Stock Traders Buy High Volume of Medtronic Call Options (NYSE:MDT)

Key Points

• Medtronic call-option activity surged: Traders bought 19,654 call options, about 56% above the average volume, signaling heightened interest in potential upside.
• The turnaround outlook is improving but remains uncertain. UBS upgraded Medtronic to Buy, while analysts cited new products, stronger execution, and growth opportunities such as pulsed-field ablation; however, concerns persist about slower growth and execution versus peers.
• Financial performance and shareholder returns remain supportive. Quarterly revenue rose 9.9% to $9.81 billion, EPS exceeded estimates, and the quarterly dividend increased to $0.72, producing a 3.2% yield; analysts’ consensus rating is Moderate Buy with an average $98.83 price target.

Medtronic PLC (NYSE:MDT - Get Free Report) was the target of some unusual options trading activity on Tuesday. Traders bought 19,654 call options on the company. This represents an increase of approximately 56% compared to the average volume of 12,590 call options.

Trending Headlines about Medtronic

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: UBS upgraded Medtronic to Buy from Neutral, describing a potential turnaround underway after years of underperformance. The upgrade supports the view that new products, improving execution, and stabilizing growth could drive further gains. Is Medtronic Becoming a Turnaround Story?
• Positive Sentiment: Medtronic is positioned in the fast-growing pulsed-field ablation market, which ResearchAndMarkets projects will expand from approximately $3.2 billion in 2026 to $14.6 billion by 2035. Participation in this market could provide a meaningful long-term growth opportunity for the company’s cardiac portfolio. Pulsed Field Ablation Global Market Report 2026
• Positive Sentiment: The company continues to benefit from a solid financial profile and dividend appeal. Recent commentary characterized Medtronic as an undervalued Dividend Aristocrat, while its latest quarter included $9.81 billion in revenue, up 9.9% year over year, and EPS of $1.55 versus a $1.54 consensus estimate. Medtronic: Buy This Undervalued Dividend Aristocrat
• Neutral Sentiment: A collaboration with Orchestra BioMed remains on track. The BACKBEAT pivotal trial, conducted with Medtronic, is expected to reach its enrollment target by the end of the third quarter of 2026, with primary data targeted for the second quarter of 2027. The program could create future value, but meaningful clinical and commercial milestones remain ahead. Orchestra BioMed Reports Second Quarter 2026 Results
• Negative Sentiment: Investors remain cautious about whether Medtronic’s turnaround can deliver sustainable growth. Comparisons with faster-growing peers such as Abbott and Johnson & Johnson highlight ongoing concerns about execution, procedure volumes, and the company’s slower historical growth. The stock’s valuation and 2027 EPS guidance will likely remain under scrutiny. Abbott vs. Medtronic

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on MDT. Needham & Company LLC restated a "buy" rating and issued a $101.00 price objective on shares of Medtronic in a report on Wednesday, June 17th. BTIG Research reaffirmed a "buy" rating and set a $91.00 target price on shares of Medtronic in a report on Monday, July 13th. Truist Financial dropped their price target on shares of Medtronic from $95.00 to $86.00 and set a "hold" rating on the stock in a research report on Thursday, June 4th. Wall Street Zen raised shares of Medtronic from a "hold" rating to a "buy" rating in a report on Saturday, July 18th. Finally, Leerink Partners reduced their price objective on shares of Medtronic from $117.00 to $104.00 and set an "outperform" rating for the company in a research report on Thursday, June 4th. Eighteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to data from MarketBeat.com, Medtronic presently has a consensus rating of "Moderate Buy" and an average target price of $98.83.

Insider Buying and Selling

In other Medtronic news, EVP Harry Skip Kiil sold 4,189 shares of the company'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 completion of the sale, the executive vice president directly owned 37,227 shares in the company, valued at $2,994,539.88. This represents a 10.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.26% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Anfield Capital Management LLC grew its stake in Medtronic by 410.7% during the 4th quarter. Anfield Capital Management LLC now owns 286 shares of the medical technology company's stock valued at $27,000 after acquiring an additional 230 shares in the last quarter. Monetary Solutions Ltd purchased a new stake in shares of Medtronic in the fourth quarter worth approximately $27,000. Acumen Wealth Advisors LLC purchased a new stake in shares of Medtronic in the fourth quarter worth approximately $29,000. IAG Wealth Partners LLC acquired a new stake in shares of Medtronic during the second quarter worth approximately $30,000. Finally, Imprint Wealth LLC acquired a new stake in shares of Medtronic during the third quarter worth approximately $31,000. Hedge funds and other institutional investors own 82.06% of the company's stock.

Medtronic Trading Up 0.4%

MDT stock traded up $0.36 during mid-day trading on Tuesday, reaching $89.77. 1,506,073 shares of the stock traded hands, compared to its average volume of 8,953,453. Medtronic has a 52-week low of $73.31 and a 52-week high of $106.33. The stock's fifty day moving average is $82.25 and its 200-day moving average is $86.55. The company has a market cap of $114.91 billion, a P/E ratio of 24.07, a P/E/G ratio of 2.34 and a beta of 0.55. The company has a current ratio of 2.13, a quick ratio of 1.62 and a debt-to-equity ratio of 0.52.

Medtronic (NYSE:MDT - Get Free Report) last released its earnings results on Wednesday, June 3rd. The medical technology company reported $1.55 earnings per share for the quarter, topping the consensus estimate of $1.54 by $0.01. The business had revenue of $9.81 billion for the quarter, compared to the consensus estimate of $9.62 billion. Medtronic had a net margin of 13.20% and a return on equity of 14.51%. The firm's quarterly revenue was up 9.9% compared to the same quarter last year. During the same period last year, the firm posted $1.62 earnings per share. Medtronic has set its FY 2027 guidance at 5.900-6.000 EPS. As a group, sell-side analysts expect that Medtronic will post 5.94 earnings per share for the current year.

Medtronic Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, July 17th. Stockholders of record on Friday, June 26th were given a $0.72 dividend. This represents a $2.88 annualized dividend and a dividend yield of 3.2%. This is a boost from Medtronic's previous quarterly dividend of $0.71. The ex-dividend date of this dividend was Friday, June 26th. Medtronic's payout ratio is 77.21%.

Medtronic Company Profile

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).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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