Medtronic (NYSE:MDT) Stock Price Down 5.2% - Here's Why

Key Points

• Medtronic shares fell 5.2% on Tuesday, trading as low as $78.97 and finishing well below the prior close of $83.57 amid lighter-than-average volume.
• Despite the stock drop, recent earnings were solid: Medtronic beat Wall Street estimates with $1.55 EPS and $9.81 billion in revenue, while revenue rose 9.9% year over year.
• The company also raised its quarterly dividend to $0.72 per share, and analysts remain generally positive with a consensus Moderate Buy rating and average price target of $98.21.

Medtronic PLC (NYSE:MDT - Get Free Report) shares traded down 5.2% on Tuesday . The company traded as low as $78.97 and last traded at $79.2330. 2,674,931 shares changed hands during mid-day trading, a decline of 71% from the average session volume of 9,229,465 shares. The stock had previously closed at $83.57.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Royal Bank Of Canada reiterated an "outperform" rating and set a $118.00 price target on shares of Medtronic in a research report on Thursday, June 4th. Truist Financial cut their price objective on Medtronic from $95.00 to $86.00 and set a "hold" rating for the company in a report on Thursday, June 4th. JPMorgan Chase & Co. lowered their target price on Medtronic from $100.00 to $86.00 and set a "neutral" rating on the stock in a report on Thursday, June 4th. Citigroup dropped their price target on shares of Medtronic from $117.00 to $110.00 and set a "buy" rating on the stock in a research report on Tuesday, April 7th. Finally, Evercore set a $105.00 price target on shares of Medtronic in a report on Monday, July 6th. Seventeen research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat.com, Medtronic has an average rating of "Moderate Buy" and a consensus price target of $98.21.

Medtronic Price Performance

The company has a fifty day simple moving average of $79.16 and a 200-day simple moving average of $88.36. The company has a market cap of $102.21 billion, a P/E ratio of 21.43, a PEG ratio of 2.25 and a beta of 0.56. The company has a debt-to-equity ratio of 0.52, a current ratio of 2.13 and a quick ratio of 1.62.

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

Medtronic Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, July 17th. Shareholders of record on Friday, June 26th will be issued a $0.72 dividend. The ex-dividend date is 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 dividend yield of 3.6%. Medtronic's dividend payout ratio is 77.21%.

Insider Buying and Selling at Medtronic

In other news, EVP Harry Skip Kiil sold 4,189 shares of the business's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $80.44, for a total transaction of $336,963.16. Following the sale, the executive vice president owned 37,227 shares in the company, valued at $2,994,539.88. The trade was a 10.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.26% of the stock is currently owned by company insiders.

Institutional Trading of Medtronic

Several large investors have recently added to or reduced their stakes in the company. Madison Asset Management LLC grew its stake in Medtronic by 15.0% in the fourth quarter. Madison Asset Management LLC now owns 195,216 shares of the medical technology company's stock valued at $18,752,000 after purchasing an additional 25,527 shares in the last quarter. Ticino Wealth purchased a new stake in shares of Medtronic during the 4th quarter worth about $2,049,000. First Eagle Investment Management LLC raised its stake in shares of Medtronic by 0.4% during the 4th quarter. First Eagle Investment Management LLC now owns 9,775,234 shares of the medical technology company's stock worth $939,009,000 after purchasing an additional 40,196 shares in the last quarter. KBC Group NV lifted its holdings in shares of Medtronic by 5.2% during the 4th quarter. KBC Group NV now owns 430,508 shares of the medical technology company's stock valued at $41,354,000 after buying an additional 21,384 shares during the last quarter. Finally, Kimelman & Baird LLC lifted its holdings in shares of Medtronic by 21.6% during the 3rd quarter. Kimelman & Baird LLC now owns 168,969 shares of the medical technology company's stock valued at $16,093,000 after buying an additional 29,978 shares during the last quarter. 82.06% of the stock is owned by institutional investors and hedge funds.

About Medtronic

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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