Medtronic (NYSE:MDT) Shares Climb 4.1% - Should You Buy?

Key Points

• Medtronic shares rose 4.1% to about $92.09 after the company’s MiniMed exchange offer was oversubscribed, supporting its plan to separate the diabetes business and focus on its remaining medical-device operations.
• The company’s latest quarterly results exceeded expectations, with EPS of $1.45 versus the $1.39 consensus and revenue of $9.76 billion versus $9.55 billion expected; revenue increased 13.7% year over year.
• Analysts maintain a generally positive outlook: Medtronic has a “Moderate Buy” consensus rating and an average price target of $102.88, while the company also offers a 3.1% dividend yield.

Medtronic PLC (NYSE:MDT - Get Free Report) shares traded up 4.1% on Monday. The company traded as high as $92.20 and last traded at $92.0870. 4,228,935 shares were traded during trading, a decline of 60% from the average daily volume of 10,672,499 shares. The stock had previously closed at $88.48.

Medtronic News Roundup

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: Medtronic reported that its exchange offer for MiniMed Group shares was oversubscribed before expiring October 9. The strong participation supports investor interest in the separation of Medtronic’s diabetes business and may reinforce the company’s strategy of focusing on its remaining medical-device operations. Final results and the exchange ratio are still pending. Medtronic Announces Preliminary Results of MiniMed Group, Inc. Exchange Offer
• Positive Sentiment: Recent analysis argues that Medtronic’s underperformance relative to the broader market has created an attractive valuation, while an improving growth outlook could provide support. The stock’s modest valuation and recent earnings beat—$1.45 in quarterly EPS versus the $1.39 consensus—add to the recovery case. Medtronic’s Modest Valuation Meets an Improving Growth Outlook
• Neutral Sentiment: BTIG Research lowered its Medtronic price target from $100 to $99 but maintained a Buy rating. The revised target still implies meaningful upside from shares trading near $91, although the reduction signals slightly less near-term optimism. Medtronic Price Target Cut to $99.00 by Analysts at BTIG Research
• Neutral Sentiment: Jim Cramer said he remains positive on Medtronic but unfavorable toward MiniMed. His comments may draw attention to the transaction, but they are opinion-based and do not change Medtronic’s fundamentals. Jim Cramer Has Very Different Views on MiniMed and Medtronic

Wall Street Analyst Weigh In

MDT has been the subject of several recent research reports. Evercore set a $105.00 price target on Medtronic in a research note on Monday, July 6th. Barclays upgraded Medtronic to a "hold" rating in a report on Wednesday, October 7th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $118.00 price objective on shares of Medtronic in a research report on Wednesday, September 2nd. Truist Financial reiterated 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. Finally, Bank of America lifted their target price on shares of Medtronic from $95.00 to $110.00 and gave the company a "buy" rating in a research note on Wednesday, September 2nd. Eighteen equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, Medtronic has a consensus rating of "Moderate Buy" and a consensus target price of $102.88.

Medtronic Price Performance

The company's 50-day simple moving average is $90.28 and its 200 day simple moving average is $84.77. The company has a quick ratio of 1.54, a current ratio of 2.07 and a debt-to-equity ratio of 0.50. The stock has a market capitalization of $117.04 billion, a price-to-earnings ratio of 22.49, a P/E/G ratio of 2.02 and a beta of 0.55.

Medtronic (NYSE:MDT - Get Free Report) last announced its quarterly earnings results 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. The company had revenue of $9.76 billion during the quarter, compared to analysts' expectations of $9.55 billion. Medtronic had a return on equity of 14.78% and a net margin of 13.93%. The business's quarterly revenue was up 13.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $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 research analysts forecast that Medtronic PLC 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 paid a $0.72 dividend. This represents a $2.88 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend is Friday, September 25th. Medtronic's dividend payout ratio (DPR) is presently 70.94%.

Insiders Place Their Bets

In related news, EVP Harry Kiil sold 1,483 shares of the business's stock in a transaction that occurred on 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 sale, the executive vice president directly owned 42,186 shares in the company, valued at approximately $3,950,718.90. The trade was a 3.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.27% of the company's stock.

Hedge Funds Weigh In On Medtronic

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MDT. Monetary Solutions Ltd acquired a new stake in shares of Medtronic in the fourth quarter worth $27,000. IAG Wealth Partners LLC acquired a new position in Medtronic during the 2nd quarter valued at $30,000. Pin Oak Investment Advisors Inc. acquired a new position in Medtronic during the 2nd quarter valued at $32,000. Community Bank N.A. bought a new stake in Medtronic in the 2nd quarter valued at $33,000. Finally, Core Capital Management & Research inc. bought a new stake in Medtronic in the 2nd quarter valued at $33,000. Institutional investors and hedge funds own 82.06% of the company's stock.

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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