Medtronic (NYSE:MDT) Trading Up 4.1% After Earnings Beat

Key Points

• Medtronic's quarterly earnings surpassed expectations with an EPS of $1.26, exceeding the consensus estimate of $1.23, and revenue of $8.58 billion outpacing analyst predictions of $8.37 billion.
• The company declared a quarterly dividend of $0.71, representing a 3.0% yield, with the ex-dividend date set for September 26th.
• Institutional investors hold approximately 82.06% of Medtronic's stock, indicating strong investment interest in the company.

Shares of Medtronic PLC (NYSE:MDT - Get Free Report) traded up 4.1% on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $94.44 and last traded at $93.61. 2,446,104 shares were traded during trading, a decline of 68% from the average session volume of 7,689,072 shares. The stock had previously closed at $89.90.

The medical technology company reported $1.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.23 by $0.03. Medtronic had a return on equity of 14.54% and a net margin of 13.90%.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 previous year, the firm posted $1.23 EPS. The company's revenue for the quarter was up 7.7% on a year-over-year basis. Medtronic has set its FY 2026 guidance at 5.600-5.660 EPS.

Medtronic Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, October 17th. Investors of record on Friday, September 26th will be issued a $0.71 dividend. This represents a $2.84 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend is Friday, September 26th. Medtronic's payout ratio is presently 78.45%.

Analyst Upgrades and Downgrades

Several research firms have commented on MDT. Royal Bank Of Canada cut their price objective on Medtronic from $105.00 to $101.00 and set an "outperform" rating for the company in a research note on Thursday, May 22nd. BTIG Research reiterated a "neutral" rating on shares of Medtronic in a research report on Friday, July 11th. Citigroup raised their price objective on Medtronic from $98.00 to $99.00 and gave the company a "buy" rating in a report on Wednesday, July 9th. Robert W. Baird lifted their target price on shares of Medtronic from $94.00 to $96.00 and gave the stock a "neutral" rating in a research note on Wednesday. Finally, Wolfe Research raised shares of Medtronic from an "underperform" rating to a "peer perform" rating in a report on Monday, June 30th. Two research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and eleven have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $98.50.

Institutional Trading of Medtronic

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. boosted its holdings in Medtronic by 1.5% during the 2nd quarter. Vanguard Group Inc. now owns 126,909,406 shares of the medical technology company's stock valued at $11,062,693,000 after acquiring an additional 1,895,165 shares during the period. Geode Capital Management LLC lifted its position in shares of Medtronic by 1.1% during the second quarter. Geode Capital Management LLC now owns 28,227,006 shares of the medical technology company's stock worth $2,448,699,000 after purchasing an additional 310,684 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its position in shares of Medtronic by 7.0% during the first quarter. Massachusetts Financial Services Co. MA now owns 22,278,023 shares of the medical technology company's stock worth $2,001,903,000 after purchasing an additional 1,461,841 shares in the last quarter. Bank of New York Mellon Corp boosted its stake in shares of Medtronic by 2.9% in the second quarter. Bank of New York Mellon Corp now owns 21,275,850 shares of the medical technology company's stock valued at $1,854,616,000 after purchasing an additional 595,549 shares during the period. Finally, Deutsche Bank AG grew its holdings in shares of Medtronic by 3.1% in the first quarter. Deutsche Bank AG now owns 19,009,795 shares of the medical technology company's stock valued at $1,708,220,000 after purchasing an additional 566,155 shares in the last quarter. Institutional investors and hedge funds own 82.06% of the company's stock.

Medtronic Stock Up 4.5%

The business's fifty day moving average is $89.47 and its two-hundred day moving average is $87.98. The stock has a market cap of $120.43 billion, a price-to-earnings ratio of 25.94, a PEG ratio of 2.41 and a beta of 0.80. The company has a quick ratio of 1.42, a current ratio of 1.85 and a debt-to-equity ratio of 0.53.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.