Is Medtronic plc (MDT) A Risky Investment?

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KOSK Stock
KOSK Stock

Medtronic plc (NYSE:MDT) finished Thursday with a subtraction of -$2.17 to close at $83.56, a downside of -2.53 percent. An average of 7,393,620 shares of common stock have been traded in the last five days. There was a fall of -$7.06 in the past week, and it reached a new high 2 times over the past 12 months. The last 20 days have seen an average of 6,656,245 shares traded, while the 50-day average volume stands at 5,562,802.

MDT stock has decreased by -7.38% in the last month. The company shares reached their 1-month lowest point of $83.21 on 09/22/22. With the stock rallying to its 52-week high on 04/21/22, shares of the company touched a low of $85.66 and a high of $131.31 in 52 weeks. It has reached a new high 12 times so far this year and lost -19.23% or -$19.89 in price. In spite of this, the price is down -36.36% from the 52-week high.


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Insider Transactions

189 days have passed since Medtronic plc (MDT) last reported insider trading activity. PARKHILL KAREN L, who is EVP & Chief Financial Officer, most recently acquired $682 shares at $110.00 per share on Mar 18. In this transaction, the insider spent $75,020. SVP, Chief HR Officer, Surface Carol A, disposed of 6,000 shares at a price of $105.30 on Mar 11. The insider now owns more than $631,800 worth of shares. Prior to that, EVP & Pres. Medical Surgical WHITE ROBERT JOHN went on to Sale 7,218 shares at $102.04 each on Dec 23. An amount of $736,525 was transacted.

Valuation Metrics

Medtronic plc (MDT) has a trailing price-to-earnings (P/E) ratio of 21.61. The stock’s beta is 0.76. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.59, the price-to-book (PB) ratio at 2.11, and the price-to-cash flow ratio at 48.87.

The company has a payout ratio of 66.10%. The company’s most recent quarterly dividend payment was $0.68 a share, without any change from last year. Its latest increase dividend $0.05 reported on Wednesday May 25 2022.

Financial Health

The quick ratio of Medtronic plc for the three months ended April 29 was 1.20, and the current ratio was 1.60, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.33 and a total debt to equity ratio of 0.44 for the quarter ending April 29. Its gross profit as reported stood at $21.54 billion compared to revenue of $31.69 billion.

Earnings Surprise

For the three-month period that ended April 29, Medtronic plc had $6.73 billion in cash and short-term investments compared to $17.48 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $929.0 million in the quarter, while revenues of $1.49 billion were grew 17.87%. The analyst consensus anticipated Medtronic plc’s latest quarter earnings to come in at $1.56 per share, but it turned out to be $1.52, a -2.60% surprise. For the quarter, EBITDA amounted to $1.79 billion. Shareholders own equity worth $1.33 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Medtronic plc (MDT) price momentum. RSI 9-day as of the close on 22 September was 25.00%, suggesting the stock is oversold, with historical volatility in this time frame at 24.84%.

As of today, MDT’s price is $87.54 -7.79% or -$7.06 from its 5-day moving average. MDT is currently trading -6.41% lower than its 20-day SMA and -19.93% lower than its 100-day SMA. However, the stock’s current price level is -4.95% below the SMA50 and -24.20% below the SMA200.

The stochastic %K and %D were 15.49% and 35.37%, respectively, and the average true range (ATR) was 2.12. With the 14-day stochastic at 3.81% and the average true range at 2.02, the RSI (14) stands at 31.11%. The stock has reached -3.12 on the 9-day MACD Oscillator while the 14-day reading was at -2.61.

Analyst Ratings

Raymond James downgraded Medtronic plc (NYSE: MDT) to a a Mkt perform rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for Medtronic plc (MDT) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell MDT, while 11 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 3 analysts, while 10 others rate it as a “buy”.

What is MDT’s price target for the next 12 months?

Analysts predict a range of price targets between $85.00 and $121.00, with a median target of $105.00. Taking a look at these predictions, the average price target given by analysts for Medtronic plc (MDT) stock is $103.18.

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