Traders Purchase High Volume of Call Options on Medtronic (NYSE:MDT)

Medtronic PLC (NYSE:MDT) saw some unusual options trading on Tuesday. Investors bought 33,681 call options on the stock. This represents an increase of approximately 140% compared to the typical daily volume of 14,053 call options.

Medtronic News Roundup

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: Medtronic reported adjusted earnings of $1.45 per share, above the $1.39 consensus estimate, while revenue rose 13.7% year over year to $9.76 billion, exceeding expectations of approximately $9.55 billion. Growth was broad-based across cardiovascular, neuroscience, medical surgical and diabetes businesses. Medtronic Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Cardiovascular revenue climbed 19.5% on reported growth, supported by demand for devices used in complex procedures. Neuroscience, medical surgical and diabetes revenue also grew at double-digit rates, reinforcing the company’s growth outlook. Medtronic boosts fiscal 2027 forecasts on heart device demand
• Positive Sentiment: Management raised fiscal 2027 organic revenue growth guidance to 7.25%-7.75% and set adjusted EPS guidance at $5.94-$6.00, citing improved margins, portfolio strength and newer growth platforms. Medtronic reports first quarter fiscal 2027 results
• Positive Sentiment: Medtronic committed approximately $700 million to a partnership with Cornerstone Robotics, gaining distribution rights for the Sentire surgical system in select markets outside the U.S. The company also agreed to invest up to $80 million in Pi-Cardia to support complex transcatheter aortic valve replacement procedures. These moves broaden its robotics and structural-heart offerings. Medtronic Announces Strategic Partnership with Cornerstone Robotics
• Positive Sentiment: Unusually heavy call-option activity and generally favorable analyst opinions, along with Medtronic’s dividend yield above 3%, added to the constructive investor sentiment.
• Neutral Sentiment: The stock showed relative strength even as broader U.S. markets traded lower, suggesting the earnings beat and raised outlook were outweighing broader risk-off conditions.
• Negative Sentiment: Second-quarter fiscal 2027 EPS guidance of $1.32-$1.34 was slightly below the $1.35 consensus estimate, and the sizeable robotics investment could increase near-term execution and integration risks.

Insider Activity at Medtronic

In other news, EVP Harry Skip Kiil sold 4,189 shares of the company’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $80.44, for a total transaction of $336,963.16. Following the transaction, the executive vice president owned 37,227 shares in the company, valued at approximately $2,994,539.88. This represents a 10.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.27% of the stock is currently owned by company insiders.

Institutional Trading of Medtronic

Institutional investors and hedge funds have recently bought and sold shares of the stock. Ipsen Advisor Group LLC increased its stake in Medtronic by 1.7% during the fourth quarter. Ipsen Advisor Group LLC now owns 5,952 shares of the medical technology company’s stock worth $572,000 after acquiring an additional 101 shares during the last quarter. Quadrant Capital Group LLC boosted its stake in Medtronic by 0.3% during the fourth quarter. Quadrant Capital Group LLC now owns 32,477 shares of the medical technology company’s stock worth $3,120,000 after buying an additional 101 shares during the period. Rossby Financial LCC increased its position in Medtronic by 5.1% during the fourth quarter. Rossby Financial LCC now owns 2,193 shares of the medical technology company’s stock valued at $211,000 after acquiring an additional 107 shares during the last quarter. Wealthspire Retirement LLC raised its stake in shares of Medtronic by 5.0% in the fourth quarter. Wealthspire Retirement LLC now owns 2,410 shares of the medical technology company’s stock valued at $232,000 after acquiring an additional 114 shares during the period. Finally, Mitchell Mcleod Pugh & Williams Inc. raised its stake in shares of Medtronic by 2.0% in the fourth quarter. Mitchell Mcleod Pugh & Williams Inc. now owns 6,043 shares of the medical technology company’s stock valued at $622,000 after acquiring an additional 117 shares during the period. 82.06% of the stock is currently owned by institutional investors.

Medtronic Stock Up 2.0%

Shares of MDT traded up $1.78 during trading hours on Tuesday, hitting $92.43. The company had a trading volume of 10,169,695 shares, compared to its average volume of 8,852,474. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.62 and a current ratio of 2.13. The stock has a market capitalization of $118.30 billion, a price-to-earnings ratio of 24.81, a P/E/G ratio of 2.45 and a beta of 0.55. Medtronic has a 52-week low of $73.31 and a 52-week high of $106.33. The firm has a fifty day moving average price of $85.81 and a 200-day moving average price of $85.48.

Medtronic (NYSE:MDT) last issued its 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 business had revenue of $9.76 billion during the quarter, compared to analyst estimates of $9.55 billion. Medtronic had a return on equity of 14.51% and a net margin of 13.20%.Medtronic’s revenue was up 13.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.26 EPS. 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, equities research analysts forecast that Medtronic will post 5.94 EPS for the current fiscal year.

Medtronic Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 16th. Shareholders 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 annualized dividend and a yield of 3.1%. Medtronic’s payout ratio is currently 77.21%.

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. Evercore set a $105.00 target price on shares of Medtronic in a report on Monday, July 6th. Wall Street Zen upgraded Medtronic from a “hold” rating to a “buy” rating in a research note on Saturday, July 18th. Truist Financial decreased their price target on shares of Medtronic from $95.00 to $86.00 and set a “hold” rating on the stock in a report on Thursday, June 4th. Robert W. Baird lowered their price objective on shares of Medtronic from $93.00 to $85.00 and set a “neutral” rating on the stock in a research report on Thursday, June 4th. Finally, The Goldman Sachs Group reduced their price target on shares of Medtronic from $84.00 to $83.00 and set a “neutral” rating on the stock in a research report on Thursday, June 4th. Eighteen investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $99.79.

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).