Medtronic PLC (NYSE:MDT) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Medtronic, with 19 buy ratings and nine holds among 28 firms. The average 12-month price target is $103.92, above the reported share price of $93.87.
• Medtronic exceeded quarterly expectations, reporting $1.45 in adjusted EPS versus the $1.39 consensus and $9.76 billion in revenue versus $9.55 billion expected. Revenue increased 13.7% year over year.
• The company declared a quarterly dividend of $0.72 per share, representing a $2.88 annualized payout and a 3.1% yield. Medtronic is also advancing the separation of MiniMed through an exchange offer and related SEC filing.

Medtronic PLC (NYSE:MDT - Get Free Report) has been assigned an average rating of "Moderate Buy" from the twenty-eight research firms that are currently covering the stock, MarketBeat reports. Nine equities research analysts have rated the stock with a hold recommendation and nineteen have issued a buy recommendation on the company. The average 1 year target price among analysts that have covered the stock in the last year is $103.92.

A number of equities research analysts have issued reports on MDT shares. Truist Financial reaffirmed a "hold" rating and set a $99.00 target price (up from $86.00) on shares of Medtronic in a research report on Wednesday, September 2nd. BTIG Research lifted their price target on shares of Medtronic from $91.00 to $100.00 and gave the company a "buy" rating in a research report on Tuesday, September 1st. Royal Bank Of Canada restated an "outperform" rating and issued a $118.00 price objective on shares of Medtronic in a research note on Wednesday, September 2nd. Rothschild & Co Redburn reduced their price objective on shares of Medtronic from $111.00 to $106.00 and set a "buy" rating for the company in a research note on Friday, June 5th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $92.00 price objective on shares of Medtronic in a report on Thursday, September 3rd.

Medtronic Price Performance

NYSE MDT opened at $93.87 on Tuesday. Medtronic has a fifty-two week low of $73.31 and a fifty-two week high of $106.33. The stock's 50-day moving average is $88.13 and its two-hundred day moving average is $85.06. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.07 and a quick ratio of 1.54. The firm has a market cap of $120.07 billion, a P/E ratio of 23.12, a price-to-earnings-growth ratio of 2.13 and a beta of 0.56.

Medtronic (NYSE:MDT - Get Free Report) last announced its quarterly earnings results on Tuesday, September 1st. The medical technology company reported $1.45 earnings per share for the quarter, topping analysts' consensus estimates 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 return on equity of 14.78% and a net margin of 13.93%.The business's quarterly revenue was up 13.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $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. On average, analysts anticipate that Medtronic will post 5.96 earnings per share for the current fiscal year.

Medtronic Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 16th. Shareholders of record on Friday, September 25th will be given a dividend of $0.72 per share. 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 3.1%. Medtronic's payout ratio is currently 70.94%.

Key Headlines Impacting Medtronic

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: Medtronic launched an exchange offer to distribute at least 80.1% of MiniMed to Medtronic shareholders. Investors may exchange Medtronic ordinary shares for MiniMed stock, generally on a tax-free basis for U.S. federal income tax purposes. The offer covers up to 225,361,295 MiniMed shares and advances Medtronic’s previously announced separation plan. Medtronic Launches Exchange Offer to Complete Separation of MiniMed
• Positive Sentiment: The divestiture should allow Medtronic to concentrate resources and management attention on its cardiovascular, neuroscience and surgical portfolios. Completing the split-off could improve strategic clarity and give shareholders direct ownership of MiniMed rather than leaving Medtronic with a large remaining stake. Medtronic begins final steps to separate MiniMed
• Positive Sentiment: MiniMed filed a Form S-4 registration statement with the SEC for the exchange offer, marking an important procedural step toward closing the separation. If the offer is oversubscribed, the number of shares accepted may be prorated. MiniMed Files Form S-4
• Neutral Sentiment: An analyst initiated a Buy rating on MiniMed, citing attractive valuation and the structure of the exchange offer. The view is more directly supportive of MMED than MDT, but it may improve investor confidence in the value Medtronic is unlocking through the separation. Analyst Initiates Buy on MiniMed
• Neutral Sentiment: Commentary comparing Medtronic with Abbott and discussing Medtronic’s past execution challenges provides broader investment context, but does not represent a new fundamental catalyst or change to MDT’s earnings outlook. Medtronic vs. Abbott

Institutional Investors Weigh In On Medtronic

Hedge funds and other institutional investors have recently made changes to their positions in the business. Ipsen Advisor Group LLC raised its holdings in shares of Medtronic by 1.7% during the fourth quarter. Ipsen Advisor Group LLC now owns 5,952 shares of the medical technology company's stock valued at $572,000 after purchasing an additional 101 shares during the period. Arlington Trust Co LLC grew its stake in shares of Medtronic by 11.6% in the 2nd quarter. Arlington Trust Co LLC now owns 1,157 shares of the medical technology company's stock valued at $91,000 after buying an additional 120 shares during the period. Bigelow Investment Advisors LLC grew its stake in shares of Medtronic by 1.1% in the 1st quarter. Bigelow Investment Advisors LLC now owns 11,125 shares of the medical technology company's stock valued at $964,000 after buying an additional 121 shares during the period. Bank & Trust Co increased its position in Medtronic by 2.8% in the 2nd quarter. Bank & Trust Co now owns 4,373 shares of the medical technology company's stock valued at $342,000 after buying an additional 121 shares in the last quarter. Finally, Larson Financial Group LLC increased its position in Medtronic by 0.3% in the 4th quarter. Larson Financial Group LLC now owns 39,717 shares of the medical technology company's stock valued at $3,815,000 after buying an additional 123 shares in the last quarter. 82.06% of the stock is owned by institutional investors and hedge funds.

About Medtronic

Medtronic plc is a global medical technology company that develops, manufactures and sells devices and therapies used to diagnose and treat a broad range of medical conditions. Its products are designed for hospitals, physicians and patients across areas including cardiac care, diabetes, neurological disorders, spinal conditions and surgical procedures.

The company's portfolio includes pacemakers, implantable cardioverter-defibrillators, cardiac ablation systems, heart valves, neurostimulation systems, implantable pumps, spinal implants and surgical technologies.

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