Zacks Investment Research Upgrades Medtronic (MDT) to Buy
Medtronic (NYSE:MDT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Tuesday. The brokerage currently has a $105.00 price target on the medical technology company’s stock. Zacks Investment Research‘s price target indicates a potential upside of 13.60% from the stock’s current price.
According to Zacks, “Over the past three months, shares of Medtronic outperformed its industry. We are optimistic about the impending acquisition of Mazor Robotics which is expected to fortify Medtronic's position in spine surgery. The buyout will combine Medtronic's spine implants, navigation and intra-operative imaging technology with Mazor Robotics’robotic-assisted surgery (RAS) systems. Meanwhile, Medtronic reported solid top-line growth across all its major business groups in its first-quarter fiscal 2019. This highlighted sustainability across groups and regions, in addition to displaying successful achievement of synergy targets. Also, gradually stabilizing CRHF market holds promise. The company is also focusing on geographical diversification of its businesses. Yet, escalating costs and expenses continue to weigh on Medtronic’s bottom line. The company’s 2019 guidance remains conservative on apprehension of significant currency woe.”
Several other equities analysts have also issued reports on MDT. Sanford C. Bernstein started coverage on shares of Medtronic in a report on Wednesday, June 27th. They set a “market perform” rating and a $88.00 price objective on the stock. Needham & Company LLC raised shares of Medtronic from a “buy” rating to a “strong-buy” rating and lifted their price objective for the company from $103.00 to $119.00 in a report on Monday, August 13th. Oppenheimer reissued a “buy” rating and set a $104.00 price objective on shares of Medtronic in a report on Tuesday, August 21st. Stifel Nicolaus lifted their price target on shares of Medtronic from $87.00 to $96.00 and gave the stock a “hold” rating in a report on Wednesday, August 22nd. Finally, Morgan Stanley lifted their price target on shares of Medtronic from $95.00 to $105.00 and gave the stock an “equal weight” rating in a report on Wednesday, August 22nd. Seven research analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus target price of $102.21.
Medtronic (NYSE:MDT) last issued its quarterly earnings data on Tuesday, August 21st. The medical technology company reported $1.17 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.11 by $0.06. The company had revenue of $7.38 billion for the quarter, compared to analyst estimates of $7.24 billion. Medtronic had a net margin of 10.56% and a return on equity of 12.98%. Medtronic’s revenue was down .1% compared to the same quarter last year. During the same period last year, the company posted $1.12 earnings per share. Analysts anticipate that Medtronic will post 5.12 EPS for the current fiscal year.
In related news, Director Richard H. Anderson acquired 2,600 shares of the company’s stock in a transaction dated Thursday, August 23rd. The shares were purchased at an average cost of $95.88 per share, with a total value of $249,288.00. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Michael J. Coyle sold 145,544 shares of the business’s stock in a transaction on Wednesday, August 22nd. The shares were sold at an average price of $95.50, for a total transaction of $13,899,452.00. Following the sale, the executive vice president now directly owns 190,680 shares in the company, valued at $18,209,940. The disclosure for this sale can be found here. Insiders have sold 268,678 shares of company stock worth $25,818,353 over the last three months. Corporate insiders own 0.28% of the company’s stock.
Several institutional investors and hedge funds have recently made changes to their positions in MDT. BlackRock Inc. grew its holdings in shares of Medtronic by 2.1% during the second quarter. BlackRock Inc. now owns 97,867,667 shares of the medical technology company’s stock valued at $8,378,448,000 after buying an additional 1,966,789 shares during the last quarter. Bank of New York Mellon Corp grew its holdings in shares of Medtronic by 11.3% during the second quarter. Bank of New York Mellon Corp now owns 15,717,199 shares of the medical technology company’s stock valued at $1,345,549,000 after buying an additional 1,589,932 shares during the last quarter. Artisan Partners Limited Partnership grew its holdings in shares of Medtronic by 4.2% during the second quarter. Artisan Partners Limited Partnership now owns 23,443,933 shares of the medical technology company’s stock valued at $2,007,035,000 after buying an additional 939,892 shares during the last quarter. Vontobel Asset Management Inc. grew its holdings in shares of Medtronic by 20.3% during the second quarter. Vontobel Asset Management Inc. now owns 4,354,308 shares of the medical technology company’s stock valued at $380,385,000 after buying an additional 734,877 shares during the last quarter. Finally, OMERS ADMINISTRATION Corp grew its holdings in shares of Medtronic by 278.8% during the second quarter. OMERS ADMINISTRATION Corp now owns 945,830 shares of the medical technology company’s stock valued at $80,973,000 after buying an additional 696,130 shares during the last quarter. 80.14% of the stock is currently owned by hedge funds and other institutional investors.
Medtronic plc develops, manufactures, distributes, and sells device-based medical therapies to hospitals, physicians, clinicians, and patients worldwide. It operates through four segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group, and Diabetes Group.
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