Palouse Capital Management Inc. Acquires 29,275 Shares of Medtronic PLC $MDT

Key Points

• Palouse Capital Management more than doubled its Medtronic stake in the second quarter, acquiring 29,275 additional shares for a total of 57,027 shares valued at approximately $4.46 million.
• Medtronic reported quarterly revenue of $9.81 billion and adjusted EPS of $1.55, exceeding analyst estimates, while revenue grew 9.9% year over year. The company also raised its quarterly dividend to $0.72 per share, representing a 3.4% annualized yield.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $98.83, although targets were recently lowered by several firms. Investors also face potential litigation risks following an $88 million hernia-mesh verdict.

Palouse Capital Management Inc. increased its holdings in Medtronic PLC (NYSE:MDT - Free Report) by 105.5% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 57,027 shares of the medical technology company's stock after acquiring an additional 29,275 shares during the period. Medtronic comprises about 2.8% of Palouse Capital Management Inc.'s holdings, making the stock its 9th largest holding. Palouse Capital Management Inc.'s holdings in Medtronic were worth $4,461,000 at the end of the most recent quarter.

A number of other institutional investors have also recently bought and sold shares of MDT. Anfield Capital Management LLC boosted its holdings in shares of 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 purchasing an additional 230 shares during the period. Monetary Solutions Ltd acquired a new position in Medtronic in the 4th quarter valued at approximately $27,000. Acumen Wealth Advisors LLC acquired a new position in Medtronic in the 4th quarter valued at approximately $29,000. Imprint Wealth LLC acquired a new position in Medtronic in the 3rd quarter valued at approximately $31,000. Finally, Basepoint Wealth LLC purchased a new stake in Medtronic in the 4th quarter worth approximately $32,000. 82.06% of the stock is currently owned by institutional investors and hedge funds.

Medtronic Stock Performance

MDT stock opened at $85.92 on Friday. The company has a quick ratio of 1.62, a current ratio of 2.13 and a debt-to-equity ratio of 0.52. The company has a market capitalization of $109.98 billion, a price-to-earnings ratio of 23.03, a P/E/G ratio of 2.31 and a beta of 0.55. Medtronic PLC has a 12 month low of $73.31 and a 12 month high of $106.33. The firm has a 50 day moving average of $81.68 and a two-hundred day moving average of $86.68.

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

Medtronic Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, July 17th. Shareholders of record on Friday, June 26th were given a dividend of $0.72 per share. The ex-dividend date of this dividend was 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 3.4%. Medtronic's dividend payout ratio (DPR) is currently 77.21%.

Analyst Upgrades and Downgrades

MDT has been the subject of a number of research reports. Mizuho decreased their target price on shares of Medtronic from $120.00 to $100.00 and set an "outperform" rating for the company in a research note on Wednesday, June 3rd. Jefferies Financial Group reaffirmed a "hold" rating and issued a $88.00 price target on shares of Medtronic in a research note on Thursday, June 4th. Sanford C. Bernstein cut their price objective on Medtronic from $112.00 to $97.00 and set an "outperform" rating for the company in a report on Thursday, June 4th. TD Cowen reduced their price objective on Medtronic from $119.00 to $100.00 and set a "buy" rating for the company in a research report on Friday, July 10th. Finally, Deutsche Bank Aktiengesellschaft lowered their target price on Medtronic from $100.00 to $78.00 and set a "hold" rating on the stock in a research note on Thursday, June 4th. Eighteen equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat, Medtronic currently has a consensus rating of "Moderate Buy" and an average target price of $98.83.

Key Stories Impacting Medtronic

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: Medtronic received an expanded CE Mark indication in Europe for its Affera™ Mapping and Ablation System and Sphere-9™ Catheter to treat ventricular arrhythmias, including ventricular tachycardia and premature ventricular complexes. The approval expands the addressable market for the company’s cardiac-ablation technology and supports its international growth strategy. U.S. pivotal-trial enrollment is also underway. Medtronic announces expanded CE Mark indication for Affera and Sphere-9
• Positive Sentiment: A bullish investment opinion argues that Medtronic’s medical-device portfolio and long-term growth prospects could support substantial appreciation through the end of 2026. This is an analyst-style opinion rather than a new company announcement, so its effect is likely limited. Medtronic could soar by 40 percent
• Neutral Sentiment: Medtronic recently exceeded quarterly revenue and adjusted-EPS expectations, reporting $9.81 billion in revenue and $1.55 in EPS. Revenue increased 9.9% year over year, while full-year fiscal 2027 EPS guidance remains $5.90 to $6.00. These results provide a constructive operating backdrop but do not eliminate litigation concerns.
• Negative Sentiment: A U.S. jury ordered Medtronic to pay $88 million in the first trial involving allegations related to Covidien hernia mesh. Although the award may be manageable relative to Medtronic’s size, the verdict could raise concerns about additional lawsuits, settlement costs and potential reputational damage. Jury says Medtronic owes 88 million dollars in hernia mesh case

Insider Buying and Selling

In other Medtronic news, EVP Harry Skip Kiil sold 4,189 shares of the firm's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $80.44, for a total transaction of $336,963.16. Following the transaction, the executive vice president directly owned 37,227 shares in the company, valued at $2,994,539.88. This trade represents a 10.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.26% of the stock is 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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