ag last reported 422,732 shares in the company. Capstone Asset Management Commerce last reported 0.16% of its portfolio in the stock. Whittier Trust last reported 0% of its portfolio in the stock. Mycio Wealth Prtnrs Ltd Company holds 0.01% or 1,000 shares in its portfolio. Old Mutual Global Invsts (Uk) Ltd holds 0.33% or 278,470 shares in its portfolio. Dekabank Deutsche Girozentrale, a Germany-based fund reported 19,182 shares. Ls Invest Advsr Llc last reported 0.06% of its portfolio in the stock.

Insider Transactions: Since April 4, 2016, the stock had 0 insider purchases, and 23 selling transactions for $21.56 million net activity. On Thursday, August 11 Sandercock Brett sold $2.47M worth of the stock or 35,000 shares. FARRELL PETER C had sold 20,000 shares worth $1.15M. The insider TAYLOR RONALD R sold 20,615 shares worth $1.43M. Farrell Michael J. had sold 5,975 shares worth $354,557. Another trade for 36,000 shares valued at $2.52M was made by PACE GARY W on Friday, August 19. PENDARVIS DAVID had sold 6,000 shares worth $381,720 on Tuesday, July 5. $1.71 million worth of ResMed Inc. (NYSE:RMD) was sold by WAREHAM JOHN P on Monday, August 8.

More recent ResMed Inc. (NYSE:RMD) news were published by: Forbes.com which released: “ResMed Becomes Oversold” on September 23, 2016. Also Prnewswire.com published the news titled: “ResMed Inc. Announces Results for the Fourth Quarter of Fiscal Year 2016” on July 28, 2016. Prnewswire.com‘s news article titled: “ResMed to Announce First Quarter Fiscal Year 2017 Results” with publication date: September 27, 2016 was also an interesting one.

RMD Company Profile

ResMed Inc., incorporated on March 31, 1994, is a holding company. The Company, through its subsidiaries, designs, makes and markets equipment for the diagnosis and treatment of sleep-disordered breathing and other respiratory disorders, including obstructive sleep apnea. The Firm develops a range of products for sleep-disordered breathing and other respiratory disorders, including airdevices, informatics solutions, diagnostic products, mask systems, headgear and other accessories.

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