Medtronic Target of Unusually Large Options Trading (NYSE:MDT)

Key Points

• Unusual options activity: Medtronic saw heavy put buying on Friday, with investors purchasing 25,075 put options — about 117% above its average daily volume.
• Strong recent business results: The company reported quarterly EPS of $1.55, slightly ahead of estimates, on revenue of $9.81 billion, which was up 9.9% year over year.
• Dividend and analyst outlook: Medtronic raised its quarterly dividend to $0.72 per share, and Wall Street currently rates the stock a Moderate Buy with a consensus price target of $99.00.

Medtronic PLC (NYSE:MDT - Get Free Report) was the target of some unusual options trading on Friday. Investors bought 25,075 put options on the company. This is an increase of approximately 117% compared to the average daily volume of 11,538 put options.

Insider Activity at Medtronic

In other news, EVP Harry Skip Kiil sold 4,189 shares of the firm's stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $80.44, for a total value of $336,963.16. Following the transaction, the executive vice president owned 37,227 shares in the company, valued at $2,994,539.88. This trade represents a 10.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.26% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Artisan Partners Limited Partnership lifted its position in Medtronic by 2.6% during the 3rd quarter. Artisan Partners Limited Partnership now owns 1,234,550 shares of the medical technology company's stock worth $117,579,000 after acquiring an additional 31,314 shares in the last quarter. CSM Advisors LLC raised its stake in shares of Medtronic by 13.2% during the third quarter. CSM Advisors LLC now owns 285,260 shares of the medical technology company's stock valued at $27,169,000 after purchasing an additional 33,167 shares during the period. SageView Advisory Group LLC raised its stake in shares of Medtronic by 164.8% during the third quarter. SageView Advisory Group LLC now owns 24,204 shares of the medical technology company's stock valued at $2,305,000 after purchasing an additional 15,062 shares during the period. Madison Asset Management LLC lifted its position in shares of Medtronic by 15.0% during the fourth quarter. Madison Asset Management LLC now owns 195,216 shares of the medical technology company's stock worth $18,752,000 after purchasing an additional 25,527 shares in the last quarter. Finally, Ticino Wealth purchased a new position in shares of Medtronic in the fourth quarter valued at $2,049,000. 82.06% of the stock is currently owned by institutional investors and hedge funds.

Medtronic Trading Up 0.4%

Shares of NYSE MDT traded up $0.29 during trading on Friday, hitting $80.81. 4,138,763 shares of the company were exchanged, compared to its average volume of 9,327,269. The company has a fifty day moving average price of $79.52 and a 200-day moving average price of $89.80. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.87 and a current ratio of 2.13. The firm has a market capitalization of $103.44 billion, a PE ratio of 21.67, a P/E/G ratio of 2.15 and a beta of 0.58. Medtronic has a 12-month low of $73.31 and a 12-month high of $106.33.

Medtronic (NYSE:MDT - Get Free Report) last announced its quarterly earnings data on Wednesday, June 3rd. The medical technology company reported $1.55 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.54 by $0.01. Medtronic had a net margin of 13.20% and a return on equity of 14.51%. The firm had revenue of $9.81 billion during the quarter, compared to analyst estimates of $9.62 billion. During the same quarter in the prior year, the firm posted $1.62 earnings per share. Medtronic'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. As a group, equities research analysts expect that Medtronic will post 5.94 EPS for the current year.

Medtronic Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, July 17th. Stockholders of record on Friday, June 26th will be issued a dividend of $0.72 per share. The ex-dividend date is Friday, June 26th. This represents a $2.88 dividend on an annualized basis and a dividend yield of 3.6%. This is an increase from Medtronic's previous quarterly dividend of $0.71. Medtronic's payout ratio is 76.14%.

Wall Street Analysts Forecast Growth

MDT has been the topic of a number of research reports. BTIG Research upgraded Medtronic from a "neutral" rating to a "buy" rating and set a $90.00 price objective on the stock in a report on Wednesday, June 3rd. Evercore set a $106.00 target price on shares of Medtronic and gave the company an "outperform" rating in a research report on Thursday, April 9th. Argus decreased their price target on shares of Medtronic from $125.00 to $115.00 and set a "buy" rating on the stock in a research note on Monday, April 6th. Jefferies Financial Group reaffirmed a "hold" rating and set a $88.00 price objective on shares of Medtronic in a research note on Thursday, June 4th. Finally, Wells Fargo & Company decreased their target price on shares of Medtronic from $114.00 to $102.00 and set an "overweight" rating on the stock in a research note on Thursday, June 4th. Seventeen investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $99.00.

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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