Diamond Hill Capital Management Inc. Lowers Stake in Medtronic PLC $MDT

Key Points

• Diamond Hill Capital Management cut its Medtronic stake by 15.5% in the fourth quarter, selling 423,819 shares and leaving it with 2.31 million shares worth about $221.7 million.
• Medtronic reported better-than-expected quarterly results, with EPS of $1.36 and revenue of $9.02 billion, both ahead of analyst estimates. Revenue rose 5.8% year over year.
• The company also paid a quarterly dividend of $0.71 per share, equal to an annualized yield of about 3.6%, while analysts currently rate the stock Moderate Buy on average despite several recent price-target cuts.

Diamond Hill Capital Management Inc. reduced its position in shares of Medtronic PLC (NYSE:MDT - Free Report) by 15.5% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,307,586 shares of the medical technology company's stock after selling 423,819 shares during the quarter. Diamond Hill Capital Management Inc. owned 0.18% of Medtronic worth $221,667,000 as of its most recent SEC filing.

Several other hedge funds have also modified their holdings of MDT. Lodestone Wealth Management LLC purchased a new stake in shares of Medtronic during the 4th quarter worth about $27,000. Anfield Capital Management LLC boosted its stake in shares of Medtronic by 410.7% during the 4th quarter. Anfield Capital Management LLC now owns 286 shares of the medical technology company's stock worth $27,000 after acquiring an additional 230 shares in the last quarter. Valley Wealth Managers Inc. purchased a new stake in shares of Medtronic during the 3rd quarter worth about $29,000. Board of the Pension Protection Fund purchased a new stake in shares of Medtronic during the 4th quarter worth about $29,000. Finally, GoalVest Advisory LLC purchased a new stake in shares of Medtronic during the 4th quarter worth about $29,000. 82.06% of the stock is owned by hedge funds and other institutional investors.

Medtronic Stock Down 0.0%

Shares of NYSE MDT opened at $78.11 on Friday. The company has a 50 day simple moving average of $83.71 and a 200-day simple moving average of $93.25. The company has a market capitalization of $100.29 billion, a P/E ratio of 21.76, a P/E/G ratio of 1.86 and a beta of 0.62. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.54 and a quick ratio of 1.87. Medtronic PLC has a 1 year low of $74.40 and a 1 year high of $106.33.

Medtronic (NYSE:MDT - Get Free Report) last announced its quarterly earnings results on Tuesday, February 17th. The medical technology company reported $1.36 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.34 by $0.02. The business had revenue of $9.02 billion during the quarter, compared to the consensus estimate of $8.89 billion. Medtronic had a net margin of 13.00% and a return on equity of 14.82%. The business's revenue was up 5.8% compared to the same quarter last year. During the same quarter last year, the firm earned $1.38 EPS. On average, equities research analysts predict that Medtronic PLC will post 5.56 earnings per share for the current year.

Medtronic Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, April 17th. Investors of record on Friday, March 27th were given a dividend of $0.71 per share. The ex-dividend date of this dividend was Friday, March 27th. This represents a $2.84 dividend on an annualized basis and a dividend yield of 3.6%. Medtronic's dividend payout ratio (DPR) is presently 79.11%.

Analyst Upgrades and Downgrades

A number of research firms have commented on MDT. Argus cut their price objective on shares of Medtronic from $125.00 to $115.00 and set a "buy" rating for the company in a report on Monday, April 6th. UBS Group cut their price objective on shares of Medtronic from $104.00 to $90.00 and set a "neutral" rating for the company in a report on Wednesday, April 22nd. The Goldman Sachs Group set a $84.00 price target on shares of Medtronic and gave the stock a "neutral" rating in a report on Thursday. Needham & Company LLC restated a "buy" rating and set a $120.00 price target on shares of Medtronic in a report on Thursday, March 26th. Finally, Piper Sandler cut their price target on shares of Medtronic from $105.00 to $91.00 and set a "neutral" rating for the company in a report on Wednesday, April 1st. Fifteen research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $106.45.

More Medtronic News

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: Medtronic said the SPR Therapeutics purchase will strengthen its neuromodulation portfolio by adding temporary peripheral nerve stimulation technology for chronic pain, a move that could support longer-term growth and broaden its treatment offerings. PR Newswire article
• Positive Sentiment: Reuters reported that the deal expands Medtronic’s portfolio of treatments for chronic pain, reinforcing the company’s strategy to grow in higher-value medical device categories. Reuters article
• Neutral Sentiment: Piper Sandler maintained its Hold rating on Medtronic, suggesting analysts are not yet signaling a major re-rating from the news. The Globe and Mail article
• Neutral Sentiment: Healthcare stocks were mixed in afternoon trading, so broader sector movement does not appear to be the main driver of Medtronic’s move. Yahoo Finance sector update
• Negative Sentiment: Some market commentary framed the SPR deal as a reason for MDT’s stock to slide, likely reflecting concern about acquisition costs and execution risk. Blockonomi article

Medtronic 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.