Medtronic PLC $MDT Holdings Raised by First Eagle Investment Management LLC

Key Points

• First Eagle Investment Management increased its Medtronic stake by 37.2% in the second quarter, purchasing 3.74 million additional shares. Institutional investors and hedge funds collectively own 82.06% of MDT.
• Medtronic exceeded quarterly expectations, reporting $1.45 in EPS versus $1.39 expected and $9.76 billion in revenue versus $9.55 billion forecast; revenue rose 13.7% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $103.92.
• The company declared a quarterly dividend of $0.72 per share, equivalent to $2.88 annually and a 3.1% yield. Despite positive fundamentals and analyst support, some investors caution that the stock may be crowded and vulnerable to increased volatility.

First Eagle Investment Management LLC raised its holdings in shares of Medtronic PLC (NYSE:MDT - Free Report) by 37.2% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 13,783,983 shares of the medical technology company's stock after purchasing an additional 3,739,288 shares during the period. First Eagle Investment Management LLC owned about 1.08% of Medtronic worth $1,078,321,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. California State Teachers Retirement System boosted its holdings in shares of Medtronic by 7,655.7% during the second quarter. California State Teachers Retirement System now owns 158,124,578 shares of the medical technology company's stock valued at $12,370,086,000 after acquiring an additional 156,085,748 shares during the period. BlackRock Inc. increased its holdings in shares of Medtronic by 0.7% in the 2nd quarter. BlackRock Inc. now owns 114,020,787 shares of the medical technology company's stock worth $8,919,846,000 after acquiring an additional 838,220 shares during the period. State Street Corp increased its holdings in shares of Medtronic by 2.0% in the 4th quarter. State Street Corp now owns 61,660,158 shares of the medical technology company's stock worth $5,966,780,000 after acquiring an additional 1,199,621 shares during the period. JPMorgan Chase & Co. lifted its position in Medtronic by 2.7% in the 4th quarter. JPMorgan Chase & Co. now owns 53,616,694 shares of the medical technology company's stock valued at $5,150,420,000 after purchasing an additional 1,419,730 shares during the last quarter. Finally, Capital Research Global Investors lifted its position in Medtronic by 12.6% in the 4th quarter. Capital Research Global Investors now owns 34,573,163 shares of the medical technology company's stock valued at $3,321,101,000 after purchasing an additional 3,880,174 shares during the last quarter. 82.06% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research firms have commented on MDT. Rothschild & Co Redburn decreased their target price on shares of Medtronic from $111.00 to $106.00 and set a "buy" rating for the company in a research report on Friday, June 5th. Weiss Ratings raised Medtronic from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday. Royal Bank Of Canada reiterated an "outperform" rating and set a $118.00 price objective on shares of Medtronic in a research report on Wednesday, September 2nd. Wall Street Zen cut shares of Medtronic from a "buy" rating to a "hold" rating in a research note on Saturday. Finally, Evercore set a $105.00 price objective on Medtronic in a research note on Monday, July 6th. Nineteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $103.92.

Key Stories Impacting Medtronic

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: Medtronic said executives will present at the Wells Fargo Healthcare Conference on September 8 and other upcoming investor events. These appearances could provide additional updates on growth initiatives, product launches, and financial guidance. Medtronic executives to speak at upcoming investor conferences
• Positive Sentiment: Royal Bank of Canada reaffirmed its Outperform rating, while Stifel Nicolaus, Robert W. Baird, TD Cowen, and BTIG Research maintained bullish assessments or projected meaningful price appreciation. The broad analyst support reinforces investor confidence in MDT’s outlook. Royal Bank of Canada reaffirms Outperform rating
• Positive Sentiment: New real-world evidence from Medtronic’s PERSIST addendum study is supporting the company’s Inceptiv spinal cord stimulation system. Further clinical validation could improve adoption prospects and strengthen the pain-management franchise. Medtronic’s PERSIST study builds real-world evidence
• Positive Sentiment: Medtronic’s latest reported quarter exceeded expectations, with earnings of $1.45 per share versus a $1.39 consensus estimate and revenue of $9.76 billion versus $9.55 billion expected. Revenue increased 13.7% year over year, providing a favorable fundamental backdrop.
• Neutral Sentiment: Unusually large options trading indicates elevated investor interest in MDT, but the activity does not by itself establish whether traders expect further gains or a pullback. Medtronic target of unusually large options trading
• Negative Sentiment: A MarketWatch strategy highlighted Medtronic as a healthcare stock that may be overcrowded, recommending a bearish options position because many investors have already bet on additional gains. This raises the risk of profit-taking or volatility despite the positive fundamental and analyst backdrop. Healthcare stocks may be too crowded to own

Medtronic Price Performance

NYSE MDT opened at $94.12 on Monday. The company has a quick ratio of 1.54, a current ratio of 2.07 and a debt-to-equity ratio of 0.50. The stock has a market capitalization of $120.39 billion, a PE ratio of 23.18, a price-to-earnings-growth ratio of 2.21 and a beta of 0.56. Medtronic PLC has a 12-month low of $73.31 and a 12-month high of $106.33. The company has a 50 day moving average price of $86.78 and a two-hundred day moving average price of $85.27.

Medtronic (NYSE:MDT - Get Free Report) last announced its quarterly earnings results on Tuesday, September 1st. The medical technology company reported $1.45 EPS for the quarter, topping 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 company had revenue of $9.76 billion for the quarter, compared to analyst estimates of $9.55 billion. During the same quarter in the prior year, the business posted $1.26 EPS. Medtronic's quarterly revenue was up 13.7% on a year-over-year basis. Medtronic has set its Q2 2027 guidance at 1.320-1.340 EPS and its FY 2027 guidance at 5.940-6.000 EPS. As a group, equities analysts predict that Medtronic PLC will post 5.96 earnings per share for the current fiscal year.

Medtronic Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 16th. Stockholders of record on Friday, September 25th will be given 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 dividend yield of 3.1%. Medtronic's dividend payout ratio (DPR) is currently 70.94%.

About Medtronic

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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