Fifth Third Bancorp Purchases 23,194 Shares of ResMed Inc. $RMD

Key Points

• Fifth Third Bancorp increased its stake in ResMed by 236.9% in the first quarter, adding 23,194 shares to bring its total holdings to 32,985 shares valued at about $7.4 million.
• Wall Street remains mostly positive on ResMed, with an average analyst rating of “Moderate Buy” and a consensus price target of $253.50, though several firms have recently trimmed their targets.
• ResMed reported strong quarterly results, beating earnings and revenue estimates, while also paying a $0.60 quarterly dividend that equates to a 1.2% annual yield.

Fifth Third Bancorp raised its holdings in ResMed Inc. (NYSE:RMD - Free Report) by 236.9% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 32,985 shares of the medical equipment provider's stock after purchasing an additional 23,194 shares during the quarter. Fifth Third Bancorp's holdings in ResMed were worth $7,405,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently bought and sold shares of the business. International Assets Investment Management LLC acquired a new position in ResMed during the 4th quarter worth about $25,000. ORG Partners LLC increased its position in ResMed by 181.6% in the 4th quarter. ORG Partners LLC now owns 107 shares of the medical equipment provider's stock valued at $26,000 after acquiring an additional 69 shares in the last quarter. Imprint Wealth LLC acquired a new stake in ResMed in the 3rd quarter valued at about $26,000. WFA of San Diego LLC bought a new position in shares of ResMed in the second quarter worth about $26,000. Finally, Sunbelt Securities Inc. bought a new position in shares of ResMed in the third quarter worth about $31,000. Institutional investors and hedge funds own 54.98% of the company's stock.

Analysts Set New Price Targets

Several research analysts have issued reports on RMD shares. Mizuho reduced their price objective on ResMed from $235.00 to $220.00 and set an "outperform" rating on the stock in a report on Wednesday. Robert W. Baird set a $225.00 target price on ResMed in a research report on Friday, May 1st. KeyCorp cut their price target on ResMed from $290.00 to $266.00 and set an "overweight" rating on the stock in a research note on Monday, June 22nd. Weiss Ratings cut ResMed from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, May 22nd. Finally, Wells Fargo & Company lowered their price objective on ResMed from $227.00 to $225.00 and set an "equal weight" rating for the company in a research report on Wednesday, July 8th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and eight have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $253.50.

ResMed Stock Performance

RMD stock opened at $198.46 on Thursday. ResMed Inc. has a twelve month low of $180.26 and a twelve month high of $293.81. 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 market cap of $28.79 billion, a P/E ratio of 19.14, a price-to-earnings-growth ratio of 1.15 and a beta of 0.78. The business's fifty day moving average is $199.64 and its 200-day moving average is $227.13.

ResMed (NYSE:RMD - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share for the quarter, topping the consensus estimate of $2.79 by $0.07. The business had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.42 billion. ResMed had a net margin of 27.44% and a return on equity of 25.35%. ResMed's quarterly revenue was up 10.8% compared to the same quarter last year. During the same quarter last year, the firm earned $2.37 EPS. Equities research analysts forecast that ResMed Inc. will post 11.13 EPS for the current year.

ResMed Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Thursday, May 14th were issued a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Thursday, May 14th. ResMed's payout ratio is 23.14%.

Insider Transactions at ResMed

In other news, CEO Michael J. Farrell sold 4,991 shares of the firm's stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $218.55, for a total transaction of $1,090,783.05. Following the completion of the transaction, the chief executive officer directly owned 466,223 shares of the company's stock, valued at $101,893,036.65. This trade represents a 1.06% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 14,973 shares of company stock valued at $3,096,067. 0.65% of the stock is currently owned by company insiders.

About ResMed

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.

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