Hodges Capital Management Inc. Cuts Holdings in Medtronic PLC $MDT

Key Points

• Hodges Capital Management cut its Medtronic stake by 78.2% in the first quarter, reducing holdings to 5,733 shares worth about $497,000.
• Several analysts remain constructive on Medtronic despite some lowered price targets; the stock’s consensus rating is still “Moderate Buy” with an average target of $98.96.
• Medtronic recently beat quarterly EPS and revenue estimates and raised its dividend to $0.72 per share quarterly, implying a 3.5% yield.

Hodges Capital Management Inc. decreased its stake in Medtronic PLC (NYSE:MDT - Free Report) by 78.2% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 5,733 shares of the medical technology company's stock after selling 20,619 shares during the period. Hodges Capital Management Inc.'s holdings in Medtronic were worth $497,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently made changes to their positions in MDT. Busey Bank lifted its stake in Medtronic by 2.3% during the first quarter. Busey Bank now owns 166,798 shares of the medical technology company's stock worth $14,453,000 after purchasing an additional 3,799 shares during the last quarter. Abel Hall LLC bought a new position in shares of Medtronic during the 1st quarter valued at about $521,000. Bogart Wealth LLC raised its holdings in shares of Medtronic by 2.8% during the 1st quarter. Bogart Wealth LLC now owns 130,401 shares of the medical technology company's stock valued at $11,299,000 after buying an additional 3,577 shares in the last quarter. Ascentis Independent Advisors raised its holdings in shares of Medtronic by 89.9% during the 1st quarter. Ascentis Independent Advisors now owns 12,514 shares of the medical technology company's stock valued at $1,084,000 after buying an additional 5,925 shares in the last quarter. Finally, Stephens Inc. AR lifted its position in Medtronic by 6.5% in the 1st quarter. Stephens Inc. AR now owns 284,904 shares of the medical technology company's stock worth $24,815,000 after buying an additional 17,286 shares during the last quarter. Hedge funds and other institutional investors own 82.06% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on MDT. Mizuho cut their target price on Medtronic from $120.00 to $100.00 and set an "outperform" rating for the company in a research note on Wednesday, June 3rd. TD Cowen restated a "buy" rating and issued a $119.00 price objective on shares of Medtronic in a report on Thursday, June 4th. Robert W. Baird lowered their price target on shares of Medtronic from $93.00 to $85.00 and set a "neutral" rating for the company in a research note on Thursday, June 4th. Royal Bank Of Canada reissued an "outperform" rating and issued a $118.00 target price on shares of Medtronic in a research note on Thursday, June 4th. Finally, Leerink Partners dropped their price objective on Medtronic from $117.00 to $104.00 and set an "outperform" rating for the company in a research note on Thursday, June 4th. Seventeen investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $98.96.

Medtronic Trading Down 0.1%

Shares of MDT opened at $83.09 on Tuesday. The firm's 50-day moving average price is $79.04 and its 200-day moving average price is $89.00. The firm has a market capitalization of $106.36 billion, a price-to-earnings ratio of 22.28, a PEG ratio of 2.23 and a beta of 0.56. The company has a current ratio of 2.13, a quick ratio of 1.62 and a debt-to-equity ratio of 0.52. Medtronic PLC has a 1-year low of $73.31 and a 1-year high of $106.33.

Medtronic (NYSE:MDT - Get Free Report) last posted its earnings results on Wednesday, June 3rd. The medical technology company reported $1.55 earnings per share for the quarter, topping analysts' consensus estimates of $1.54 by $0.01. Medtronic had a return on equity of 14.51% and a net margin of 13.20%.The firm had revenue of $9.81 billion for the quarter, compared to the consensus estimate of $9.62 billion. During the same quarter in the prior year, the business earned $1.62 EPS. The business's revenue for the quarter was up 9.9% on a year-over-year basis. Medtronic has set its FY 2027 guidance at 5.900-6.000 EPS. Sell-side analysts anticipate that Medtronic PLC will post 5.94 EPS for the current year.

Medtronic Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, July 17th. Investors of record on Friday, June 26th will be paid a $0.72 dividend. The ex-dividend date of this dividend is Friday, June 26th. This is a positive change from Medtronic's previous quarterly dividend of $0.71. This represents a $2.88 annualized dividend and a yield of 3.5%. Medtronic's payout ratio is currently 77.21%.

Insiders Place Their Bets

In other Medtronic news, EVP Harry Skip Kiil sold 4,189 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $80.44, for a total value of $336,963.16. Following the completion of the transaction, the executive vice president owned 37,227 shares in the company, valued at approximately $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 can be accessed through this link. 0.26% of the stock is currently owned by insiders.

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).

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