Medtronic (NYSE:MDT) Stock Jumps 4.1% – Still a Buy?

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

Key Headlines Impacting Medtronic

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: MiniMed exchange offer oversubscribed: Medtronic said its exchange offer for MiniMed Group shares was oversubscribed and that it will exchange all of its remaining 252.8 million MiniMed shares. The transaction, subject to final results, could simplify Medtronic’s portfolio and provide greater clarity around the diabetes business. The reported proration rate was 18.3%. Medtronic Announces Preliminary Results of MiniMed Group, Inc. Exchange Offer
• Positive Sentiment: Favorable industry growth outlook: Research forecasts call for the global mHealth solutions market to expand from $109.05 billion in 2026 to $275.44 billion by 2031. Medtronic is identified as a key participant, potentially benefiting from increased adoption of connected-care and remote-monitoring technologies. mHealth Solutions Market Forecasts Growth
• Positive Sentiment: Analyst remains bullish: BTIG lowered its price target modestly from $100 to $99 but maintained a “buy” rating, leaving meaningful potential upside from recent trading levels. Medtronic Price Target Cut by BTIG Research
• Neutral Sentiment: A separate industry report projects roughly 17% annual growth in the bioelectronic medicine device market through 2030, with Medtronic among the companies advancing neurostimulation technologies. The opportunity is supportive, though the report does not provide company-specific financial estimates. Global Bioelectronic Medicine Device Market Report
• Negative Sentiment: Short interest increased: Rising short interest signals that more investors are positioning for weakness, although it can also create the possibility of future short-covering if Medtronic continues to outperform. Medtronic Sees Increase in Short Interest

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Wall Street Zen raised Medtronic from a “hold” rating to a “buy” rating in a research report on Saturday, October 3rd. Needham & Company LLC reissued a “buy” rating on shares of Medtronic in a report on Thursday, September 17th. Evercore set a $105.00 target price on Medtronic in a research note on Monday, July 6th. Piper Sandler reaffirmed a “neutral” rating on shares of Medtronic in a report on Monday, August 10th. Finally, BTIG Research dropped their price objective on shares of Medtronic from $100.00 to $99.00 and set a “buy” rating on the stock in a research note on Monday. Eighteen research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $102.88.

Medtronic Trading Up 0.9%

The firm has a market capitalization of $118.62 billion, a PE ratio of 22.84, a price-to-earnings-growth ratio of 2.09 and a beta of 0.55. The business’s 50-day moving average price is $90.51 and its 200-day moving average price is $84.84. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.07 and a quick ratio of 1.54.

Medtronic (NYSE:MDT) last posted its quarterly earnings data on Tuesday, September 1st. The medical technology company reported $1.45 EPS 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 for the quarter, compared to analyst estimates of $9.55 billion. During the same quarter in the previous year, the firm earned $1.26 earnings per share. The business’s revenue 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. As a group, analysts expect that Medtronic PLC will post 5.98 earnings per share for the current fiscal year.

Medtronic Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 16th. Shareholders of record on Friday, September 25th will be issued a $0.72 dividend. This represents a $2.88 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date of this dividend is Friday, September 25th. Medtronic’s dividend payout ratio is presently 70.94%.

Insider Buying and Selling

In other 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 transaction, the executive vice president owned 42,186 shares in the company, valued at $3,950,718.90. The trade was a 3.40% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 0.27% of the company’s stock.

Institutional Trading of Medtronic

Several institutional investors have recently added to or reduced their stakes in MDT. BlackRock Inc. increased its position in shares of Medtronic by 0.7% during the second quarter. BlackRock Inc. now owns 114,020,787 shares of the medical technology company’s stock worth $8,919,846,000 after purchasing an additional 838,220 shares in the last quarter. State Street Corp boosted its stake in shares of Medtronic by 2.7% during the 2nd quarter. State Street Corp now owns 63,399,315 shares of the medical technology company’s stock worth $5,005,320,000 after purchasing an additional 1,658,301 shares during the last quarter. 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 grew its holdings in Medtronic by 37.2% in the second quarter. First Eagle Investment Management LLC now owns 13,783,983 shares of the medical technology company’s stock valued at $1,078,321,000 after purchasing an additional 3,739,288 shares during the period. Finally, WCM Investment Management LLC purchased a new position in shares of Medtronic in the 1st quarter valued at $965,922,000. 82.06% of the stock is currently owned by hedge funds and other institutional investors.

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.