Diamond Hill Capital Management Inc. Lowers Stake in Medtronic PLC $MDT

Diamond Hill Capital Management Inc. lowered its stake in shares of Medtronic PLC (NYSE:MDT) by 15.5% in the fourth quarter, HoldingsChannel.com reports. The firm owned 2,307,586 shares of the medical technology company’s stock after selling 423,819 shares during the period. Diamond Hill Capital Management Inc.’s holdings in Medtronic were worth $221,667,000 at the end of the most recent quarter.

A number of other hedge funds have also recently made changes to their positions in MDT. Artisan Partners Limited Partnership boosted its position in Medtronic by 2.6% in the 3rd quarter. Artisan Partners Limited Partnership now owns 1,234,550 shares of the medical technology company’s stock valued at $117,579,000 after buying an additional 31,314 shares during the period. SageView Advisory Group LLC boosted its position in Medtronic by 164.8% in the 3rd quarter. SageView Advisory Group LLC now owns 24,204 shares of the medical technology company’s stock valued at $2,305,000 after buying an additional 15,062 shares during the period. CSM Advisors LLC boosted its position in Medtronic by 13.2% in the 3rd quarter. CSM Advisors LLC now owns 285,260 shares of the medical technology company’s stock valued at $27,169,000 after buying an additional 33,167 shares during the period. UMB Bank n.a. boosted its position in Medtronic by 65.8% in the 3rd quarter. UMB Bank n.a. now owns 138,278 shares of the medical technology company’s stock valued at $13,170,000 after buying an additional 54,898 shares during the period. Finally, Applied Finance Capital Management LLC purchased a new position in Medtronic in the 3rd quarter valued at approximately $1,308,000. Hedge funds and other institutional investors own 82.06% of the company’s stock.

Medtronic News Summary

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: Medtronic said the SPR Therapeutics purchase will strengthen its neuromodulation portfolio by adding temporary peripheral nerve stimulation technology for chronic pain, a move that could support longer-term growth and broaden its treatment offerings. PR Newswire article
• Positive Sentiment: Reuters reported that the deal expands Medtronic’s portfolio of treatments for chronic pain, reinforcing the company’s strategy to grow in higher-value medical device categories. Reuters article
• Neutral Sentiment: Piper Sandler maintained its Hold rating on Medtronic, suggesting analysts are not yet signaling a major re-rating from the news. The Globe and Mail article
• Neutral Sentiment: Healthcare stocks were mixed in afternoon trading, so broader sector movement does not appear to be the main driver of Medtronic’s move. Yahoo Finance sector update
• Negative Sentiment: Some market commentary framed the SPR deal as a reason for MDT’s stock to slide, likely reflecting concern about acquisition costs and execution risk. Blockonomi article

Medtronic Price Performance

Shares of NYSE:MDT opened at $78.11 on Friday. The company’s fifty day moving average price is $83.71 and its 200 day moving average price is $93.25. Medtronic PLC has a 12 month low of $74.40 and a 12 month high of $106.33. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.54 and a quick ratio of 1.87. The firm has a market capitalization of $100.29 billion, a P/E ratio of 21.76, a P/E/G ratio of 1.86 and a beta of 0.62.

Medtronic (NYSE:MDT) last announced its quarterly earnings results on Tuesday, February 17th. The medical technology company reported $1.36 EPS for the quarter, topping the consensus estimate of $1.34 by $0.02. Medtronic had a net margin of 13.00% and a return on equity of 14.82%. The firm had revenue of $9.02 billion for the quarter, compared to analyst estimates of $8.89 billion. During the same period last year, the business earned $1.38 EPS. Medtronic’s revenue for the quarter was up 5.8% compared to the same quarter last year. As a group, sell-side analysts predict that Medtronic PLC will post 5.56 earnings per share for the current fiscal year.

Medtronic Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, April 17th. Investors of record on Friday, March 27th were paid a dividend of $0.71 per share. This represents a $2.84 annualized dividend and a yield of 3.6%. The ex-dividend date was Friday, March 27th. Medtronic’s dividend payout ratio (DPR) is currently 79.11%.

Analyst Ratings Changes

MDT has been the subject of several recent research reports. JPMorgan Chase & Co. decreased their price target on shares of Medtronic from $105.00 to $100.00 and set a “neutral” rating for the company in a research report on Wednesday, February 18th. Stifel Nicolaus decreased their price objective on shares of Medtronic from $105.00 to $95.00 and set a “hold” rating for the company in a research report on Monday, April 6th. Weiss Ratings cut shares of Medtronic from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, April 21st. Barclays lifted their price objective on shares of Medtronic from $118.00 to $120.00 and gave the stock an “overweight” rating in a research report on Wednesday, April 1st. Finally, Argus decreased their price objective on shares of Medtronic from $125.00 to $115.00 and set a “buy” rating for the company in a research report on Monday, April 6th. Fifteen analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $106.45.

About Medtronic

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).