Pzena Investment Management LLC Reduces Stock Holdings in Medtronic PLC $MDT

Key Points

• Pzena Investment Management cut its Medtronic stake by 45.7% in the fourth quarter, selling about 2.71 million shares and ending with 3.22 million shares worth roughly $309.2 million.
• Medtronic is drawing mixed analyst sentiment: several firms recently downgraded or lowered price targets, while the overall consensus remains Moderate Buy with an average target price of $106.45.
• The biggest recent company news is Medtronic’s planned $650 million acquisition of SPR Therapeutics, which is intended to expand its chronic pain and neuromodulation portfolio, though some market commentary has raised concerns about deal costs and execution risk.

Pzena Investment Management LLC trimmed its position in Medtronic PLC (NYSE:MDT - Free Report) by 45.7% during the 4th quarter, according to its most recent Form 13F filing with the SEC. The fund owned 3,218,852 shares of the medical technology company's stock after selling 2,709,234 shares during the period. Pzena Investment Management LLC owned about 0.25% of Medtronic worth $309,203,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also bought and sold shares of the company. Lodestone Wealth Management LLC purchased a new position in Medtronic in the fourth quarter worth about $27,000. Anfield Capital Management LLC boosted its position in Medtronic by 410.7% in 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 last quarter. Valley Wealth Managers Inc. purchased a new position in Medtronic in the third quarter worth about $29,000. Board of the Pension Protection Fund bought a new position in shares of Medtronic in the fourth quarter worth about $29,000. Finally, GoalVest Advisory LLC bought a new position in shares of Medtronic in the fourth quarter worth about $29,000. 82.06% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Truist Financial decreased their price objective on Medtronic from $103.00 to $95.00 and set a "hold" rating on the stock in a research note on Wednesday, April 15th. Weiss Ratings downgraded Medtronic from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, April 21st. The Goldman Sachs Group set a $84.00 price objective on Medtronic and gave the stock a "neutral" rating in a research note on Thursday. Daiwa Securities Group decreased their price objective on Medtronic from $117.00 to $115.00 and set a "buy" rating on the stock in a research note on Friday, February 27th. Finally, Wall Street Zen downgraded Medtronic from a "buy" rating to a "hold" rating in a research note on Saturday, April 11th. Fifteen analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $106.45.

Key Medtronic News

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: Medtronic said the SPR Therapeutics purchase will strengthen its neuromodulation portfolio by adding temporary peripheral nerve stimulation technology for chronic pain, a move that could support longer-term growth and broaden its treatment offerings. PR Newswire article
• Positive Sentiment: Reuters reported that the deal expands Medtronic’s portfolio of treatments for chronic pain, reinforcing the company’s strategy to grow in higher-value medical device categories. Reuters article
• Neutral Sentiment: Piper Sandler maintained its Hold rating on Medtronic, suggesting analysts are not yet signaling a major re-rating from the news. The Globe and Mail article
• Neutral Sentiment: Healthcare stocks were mixed in afternoon trading, so broader sector movement does not appear to be the main driver of Medtronic’s move. Yahoo Finance sector update
• Negative Sentiment: Some market commentary framed the SPR deal as a reason for MDT’s stock to slide, likely reflecting concern about acquisition costs and execution risk. Blockonomi article

Medtronic Stock Performance

NYSE MDT opened at $78.11 on Friday. The stock has a market capitalization of $100.29 billion, a PE ratio of 21.76, a P/E/G ratio of 1.86 and a beta of 0.62. The business has a 50 day simple moving average of $83.71 and a two-hundred day simple moving average of $93.25. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.54 and a quick ratio of 1.87. Medtronic PLC has a 1-year low of $74.40 and a 1-year high of $106.33.

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

Medtronic Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, April 17th. Shareholders of record on Friday, March 27th were issued a dividend of $0.71 per share. This represents a $2.84 annualized dividend and a yield of 3.6%. The ex-dividend date was Friday, March 27th. Medtronic's dividend payout ratio (DPR) is currently 79.11%.

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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