Medtronic PLC (MDT) - What Are Researchers Thinking About This Stock?

Key Points

• Analysts remain moderately bullish: Medtronic has a “Moderate Buy” consensus from 28 brokerages, with 18 buy ratings and 10 holds. The average 12-month price target is $102.92, above the reported $88.56 share price.
• Recent results exceeded expectations: Medtronic reported quarterly earnings of $1.45 per share versus the $1.39 consensus estimate, while revenue rose 13.7% year over year to $9.76 billion. The company also declared a quarterly dividend of $0.72, representing a 3.3% annualized yield.
• Growth prospects are balanced by investor caution: The MiniMed split-off, new clinical and reimbursement developments, and strong pulsed-field ablation demand could sharpen Medtronic’s focus and support growth. However, short interest surged 132%, and ownership data showed more institutions reducing positions than adding them.

Medtronic PLC (NYSE:MDT - Get Free Report) has earned a consensus rating of "Moderate Buy" from the twenty-eight brokerages that are presently covering the stock, MarketBeat.com reports. Ten research analysts have rated the stock with a hold recommendation and eighteen have given a buy recommendation to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $102.92.

MDT has been the topic of a number of analyst reports. Barclays raised Medtronic to a "hold" rating in a report on Wednesday. Robert W. Baird increased their target price on Medtronic from $91.00 to $100.00 and gave the stock a "neutral" rating in a research note on Wednesday, September 2nd. Piper Sandler reissued a "neutral" rating on shares of Medtronic in a report on Monday, August 10th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $92.00 price target on shares of Medtronic in a report on Thursday, September 3rd. Finally, Bank of America lifted their price target on Medtronic from $95.00 to $110.00 and gave the company a "buy" rating in a research note on Wednesday, September 2nd.

Medtronic Stock Up 0.9%

Shares of Medtronic stock opened at $88.56 on Friday. Medtronic has a one year low of $73.31 and a one year high of $106.33. The company has a market cap of $113.28 billion, a P/E ratio of 21.81, a PEG ratio of 2.00 and a beta of 0.55. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.54 and a current ratio of 2.07. The firm has a fifty day moving average of $90.28 and a two-hundred day moving average of $84.79.

Medtronic (NYSE:MDT - Get Free Report) last issued 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. Medtronic had a net margin of 13.93% and a return on equity of 14.78%. The business had revenue of $9.76 billion for the quarter, compared to the consensus estimate of $9.55 billion. During the same quarter in the previous year, the firm earned $1.26 earnings per share. The business's quarterly revenue was up 13.7% compared to the same quarter last year. Medtronic has set its Q2 2027 guidance at 1.320-1.340 EPS and its FY 2027 guidance at 5.940-6.000 EPS. On average, analysts forecast that Medtronic will post 5.98 earnings per share for the current year.

Medtronic Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 16th. Shareholders of record on Friday, September 25th will be issued a $0.72 dividend. The ex-dividend date of this dividend is Friday, September 25th. This represents a $2.88 dividend on an annualized basis and a yield of 3.3%. Medtronic's dividend payout ratio (DPR) is 70.94%.

More Medtronic News

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: MiniMed split-off nears completion: Medtronic finalized a 4.5939-to-1 exchange ratio and will exchange up to approximately 225.4 million MiniMed shares. Depending on investor participation, roughly 49.1 million to 55.0 million MDT shares could be accepted, potentially reducing the share count and sharpening the company’s focus on core medical technologies. Medtronic Announces Final Exchange Ratio in MiniMed Split-Off
• Positive Sentiment: Growth initiatives gaining visibility: New clinical evidence for the Altaviva tibial neuromodulation device, upcoming Category I CPT codes for Altaviva and Symplicity Spyral, and continued investment in advanced therapy platforms support Medtronic’s effort to accelerate growth beyond its mature businesses. Investors React to Medtronic Growth Initiatives
• Positive Sentiment: Cardiac ablation leadership change: Felicia Kurz was appointed vice president and general manager of Cardiac Ablation Solutions as demand for Medtronic’s pulsed-field ablation products remains strong, reinforcing the company’s expansion in electrophysiology. Medtronic Names Felicia Kurz as Cardiac Ablation VP and GM
• Neutral Sentiment: Analyst and income appeal: Barclays raised its rating to Hold, while coverage highlights Medtronic’s dividend yield and its approaching potential Dividend King status. These developments may support valuation but do not represent a bullish recommendation. Medtronic Rating Raised to Hold at Barclays
• Negative Sentiment: Short interest surged: Shares sold short increased 132% to nearly 40.0 million as of September 30, equal to about 3.1% of shares outstanding and 2.7 days of average trading volume. The increase signals that some investors are positioning for weakness, despite the relatively modest short-interest ratio.
• Negative Sentiment: Mixed ownership signals: Recent filings show more institutions reduced MDT positions than added them, while reported insider and congressional transactions consisted of sales. These signals may temper enthusiasm, although they are not necessarily company-specific indicators.

Insider Activity at Medtronic

In other Medtronic news, EVP Harry Kiil sold 1,483 shares of the business's stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $93.65, for a total transaction of $138,882.95. Following the sale, the executive vice president directly owned 42,186 shares in the company, valued at approximately $3,950,718.90. The trade was a 3.40% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.27% of the company's stock.

Institutional Trading of Medtronic

Several hedge funds and other institutional investors have recently made changes to their positions in MDT. Gradient Investments LLC lifted its position in shares of Medtronic by 3.9% in the second quarter. Gradient Investments LLC now owns 496,513 shares of the medical technology company's stock valued at $38,842,000 after acquiring an additional 18,509 shares in the last quarter. Czech National Bank boosted its stake in shares of Medtronic by 4.7% during the second quarter. Czech National Bank now owns 365,443 shares of the medical technology company's stock valued at $28,589,000 after acquiring an additional 16,292 shares during the last quarter. MassMutual Private Wealth & Trust FSB increased its position in Medtronic by 14.8% during the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 149,708 shares of the medical technology company's stock worth $12,918,000 after purchasing an additional 19,315 shares in the last quarter. Worth Asset Management LLC purchased a new stake in Medtronic during the 3rd quarter worth about $1,056,000. Finally, Congress Asset Management Co. acquired a new position in Medtronic in the 3rd quarter valued at about $76,201,000. Institutional investors and hedge funds own 82.06% of the company's stock.

Medtronic Company Profile

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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