Medtronic (NYSE:MDT) Reaches New 12-Month Low - Here's What Happened

Key Points

• Medtronic shares hit a new 52-week low on Monday, falling to as low as $75.60 and ending the session down about 1.6%. The stock is trading well below its 50-day and 200-day moving averages.
• Despite the recent weakness, analysts remain cautiously positive: Medtronic has a consensus rating of “Moderate Buy” with an average price target of $107.80. Recent firms including Leerink Partners, Needham, Piper Sandler, Citigroup, and JPMorgan adjusted their ratings or targets.
• The company’s latest results were solid, with earnings and revenue both beating expectations in its most recent quarter. Medtronic also pays a quarterly dividend, yielding about 3.8% annualized, though an executive recently sold a large block of shares.

Medtronic PLC (NYSE:MDT - Get Free Report) shares hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $75.60 and last traded at $75.8130, with a volume of 419113 shares changing hands. The stock had previously closed at $76.15.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on MDT shares. Leerink Partners restated an "outperform" rating and issued a $119.00 price objective on shares of Medtronic in a report on Tuesday, March 10th. Needham & Company LLC reaffirmed a "buy" rating and issued a $120.00 price objective on shares of Medtronic in a research note on Thursday, March 26th. Piper Sandler reduced their price objective on Medtronic from $105.00 to $91.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 1st. Citigroup reduced their price objective on Medtronic from $117.00 to $110.00 and set a "buy" rating on the stock in a research note on Tuesday, April 7th. Finally, JPMorgan Chase & Co. reduced their price objective on Medtronic from $105.00 to $100.00 and set a "neutral" rating on the stock in a research note on Wednesday, February 18th. Fifteen research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $107.80.

Medtronic Stock Down 1.6%

The firm has a 50-day moving average of $87.26 and a 200 day moving average of $94.43. The stock has a market capitalization of $96.18 billion, a price-to-earnings ratio of 20.87, a price-to-earnings-growth ratio of 1.81 and a beta of 0.62. The company has a current ratio of 2.54, a quick ratio of 1.87 and a debt-to-equity ratio of 0.57.

Medtronic (NYSE:MDT - Get Free Report) last posted its quarterly earnings results on Tuesday, February 17th. The medical technology company reported $1.36 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.34 by $0.02. Medtronic had a net margin of 13.00% and a return on equity of 14.82%. The firm had revenue of $9.02 billion for the quarter, compared to analysts' expectations of $8.89 billion. During the same period in the prior year, the company posted $1.38 earnings per share. The firm's quarterly revenue was up 5.8% on a year-over-year basis. Medtronic has set its FY 2026 guidance at 5.620-5.660 EPS. On average, sell-side analysts anticipate that Medtronic PLC will post 5.57 earnings per share for the current year.

Medtronic Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, April 17th. Stockholders of record on Friday, March 27th were paid a dividend of $0.71 per share. The ex-dividend date of this dividend was Friday, March 27th. This represents a $2.84 dividend on an annualized basis and a dividend yield of 3.8%. Medtronic's dividend payout ratio (DPR) is 79.11%.

Insider Buying and Selling at Medtronic

In other news, EVP Harry Skip Kiil sold 52,524 shares of the firm's stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $97.71, for a total transaction of $5,132,120.04. Following the completion of the sale, the executive vice president directly owned 32,768 shares of the company's stock, valued at $3,201,761.28. This trade represents a 61.58% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 0.26% of the stock is owned by company insiders.

Institutional Investors Weigh In On Medtronic

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. PNC Financial Services Group Inc. increased its holdings in shares of Medtronic by 2.7% during the 1st quarter. PNC Financial Services Group Inc. now owns 658,800 shares of the medical technology company's stock valued at $57,085,000 after acquiring an additional 17,089 shares during the last quarter. Oslo Pensjonsforsikring AS acquired a new stake in shares of Medtronic during the 1st quarter worth approximately $497,000. Madison Asset Management LLC grew its holdings in shares of Medtronic by 25.0% during the 1st quarter. Madison Asset Management LLC now owns 244,000 shares of the medical technology company's stock worth $21,143,000 after purchasing an additional 48,784 shares in the last quarter. Convergence Investment Partners LLC grew its holdings in shares of Medtronic by 82.8% during the 1st quarter. Convergence Investment Partners LLC now owns 46,789 shares of the medical technology company's stock worth $4,054,000 after purchasing an additional 21,196 shares in the last quarter. Finally, Commerzbank Aktiengesellschaft FI grew its holdings in shares of Medtronic by 9.0% during the 1st quarter. Commerzbank Aktiengesellschaft FI now owns 46,929 shares of the medical technology company's stock worth $4,066,000 after purchasing an additional 3,879 shares in the last quarter. 82.06% of the stock is owned by hedge funds and other institutional investors.

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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