IFP Advisors Inc Boosts Stake in Medtronic PLC $MDT

Key Points

• IFP Advisors Inc increased its Medtronic stake by 33.4% in the fourth quarter, adding 14,359 shares to bring its total to 57,287 shares worth about $5.5 million.
• Medtronic reported quarterly earnings of $1.36 per share, topping estimates, on revenue of $9.02 billion, which also beat Wall Street expectations and rose 5.8% year over year.
• The company announced a $650 million cash acquisition of SPR Therapeutics to expand its neuromodulation and chronic pain treatment business, even as investors weigh integration risk and near-term pressure on the stock.

IFP Advisors Inc raised its holdings in shares of Medtronic PLC (NYSE:MDT - Free Report) by 33.4% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 57,287 shares of the medical technology company's stock after buying an additional 14,359 shares during the quarter. IFP Advisors Inc's holdings in Medtronic were worth $5,503,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in MDT. Lodestone Wealth Management LLC purchased a new position in Medtronic during the fourth quarter worth about $27,000. Anfield Capital Management LLC grew its position in Medtronic by 410.7% during the fourth quarter. Anfield Capital Management LLC now owns 286 shares of the medical technology company's stock worth $27,000 after buying an additional 230 shares in the last quarter. Valley Wealth Managers Inc. purchased a new position in Medtronic during the third quarter worth about $29,000. Board of the Pension Protection Fund purchased a new position in Medtronic during the fourth quarter worth about $29,000. Finally, GoalVest Advisory LLC purchased a new position in Medtronic during the fourth quarter worth about $29,000. 82.06% of the stock is currently owned by hedge funds and other institutional investors.

Medtronic Trading Down 0.6%

Shares of MDT stock opened at $78.09 on Thursday. Medtronic PLC has a 12-month low of $74.40 and a 12-month high of $106.33. The company has a quick ratio of 1.87, a current ratio of 2.54 and a debt-to-equity ratio of 0.57. The business has a 50-day moving average price of $83.94 and a two-hundred day moving average price of $93.34. The firm has a market cap of $100.26 billion, a P/E ratio of 21.75, a price-to-earnings-growth ratio of 1.87 and a beta of 0.62.

Medtronic (NYSE:MDT - Get Free Report) last released its earnings results on Tuesday, February 17th. The medical technology company reported $1.36 earnings per share for the quarter, beating analysts' consensus estimates of $1.34 by $0.02. Medtronic had a return on equity of 14.82% and a net margin of 13.00%.The company had revenue of $9.02 billion during the quarter, compared to analyst estimates of $8.89 billion. During the same quarter in the previous year, the company posted $1.38 EPS. Medtronic's revenue for the quarter was up 5.8% on a year-over-year basis. Equities analysts anticipate that Medtronic PLC will post 5.56 EPS for the current fiscal year.

Medtronic Dividend Announcement

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

Key Headlines Impacting Medtronic

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: Medtronic announced plans to acquire privately held SPR Therapeutics for about $650 million in cash, a deal that should expand its neuromodulation franchise and add temporary peripheral nerve stimulation technology for chronic pain treatment. Article: Medtronic announces intent to acquire SPR Therapeutics, Inc., expanding care options for people living with chronic pain
• Positive Sentiment: Broader healthcare trading was mixed but stable, which suggests the stock’s move is more about company news than a sector-wide selloff. Article: Sector Update: Healthcare Stocks Mixed Late Afternoon
• Neutral Sentiment: Medtronic also named Kweli Thompson to lead its neuroscience portfolio, a leadership change that keeps attention on execution in one of its key growth businesses. Article: Medtronic, BD name new leaders
• Negative Sentiment: Investors appear to be weighing the $650 million cash outlay and integration risk from the SPR deal, which may be pressuring the shares in the near term. Article: Medtronic (MDT) Stock Slides as Company Announces $650M SPR Therapeutics Deal

Wall Street Analysts Forecast Growth

MDT has been the subject of several recent analyst reports. JPMorgan Chase & Co. reduced their target price on Medtronic from $105.00 to $100.00 and set a "neutral" rating for the company in a research report on Wednesday, February 18th. Piper Sandler reduced their target price on Medtronic from $105.00 to $91.00 and set a "neutral" rating for the company in a research report on Wednesday, April 1st. Barclays lifted their price target on Medtronic from $118.00 to $120.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 1st. Leerink Partners reaffirmed an "outperform" rating and set a $119.00 price target on shares of Medtronic in a research note on Tuesday, March 10th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $120.00 price target on shares of Medtronic in a research note on Thursday, March 26th. Fifteen equities research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $107.80.

Medtronic Company 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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