Primecap Management Co. CA Lowers Stock Position in Medtronic PLC (NYSE:MDT)

Key Points

• Primecap Management Co. CA reduced its stake in Medtronic PLC by 8.3%, owning 667,105 shares worth approximately $59.95 million after selling 60,080 shares in Q1.
• Medtronic's quarterly earnings surpassed estimates, reporting $1.62 earnings per share and revenue of $8.93 billion, up 3.9% compared to the previous year.
• The company recently increased its quarterly dividend from $0.70 to $0.71, yielding 3.2% annually, with a payout ratio of 78.45%.

Primecap Management Co. CA lessened its stake in Medtronic PLC (NYSE:MDT - Free Report) by 8.3% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 667,105 shares of the medical technology company's stock after selling 60,080 shares during the period. Primecap Management Co. CA owned 0.05% of Medtronic worth $59,946,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in MDT. Vanguard Group Inc. boosted its stake in shares of Medtronic by 0.7% during the first quarter. Vanguard Group Inc. now owns 125,014,241 shares of the medical technology company's stock valued at $11,233,780,000 after purchasing an additional 810,854 shares in the last quarter. Capital Research Global Investors boosted its position in Medtronic by 1.8% during the 4th quarter. Capital Research Global Investors now owns 33,203,685 shares of the medical technology company's stock valued at $2,652,310,000 after acquiring an additional 571,700 shares in the last quarter. Massachusetts Financial Services Co. MA increased its holdings in shares of Medtronic by 7.0% in the 1st quarter. Massachusetts Financial Services Co. MA now owns 22,278,023 shares of the medical technology company's stock valued at $2,001,903,000 after acquiring an additional 1,461,841 shares during the period. Bank of New York Mellon Corp raised its position in shares of Medtronic by 3.8% in the 1st quarter. Bank of New York Mellon Corp now owns 20,680,301 shares of the medical technology company's stock worth $1,858,332,000 after acquiring an additional 756,192 shares in the last quarter. Finally, Deutsche Bank AG lifted its stake in shares of Medtronic by 2.1% during the 4th quarter. Deutsche Bank AG now owns 18,443,640 shares of the medical technology company's stock worth $1,473,278,000 after purchasing an additional 372,168 shares during the last quarter. Institutional investors own 82.06% of the company's stock.

Medtronic Stock Performance

Shares of NYSE:MDT traded up $1.70 during trading on Friday, hitting $92.94. The stock had a trading volume of 6,636,861 shares, compared to its average volume of 6,924,519. The company has a quick ratio of 1.42, a current ratio of 1.85 and a debt-to-equity ratio of 0.53. Medtronic PLC has a 12-month low of $79.29 and a 12-month high of $96.25. The stock has a market capitalization of $119.13 billion, a price-to-earnings ratio of 25.67, a price-to-earnings-growth ratio of 2.37 and a beta of 0.80. The stock has a 50-day simple moving average of $88.65 and a two-hundred day simple moving average of $87.93.

Medtronic (NYSE:MDT - Get Free Report) last announced its quarterly earnings data on Wednesday, May 21st. The medical technology company reported $1.62 EPS for the quarter, beating the consensus estimate of $1.58 by $0.04. The business had revenue of $8.93 billion during the quarter, compared to analysts' expectations of $8.81 billion. Medtronic had a net margin of 13.90% and a return on equity of 14.54%. The business's quarterly revenue was up 3.9% compared to the same quarter last year. During the same period in the previous year, the business posted $1.46 EPS. On average, equities research analysts expect that Medtronic PLC will post 5.46 earnings per share for the current fiscal year.

Medtronic Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 11th. Stockholders of record on Friday, June 27th were issued a $0.71 dividend. This is a boost from Medtronic's previous quarterly dividend of $0.70. The ex-dividend date of this dividend was Friday, June 27th. This represents a $2.84 annualized dividend and a dividend yield of 3.1%. Medtronic's payout ratio is presently 78.45%.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the company. Mizuho lifted their target price on Medtronic from $98.00 to $100.00 and gave the company an "outperform" rating in a research note on Wednesday, July 16th. William Blair upgraded shares of Medtronic to a "hold" rating in a report on Friday, July 11th. Citigroup boosted their price objective on shares of Medtronic from $98.00 to $99.00 and gave the stock a "buy" rating in a research note on Wednesday, July 9th. Leerink Partners began coverage on shares of Medtronic in a research note on Monday, June 16th. They issued an "outperform" rating and a $110.00 target price for the company. Finally, BTIG Research reaffirmed a "neutral" rating on shares of Medtronic in a report on Friday, July 11th. Twelve analysts have rated the stock with a hold rating, nine have issued a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat, Medtronic currently has an average rating of "Moderate Buy" and a consensus price target of $98.19.

About Medtronic

Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Its Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software.