Medtronic plc (MDT) Gets Mixed Reviews From Analysts

Analysts at Deutsche Bank, assumed coverage of Medtronic plc (NYSE:MDT) with Buy recommendation, according to their opinion released on January 03. Citigroup analysts have downgraded their rating of MDT stock from Buy to Neutral in a separate flash note to investors on January 02. Analysts at JP Morgan issued an upgrade from Neutral to Overweight for the stock, in a research note that dated back to December 19.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Medtronic plc (NYSE:MDT)’s prospects. The earliest insider trade took place on 01/09/2019. Ishrak Omar gathered a total of 12 thousand shares of company at average share price of $84.05. The total for the purchase was set at $1.01 million. After this transaction, the Chairman & CEO account balance stood at 588.34 thousand shares. The stock grew 0.94 percent since that insider purchase. On 01/09/2019, Parkhill Karen L, EVP & CFO, purchased 3 thousand shares at a price per share of $83.87. This added 251.61 thousand shares to the insider’s fortune and the stock saw a 1.16 percent rally in value since the news became public. This transaction left 83.68 thousand shares in the EVP & CFO account. On 09/24/2018, EVP & GroupPres Restora Therap Martha Geoffrey performed a sale transaction worth $4.88 million. This sale at $97.93 each has eliminated 49.8 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -13.37 percent decrease since the transaction was reported. The insider now is left with 59.2 thousand shares remaining in the account. Hakami Hooman, who performs the EVP & Group President Diabetes job, sold 26.16 thousand shares for $2.52 million. The disposal occurred on 08/31/2018 was priced at $96.29 per share. The share price plunged -11.89 percent since the reporting date. Hakami Hooman now left with a stake of 62.65 thousand MDT stock worth $5.31 million after the insider selling.

Medtronic plc (MDT) is expected to jump by 22.07 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $120-month high price target. This represents a whopping 41.44 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $104, which represents a return potential of 22.58 percent when compared to the closing price of the stock of $84.84 on Friday, January 11. The lowest price target for the stock is $84 — slightly more than -0.99 percent from MDT’s current share price.

The shares are currently floating around the first support level of $83.9. Below this, the next support is placed in the zone of $82.96. Till the time, the MDT stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 39.53 on daily chart, which may remain a cause for comfort. If the price breaks below $82.96 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $85.33 mark may result into a pull-back move towards $85.82 level.

MDT shares dropped 0 points or 0 percent on Friday to $84.84 with a light trade volume of 4.972 million shares. After opening the session at $84.17, the shares went as high as $84.88 and as low as $83.45, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $114 billion and now has 1.34 billion shares outstanding. Medtronic plc (MDT) stock has lost -11.13 percent of market value in 21 trading days.

MDT stock has a trailing 3-year beta of 0.9, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.45 a share in the trailing twelve months. The stock’s value has fallen -6.73 percent year to date (YTD) against a decline of -0.76 percent in 12 month’s time. The company’s shares still trade -15.29 percent away from its 1-year high of $100.15 and 11.03 percent up from 52-week low of $76.41. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Medtronic plc (MDT) are trading at a P/E ratio of 26.83 times earnings reported for the past 12 months. The industry MDT operates in has an average P/E of 32.17. Its P/E ratio went as low as 13.74X and as high as 32.18 over the 5-year span. Further, it is sporting a 3.75 on the Price-to-Sales ratio. Compare this with the industry average P/S of 6.7. 70.5 percent is the gross profit margin for Medtronic plc and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.