Medtronic PLC (NYSE:MDT) Sees Significant Increase in Short Interest

Key Points

• Medtronic’s short interest surged 247.7% to 139.0 million shares as of October 15, representing approximately 10.9% of shares outstanding and 2.9 days to cover.
• The stock traded around $94.70, while the company reported quarterly EPS of $1.45 and revenue of $9.76 billion, exceeding analyst expectations; revenue rose 13.7% year over year.
• Medtronic pays a quarterly dividend of $0.72 per share, equivalent to a 3.0% annual yield. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $102.88.

Medtronic PLC (NYSE:MDT - Get Free Report) was the recipient of a large increase in short interest during the month of October. As of October 15th, there was short interest totaling 139,004,337 shares, an increase of 247.7% from the September 30th total of 39,974,230 shares. Based on an average daily volume of 47,498,393 shares, the days-to-cover ratio is presently 2.9 days. Approximately 10.9% of the shares of the stock are short sold.

Medtronic Trading Up 0.8%

Shares of NYSE MDT traded up $0.75 during midday trading on Wednesday, reaching $94.70. 9,576,742 shares of the stock were exchanged, compared to its average volume of 11,391,698. Medtronic has a 12 month low of $73.31 and a 12 month high of $106.33. The company has a market capitalization of $121.14 billion, a price-to-earnings ratio of 23.33, a P/E/G ratio of 2.23 and a beta of 0.55. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.07 and a quick ratio of 1.54. The business has a 50-day simple moving average of $91.56 and a two-hundred day simple moving average of $88.35.

Medtronic (NYSE:MDT - Get Free Report) last released its quarterly earnings data on Tuesday, September 1st. The medical technology company reported $1.45 EPS for the quarter, beating analysts' consensus estimates of $1.39 by $0.06. The business had revenue of $9.76 billion during the quarter, compared to analysts' expectations of $9.55 billion. Medtronic had a net margin of 13.93% and a return on equity of 14.78%. The firm's quarterly revenue was up 13.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.26 EPS. Medtronic has set its Q2 2027 guidance at 1.320-1.340 EPS and its FY 2027 guidance at 5.940-6.000 EPS. As a group, equities research analysts expect that Medtronic will post 5.98 EPS for the current year.

Medtronic Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, October 16th. Investors of record on Friday, September 25th were paid a dividend of $0.72 per share. This represents a $2.88 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date of this dividend was Friday, September 25th. Medtronic's dividend payout ratio is presently 70.94%.

Insiders Place Their Bets

In related news, EVP Harry Kiil sold 1,483 shares of Medtronic stock in a transaction dated Wednesday, September 16th. The stock was 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 directly owned 42,186 shares of the company's stock, valued at $3,950,718.90. The trade was a 3.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Michael Marinaro sold 10,420 shares of Medtronic stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $96.00, for a total value of $1,000,320.00. Following the completion of the transaction, the executive vice president directly owned 105,916 shares of the company's stock, valued at $10,167,936. This represents a 8.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 61,903 shares of company stock valued at $5,889,203. 0.27% of the stock is currently owned by corporate insiders.

Institutional Trading of Medtronic

Several hedge funds have recently bought and sold shares of the stock. Activest Wealth Management boosted its stake in Medtronic by 470.9% in the 3rd quarter. Activest Wealth Management now owns 314 shares of the medical technology company's stock worth $27,000 after purchasing an additional 259 shares during the period. IAG Wealth Partners LLC bought a new stake in shares of Medtronic in the second quarter valued at about $30,000. Pin Oak Investment Advisors Inc. bought a new stake in shares of Medtronic in the second quarter valued at about $32,000. Community Bank N.A. bought a new stake in shares of Medtronic in the second quarter valued at about $33,000. Finally, Core Capital Management & Research inc. acquired a new position in shares of Medtronic during the second quarter worth about $33,000. 82.06% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities analysts have issued reports on the stock. Stifel Nicolaus raised their price objective on shares of Medtronic from $80.00 to $95.00 and gave the company a "hold" rating in a research note on Wednesday, September 2nd. Truist Financial reissued a "hold" rating and issued a $99.00 price target (up from $86.00) on shares of Medtronic in a research note on Wednesday, September 2nd. Robert W. Baird raised their price target on Medtronic from $91.00 to $100.00 and gave the stock a "neutral" rating in a research report on Wednesday, September 2nd. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $92.00 price objective on shares of Medtronic in a research note on Thursday, September 3rd. Finally, Piper Sandler reiterated a "neutral" rating on shares of Medtronic in a report on Wednesday, October 14th. Eighteen analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $102.88.

About Medtronic

Medtronic plc NYSE: MDT is a global medical technology company that develops, manufactures and distributes devices and therapies used to diagnose, treat and manage a broad range of medical conditions. Its products support healthcare providers in areas including cardiac and vascular care, diabetes, neuroscience, surgical procedures and patient monitoring.

The company's offerings include pacemakers, implantable defibrillators, heart valves and other structural heart products; insulin pumps and continuous glucose monitoring technologies; spinal and neurosurgical systems; deep-brain and spinal cord stimulation devices; surgical instruments and robotic-assisted technologies; and respiratory and patient-monitoring equipment.

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