Medtronic (NYSE:MDT) Downgraded by Wall Street Zen to Hold

Key Points

• Wall Street Zen downgraded Medtronic from “Buy” to “Hold,” although the broader analyst consensus remains “Moderate Buy” with a $103.92 target price.
• Medtronic’s latest quarter exceeded expectations, reporting $1.45 in EPS versus $1.39 expected and $9.76 billion in revenue versus $9.55 billion expected; revenue grew 13.7% year over year.
• Shares opened at $94.12, while institutional investors own 82.06% of the stock. Despite positive analyst and clinical developments, elevated investor interest and concerns that the healthcare trade is overcrowded could contribute to volatility.

Medtronic (NYSE:MDT - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday, Wall Street Zen reports.

Several other brokerages have also issued reports on MDT. Royal Bank Of Canada restated an "outperform" rating and set a $118.00 target price on shares of Medtronic in a research report on Wednesday. Mizuho set a $115.00 price objective on shares of Medtronic in a report on Wednesday. Rothschild & Co Redburn decreased their target price on Medtronic from $111.00 to $106.00 and set a "buy" rating for the company in a report on Friday, June 5th. Stifel Nicolaus boosted their price objective on shares of Medtronic from $80.00 to $95.00 and gave the stock a "hold" rating in a research report on Wednesday. Finally, TD Cowen lifted their price objective on Medtronic from $100.00 to $110.00 and gave the stock a "buy" rating in a research report on Friday, August 28th. Nineteen equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $103.92.

Medtronic Price Performance

Shares of Medtronic stock opened at $94.12 on Friday. The company has a quick ratio of 1.62, a current ratio of 2.13 and a debt-to-equity ratio of 0.52. Medtronic has a 52 week low of $73.31 and a 52 week high of $106.33. The stock's 50-day simple moving average is $86.78 and its 200-day simple moving average is $85.37. The company has a market capitalization of $120.47 billion, a price-to-earnings ratio of 23.18, a PEG ratio of 2.18 and a beta of 0.56.

Medtronic (NYSE:MDT - Get Free Report) last posted its earnings results on Tuesday, September 1st. The medical technology company reported $1.45 earnings per share for the quarter, beating the consensus estimate of $1.39 by $0.06. The company had revenue of $9.76 billion during the quarter, compared to analysts' expectations of $9.55 billion. Medtronic had a net margin of 13.93% and a return on equity of 14.89%. Medtronic's quarterly revenue was up 13.7% on a year-over-year basis. During the same period last year, the company posted $1.26 earnings per share. Medtronic has set its Q2 2027 guidance at 1.320-1.340 EPS and its FY 2027 guidance at 5.940-6.000 EPS. As a group, analysts expect that Medtronic will post 5.96 earnings per share for the current fiscal year.

Insider Activity at Medtronic

In related news, EVP Harry Kiil sold 4,189 shares of the stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $80.44, for a total transaction of $336,963.16. Following the completion of the sale, the executive vice president directly owned 37,227 shares of the company's stock, valued at $2,994,539.88. This represents a 10.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.27% of the stock is owned by insiders.

Institutional Investors Weigh In On Medtronic

Hedge funds have recently made changes to their positions in the company. Monetary Solutions Ltd acquired a new stake in shares of Medtronic during the fourth quarter worth approximately $27,000. Acumen Wealth Advisors LLC acquired a new stake in Medtronic during the 4th quarter valued at $29,000. IAG Wealth Partners LLC bought a new position in shares of Medtronic in the second quarter worth about $30,000. Imprint Wealth LLC acquired a new position in shares of Medtronic during the third quarter valued at $31,000. Finally, Basepoint Wealth LLC bought a new stake in shares of Medtronic during the fourth quarter worth approximately $32,000. Hedge funds and other institutional investors own 82.06% of the company's stock.

Medtronic News Summary

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: Medtronic said executives will present at the Wells Fargo Healthcare Conference on September 8 and other upcoming investor events. These appearances could provide additional updates on growth initiatives, product launches, and financial guidance. Medtronic executives to speak at upcoming investor conferences
• Positive Sentiment: Royal Bank of Canada reaffirmed its Outperform rating, while Stifel Nicolaus, Robert W. Baird, TD Cowen, and BTIG Research maintained bullish assessments or projected meaningful price appreciation. The broad analyst support reinforces investor confidence in MDT’s outlook. Royal Bank of Canada reaffirms Outperform rating
• Positive Sentiment: New real-world evidence from Medtronic’s PERSIST addendum study is supporting the company’s Inceptiv spinal cord stimulation system. Further clinical validation could improve adoption prospects and strengthen the pain-management franchise. Medtronic’s PERSIST study builds real-world evidence
• Positive Sentiment: Medtronic’s latest reported quarter exceeded expectations, with earnings of $1.45 per share versus a $1.39 consensus estimate and revenue of $9.76 billion versus $9.55 billion expected. Revenue increased 13.7% year over year, providing a favorable fundamental backdrop.
• Neutral Sentiment: Unusually large options trading indicates elevated investor interest in MDT, but the activity does not by itself establish whether traders expect further gains or a pullback. Medtronic target of unusually large options trading
• Negative Sentiment: A MarketWatch strategy highlighted Medtronic as a healthcare stock that may be overcrowded, recommending a bearish options position because many investors have already bet on additional gains. This raises the risk of profit-taking or volatility despite the positive fundamental and analyst backdrop. Healthcare stocks may be too crowded to own

Medtronic Company Profile

Medtronic plc is a global medical technology company that develops and manufactures a broad range of therapeutic devices and health care solutions. Headquartered legally in Ireland with principal operational offices in the United States, the company markets products to hospitals, physicians and health systems worldwide and has grown from its founding in 1949 into one of the largest medical-device manufacturers serving global health-care markets.

Medtronic's offerings span several clinical areas, including cardiac rhythm and heart failure (pacemakers, implantable cardioverter‑defibrillators and related cardiac therapies), minimally invasive and surgical technologies (laparoscopic and advanced energy devices, visualization systems and surgical innovations), restorative therapies (spine and orthopedics, neuromodulation and neurovascular treatments) and diabetes management (insulin-delivery systems and glucose monitoring solutions).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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