Medtronic (NYSE:MDT) Stock Sees Heavy Call Option Buying

Key Points

• Medtronic saw unusually heavy call-option activity: Investors bought 29,587 call options, 82% above the typical volume of 16,301.
• Shares fell $2.34 to $87.16 amid trading volume more than twice the average. The company recently exceeded quarterly earnings and revenue expectations, with revenue up 13.7% year over year.
• Analysts maintain a broadly positive outlook, with a consensus “Moderate Buy” rating and a $103.92 price target. Medtronic also announced a quarterly dividend of $0.72 per share, representing a 3.3% yield.

Medtronic PLC (NYSE:MDT - Get Free Report) saw unusually large options trading on Tuesday. Stock investors bought 29,587 call options on the company. This represents an increase of 82% compared to the typical volume of 16,301 call options.

Medtronic Price Performance

Medtronic stock traded down $2.34 on Tuesday, reaching $87.16. The company's stock had a trading volume of 19,412,408 shares, compared to its average volume of 9,090,206. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.54 and a current ratio of 2.07. The company has a market cap of $111.49 billion, a price-to-earnings ratio of 21.47, a PEG ratio of 2.02 and a beta of 0.56. The business's fifty day moving average price is $89.81 and its 200 day moving average price is $84.80. Medtronic has a twelve month low of $73.31 and a twelve month high of $106.33.

Medtronic (NYSE:MDT - Get Free Report) last announced its earnings results on Tuesday, September 1st. The medical technology company reported $1.45 earnings per share for the quarter, beating analysts' consensus estimates of $1.39 by $0.06. The company had revenue of $9.76 billion during the quarter, compared to analyst estimates of $9.55 billion. Medtronic had a return on equity of 14.78% and a net margin of 13.93%.The firm's quarterly revenue was up 13.7% compared to the same quarter last year. During the same period last year, the company posted $1.26 earnings per share. Medtronic has set its Q2 2027 guidance at 1.320-1.340 EPS and its FY 2027 guidance at 5.940-6.000 EPS. Equities analysts expect that Medtronic will post 5.98 earnings per share for the current fiscal year.

Medtronic Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 16th. Stockholders of record on Friday, September 25th will be given a dividend of $0.72 per share. This represents a $2.88 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date is Friday, September 25th. Medtronic's dividend payout ratio is presently 70.94%.

Insider Buying and Selling

In other news, EVP Harry Kiil sold 1,483 shares of the stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $93.65, for a total value of $138,882.95. Following the completion of the transaction, the executive vice president owned 42,186 shares in the company, valued at approximately $3,950,718.90. This represents a 3.40% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.27% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Envestnet Portfolio Solutions Inc. increased its stake in shares of Medtronic by 17.4% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 73,993 shares of the medical technology company's stock valued at $5,788,000 after buying an additional 10,960 shares during the period. State Street Corp raised its holdings in Medtronic by 2.7% during the 2nd quarter. State Street Corp now owns 63,399,315 shares of the medical technology company's stock worth $5,005,320,000 after purchasing an additional 1,658,301 shares during the last quarter. Security National Bank of Sioux City Iowa IA acquired a new position in Medtronic during the 2nd quarter valued at about $48,000. Wellington Altus USA Inc. boosted its stake in shares of Medtronic by 18.1% in the 2nd quarter. Wellington Altus USA Inc. now owns 2,294 shares of the medical technology company's stock valued at $199,000 after purchasing an additional 351 shares during the last quarter. Finally, Bullseye Investment Management LLC acquired a new stake in shares of Medtronic during the 2nd quarter worth approximately $45,000. Institutional investors and hedge funds own 82.06% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Wells Fargo & Company increased their target price on Medtronic from $102.00 to $104.00 and gave the stock an "overweight" rating in a report on Wednesday, September 2nd. Rothschild & Co Redburn lowered their price target on Medtronic from $111.00 to $106.00 and set a "buy" rating on the stock in a research report on Friday, June 5th. Weiss Ratings upgraded Medtronic from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, September 4th. Bank of America lifted their price objective on Medtronic from $95.00 to $110.00 and gave the company a "buy" rating in a report on Wednesday, September 2nd. Finally, Truist Financial restated a "hold" rating and issued a $99.00 target price (up from $86.00) on shares of Medtronic in a research note on Wednesday, September 2nd. Nineteen equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $103.92.

Medtronic Company Profile

Medtronic plc is a global medical technology company that develops and manufactures devices, therapies and healthcare solutions for treating chronic and acute conditions. Its products are used in areas including cardiac and vascular care, neuroscience, medical and surgical procedures, and diabetes management.

The company's portfolio includes pacemakers, implantable cardioverter-defibrillators, cardiac ablation systems, stents and other cardiovascular products; neuromodulation systems, deep-brain stimulation devices and spinal technologies; surgical instruments, robotic-assisted surgery systems and gastrointestinal diagnostic tools; and insulin pumps and related diabetes technologies.

Medtronic traces its origins to 1949, when Earl Bakken and Palmer Hermundslie founded the company in Minneapolis, Minnesota.

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