Medtronic (NYSE:MDT) Raised to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Medtronic to “Buy” from “Hold,” while broader analyst coverage remains favorable with a “Moderate Buy” consensus rating and an average price target of $103.92.
• Medtronic exceeded quarterly expectations, reporting $1.45 in adjusted EPS versus $1.39 expected and revenue of $9.76 billion versus $9.55 billion forecast; revenue increased 13.7% year over year.
• Despite positive analyst sentiment and new product/regulatory developments, the stock has faced pressure since earnings, with elevated put-option activity signaling increased downside hedging and investor concerns about future earnings momentum.

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

A number of other research firms have also recently commented on MDT. Stifel Nicolaus boosted their price target on shares of Medtronic from $80.00 to $95.00 and gave the stock a "hold" rating in a research note on Wednesday, September 2nd. Truist Financial reissued a "hold" rating and issued a $99.00 target price (up from $86.00) on shares of Medtronic in a research note on Wednesday, September 2nd. Weiss Ratings upgraded Medtronic from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, September 4th. TD Cowen restated a "buy" rating and set a $110.00 price target on shares of Medtronic in a research report on Wednesday. Finally, Rothschild & Co Redburn dropped their price target on Medtronic from $111.00 to $106.00 and set a "buy" rating for the company in a research note on Friday, June 5th. Nineteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $103.92.

Medtronic Stock Down 0.2%

MDT opened at $86.31 on Friday. The company has a fifty day moving average price of $90.15 and a 200-day moving average price of $84.79. The firm has a market capitalization of $110.40 billion, a P/E ratio of 21.26, a price-to-earnings-growth ratio of 1.97 and a beta of 0.55. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.07 and a quick ratio of 1.54. Medtronic has a one year low of $73.31 and a one year high of $106.33.

Medtronic (NYSE:MDT - Get Free Report) last released its quarterly earnings results on Tuesday, September 1st. The medical technology company reported $1.45 earnings per share for the quarter, topping the consensus estimate of $1.39 by $0.06. The firm had revenue of $9.76 billion for the quarter, compared to analysts' expectations of $9.55 billion. Medtronic had a net margin of 13.93% and a return on equity of 14.78%. The business's quarterly revenue was up 13.7% on a year-over-year basis. During the same quarter in the prior year, the firm 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. Equities research analysts expect that Medtronic will post 5.98 earnings per share for the current fiscal year.

Insider Activity at Medtronic

In other news, EVP Harry Kiil sold 1,483 shares of the company's stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $93.65, for a total transaction of $138,882.95. Following the completion of the transaction, the executive vice president directly owned 42,186 shares of the company's stock, valued at approximately $3,950,718.90. This represents a 3.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.27% of the company's stock.

Institutional Trading of Medtronic

Large investors have recently modified their holdings of the business. Monetary Solutions Ltd purchased a new stake in Medtronic in the 4th quarter worth approximately $27,000. IAG Wealth Partners LLC purchased a new position in shares of Medtronic during the second quarter valued at approximately $30,000. Pin Oak Investment Advisors Inc. bought a new position in shares of Medtronic during the second quarter valued at approximately $32,000. Community Bank N.A. purchased a new stake in Medtronic in the second quarter worth $33,000. Finally, Core Capital Management & Research inc. bought a new stake in Medtronic in the second quarter valued at $33,000. 82.06% of the stock is owned by institutional investors.

Trending Headlines about Medtronic

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: TD Cowen reiterated a “Buy” rating on Medtronic, providing an analyst-confidence signal for the medical-device maker. Medtronic Earns Buy Rating from TD Cowen
• Positive Sentiment: The FDA granted breakthrough-device designation to Medtronic’s below-the-knee drug-coated balloon, potentially accelerating regulatory interaction and supporting the company’s peripheral vascular pipeline. Medtronic Receives Breakthrough Designation
• Positive Sentiment: The American Medical Association approved Category I CPT codes for the Altaviva tibial neuromodulation device and Symplicity Spyral renal-denervation system. The codes become effective in January 2028 and could improve reimbursement visibility and adoption over the long term. Medtronic CPT Code Approvals
• Positive Sentiment: New regulatory clearances for cardiac mapping and ablation software may strengthen Medtronic’s competitive position in the growing pulsed-field ablation market. Medtronic Cardiac Software Clearances
• Neutral Sentiment: A commentary argues that Medtronic’s dividend and defensive healthcare exposure could remain attractive if inflation and interest rates stay elevated, but it does not represent a new company-specific catalyst. Inflation and Dividend Stocks
• Neutral Sentiment: An investment opinion says Medtronic’s long-term strategy could still appeal to investors, although Johnson & Johnson’s stronger historical performance highlights execution concerns. Johnson and Johnson Compared With Medtronic
• Negative Sentiment: The $4 billion tax-free MiniMed exchange offer appears to be losing investor appeal. Reduced participation could make the split-off a weaker near-term catalyst and leave shareholders focused on execution and valuation risks. Medtronic MiniMed Exchange Offer
• Negative Sentiment: Medtronic’s stock has declined since its latest earnings report, with investors apparently looking for stronger forward earnings momentum despite the prior quarterly revenue and EPS beat. Medtronic Stock Since Earnings
• Negative Sentiment: Put-option volume was about 45% above average, indicating increased downside hedging or bearish positioning around MDT.

About Medtronic

Medtronic plc is a global medical technology company that develops and manufactures devices, therapies and healthcare solutions for treating chronic and acute conditions. Its products are used in areas including cardiac and vascular care, neuroscience, medical and surgical procedures, and diabetes management.

The company's portfolio includes pacemakers, implantable cardioverter-defibrillators, cardiac ablation systems, stents and other cardiovascular products; neuromodulation systems, deep-brain stimulation devices and spinal technologies; surgical instruments, robotic-assisted surgery systems and gastrointestinal diagnostic tools; and insulin pumps and related diabetes technologies.

Medtronic traces its origins to 1949, when Earl Bakken and Palmer Hermundslie founded the company in Minneapolis, Minnesota.

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