Medtronic (NYSE:MDT) Shares Gap Down - Here's What Happened

Key Points

• Medtronic's stock price gapped down from $92.81 to $87.84 before trading, and shares last traded at $88.93, with significant trading volume of over 6.7 million shares.
• Analysts have a mixed outlook on Medtronic, with two ratings of "Strong Buy," nine "Buy," and eleven "Hold," leading to an average rating of "Moderate Buy" and a consensus price target of $98.19.
• The company reported earnings of $1.26 per share for the last quarter, exceeding the consensus estimate, with a revenue increase of 7.7% year-over-year, and announced a quarterly dividend of $0.71 per share.

Shares of Medtronic PLC (NYSE:MDT - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $92.81, but opened at $87.84. Medtronic shares last traded at $88.93, with a volume of 6,766,928 shares traded.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Sanford C. Bernstein lifted their price objective on Medtronic from $97.00 to $98.00 and gave the stock an "outperform" rating in a research report on Wednesday. Leerink Partnrs upgraded shares of Medtronic to a "strong-buy" rating in a research report on Monday, June 16th. Royal Bank Of Canada dropped their target price on shares of Medtronic from $105.00 to $101.00 and set an "outperform" rating for the company in a research report on Thursday, May 22nd. Robert W. Baird upped their target price on shares of Medtronic from $94.00 to $96.00 and gave the company a "neutral" rating in a research report on Wednesday. Finally, Evercore ISI upped their target price on shares of Medtronic from $103.00 to $106.00 and gave the company an "outperform" rating in a research report on Tuesday, July 8th. Two investment analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat.com, Medtronic currently has a consensus rating of "Moderate Buy" and a consensus price target of $101.15.

Medtronic Stock Up 1.7%

The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.42 and a current ratio of 1.85. The firm's 50-day simple moving average is $89.73 and its 200 day simple moving average is $88.03. The company has a market cap of $118.72 billion, a P/E ratio of 25.52, a PEG ratio of 2.31 and a beta of 0.80.

Medtronic (NYSE:MDT - Get Free Report) last released its quarterly earnings data on Tuesday, August 19th. The medical technology company reported $1.26 EPS for the quarter, beating analysts' consensus estimates of $1.23 by $0.03. Medtronic had a net margin of 13.63% and a return on equity of 14.56%. The business had revenue of $8.58 billion during the quarter, compared to analysts' expectations of $8.37 billion. During the same quarter in the prior year, the company earned $1.23 EPS. The firm's quarterly revenue was up 7.7% on a year-over-year basis. Medtronic has set its FY 2026 guidance at 5.600-5.660 EPS. On average, research analysts forecast that Medtronic PLC will post 5.46 earnings per share for the current fiscal year.

Medtronic Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 17th. Investors of record on Friday, September 26th will be given a $0.71 dividend. The ex-dividend date is Friday, September 26th. This represents a $2.84 dividend on an annualized basis and a dividend yield of 3.1%. Medtronic's dividend payout ratio is currently 78.24%.

Institutional Trading of Medtronic

A number of large investors have recently made changes to their positions in the company. 1248 Management LLC bought a new position in Medtronic during the 1st quarter worth about $26,000. Burkett Financial Services LLC increased its holdings in Medtronic by 185.0% during the 1st quarter. Burkett Financial Services LLC now owns 285 shares of the medical technology company's stock worth $26,000 after purchasing an additional 185 shares in the last quarter. Delos Wealth Advisors LLC bought a new position in Medtronic during the 2nd quarter worth about $27,000. Columbia River Financial Group LLC bought a new position in Medtronic during the 1st quarter worth about $28,000. Finally, Twin Tree Management LP bought a new position in Medtronic during the 1st quarter worth about $29,000. Institutional investors own 82.06% of the company's stock.

Medtronic Company Profile

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.