Medtronic PLC (NYSE:MDT) Shares Shorted: Short Interest Up 132.0% in September

Key Points

• Medtronic’s short interest surged 132% in September to nearly 40.0 million shares, representing 3.1% of shares outstanding and a days-to-cover ratio of 2.7.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $102.88, above the reported share price of $91.61.
• Medtronic exceeded quarterly expectations with $1.45 in EPS and $9.76 billion in revenue, while declaring a quarterly dividend of $0.72 per share, equivalent to a 3.1% annualized yield.

Medtronic PLC (NYSE:MDT - Get Free Report) was the recipient of a large increase in short interest during the month of September. As of September 30th, there was short interest totaling 39,974,230 shares, an increase of 132.0% from the September 15th total of 17,229,743 shares. Currently, 3.1% of the company's shares are sold short. Based on an average trading volume of 14,671,374 shares, the days-to-cover ratio is presently 2.7 days.

Insider Buying and Selling

In other Medtronic news, EVP Harry Kiil sold 1,483 shares of the business's stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $93.65, for a total value of $138,882.95. Following the transaction, the executive vice president directly owned 42,186 shares in the company, valued at $3,950,718.90. The trade was a 3.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.27% of the stock is owned by company insiders.

Institutional Trading of Medtronic

A number of institutional investors have recently bought and sold shares of the company. BlackRock Inc. raised its holdings in shares of Medtronic by 0.7% in the second quarter. BlackRock Inc. now owns 114,020,787 shares of the medical technology company's stock worth $8,919,846,000 after acquiring an additional 838,220 shares during the last quarter. State Street Corp grew its position in shares of Medtronic by 2.7% in the second quarter. State Street Corp now owns 63,399,315 shares of the medical technology company's stock valued at $5,005,320,000 after purchasing an additional 1,658,301 shares during the period. Bank of America Corp DE grew its position in shares of Medtronic by 5.4% in the first quarter. Bank of America Corp DE now owns 26,015,003 shares of the medical technology company's stock valued at $2,254,200,000 after purchasing an additional 1,343,220 shares during the period. First Eagle Investment Management LLC lifted its position in Medtronic by 37.2% during the second quarter. First Eagle Investment Management LLC now owns 13,783,983 shares of the medical technology company's stock worth $1,078,321,000 after buying an additional 3,739,288 shares during the period. Finally, WCM Investment Management LLC purchased a new stake in Medtronic in the 1st quarter valued at about $965,922,000. 82.06% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on MDT shares. Weiss Ratings upgraded Medtronic from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, September 4th. Stifel Nicolaus increased their price target on Medtronic from $80.00 to $95.00 and gave the company a "hold" rating in a research report on Wednesday, September 2nd. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $92.00 target price on shares of Medtronic in a report on Thursday, September 3rd. Truist Financial reissued a "hold" rating and issued a $99.00 target price (up from $86.00) on shares of Medtronic in a report on Wednesday, September 2nd. Finally, BTIG Research dropped their price objective on Medtronic from $100.00 to $99.00 and set a "buy" rating on the stock in a report on Monday. Eighteen research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat.com, Medtronic currently has a consensus rating of "Moderate Buy" and a consensus target price of $102.88.

Medtronic Price Performance

Shares of NYSE:MDT opened at $91.61 on Tuesday. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.54 and a current ratio of 2.07. Medtronic has a one year low of $73.31 and a one year high of $106.33. The company has a 50-day simple moving average of $90.38 and a 200-day simple moving average of $84.80. The stock has a market capitalization of $117.18 billion, a price-to-earnings ratio of 22.56, a PEG ratio of 2.02 and a beta of 0.55.

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

Medtronic Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Investors of record on Friday, September 25th will be issued a dividend of $0.72 per share. The ex-dividend date of this dividend is Friday, September 25th. This represents a $2.88 dividend on an annualized basis and a yield of 3.1%. Medtronic's payout ratio is currently 70.94%.

Medtronic News Summary

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: Medtronic said its exchange offer for MiniMed Group shares was oversubscribed. The company plans to exchange all of its remaining 252.8 million MiniMed shares for outstanding Medtronic ordinary shares, completing the disposition of its remaining MiniMed stake. The transaction may simplify Medtronic’s portfolio and reduce exposure to the slower-growth diabetes business. Medtronic Announces Preliminary Results of MiniMed Group Exchange Offer
• Positive Sentiment: An investment commentary argued that Medtronic’s underperformance over the past year has left the stock at a modest valuation while its growth outlook is improving. This supports the view that the shares may offer value if operating momentum continues. Medtronic’s Modest Valuation Meets an Improving Growth Outlook
• Neutral Sentiment: BTIG Research lowered its price target to $99 from $100 but maintained a Buy rating, implying continued upside based on its valuation assessment. The reduced target is a modest negative, while the retained Buy rating is supportive. Medtronic Price Target Cut by BTIG Research
• Neutral Sentiment: Jim Cramer expressed a favorable view of Medtronic but criticized MiniMed, reinforcing the market’s potential preference for Medtronic after the separation. However, the comments are opinion-based and are unlikely to materially affect fundamentals. Jim Cramer’s Views on MiniMed and Medtronic

About Medtronic

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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