Medtronic plc (MDT): Are The Signals Sending Scary Signs?

On December 03, 2019, Medtronic plc (NYSE:MDT) shares gained 0.07% or 0.08 points to close at $110.99 with a thin trading volume of 3.569 million shares. It opened the trading session at $110.05, the shares rose to $111.53 and dropped to $110.01, the range by which the price of stock traded the whole day. The company now has a market cap of $150 billion and currently has 1.35 billion outstanding shares. Medtronic plc (MDT) stock has accumulated 2.23 percent of market value in 21 trading days.

MDT stock’s trailing 3-year beta is 0.61, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $3.21 share in the trailing 52 weeks. The stock’s value surged 22.02 percent year to date (YTD) compared to a rise of 13.8 percent in 52 week’s period. The firm’s shares are still trading -3.03 percent below its 1-year high of $114.46 and 35.91 percent up from 52-week low of $81.66. The average consensus ranking on the company is 2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

Medtronic plc (MDT) is most likely going to rise 9.83 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $134-month high price target. This represents a whopping 20.73 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $122, which means a return possibility of 9.92 percent in comparison with the closing price of the stock of $110.99 on December 03. The lowest price set for the stock is $116 — just above 4.51 percent from MDT share price now.

Past records have indicated that shares in Medtronic plc declined on 21 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.

Let’s take a glimpse at some insider activity at Medtronic plc (NYSE:MDT) and observe the pattern. The earliest insider trade happened on 12/02/2019. WHITE ROBERT JOHN parted with a total of 52.17 thousand shares of the firm at average share price of $110.62. The total amount for the sale was set at $5.77 million. On completing this exchange, the EVP & President MITG account balance was 52.07 thousand shares. The stock grew 0.33 percent from that insider sale. On 11/15/2019, COYLE MICHAEL J, EVP & Group Pres, Cardiac&Vasc, did a sale of 36.87 thousand shares at a price of $111.25 per share. This got rid of 4.1 million shares from the insider’s fortune and the stock experienced a -0.23 percent retreat in price since the news became public. This exchange saw 192.62 thousand shares get out from the EVP & Group Pres, Cardiac&Vasc account.

On 11/14/2019, EVP & Group Pres, Cardiac&Vasc COYLE MICHAEL J recorded a sale transaction valued at $230.74 thousand. The sale at $109.77 a share has eliminated 2.1 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 1.11 percent increase since the transaction reporting date. The company insider is left with 192.62 thousand shares remaining in the account. COYLE MICHAEL J, who works as EVP & Group Pres, Cardiac&Vasc at the company, performed a sale of 38.98 thousand shares in a transaction worth $4.27 million. The disposal recorded on 11/01/2019 was priced at $109.5 per share. The stock price soared 1.36 percent since the transaction. COYLE MICHAEL J currently holds a stake of 192.62 thousand in MDT stock which is worth $21.38 million after the insider selling.

The stock is lingering around the initial support level of $110.16. After this, the following support is at the zone of $109.32. Up until the time the MDT stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 55.25 on the daily chart, and this may be a cause for concern. In case the price goes below $109.32 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $111.68 level may cause a pull-back move approaching $112.36 mark.

Medtronic plc (MDT) shares are trading at a P/E ratio of 32.2 times earnings posted in the trailing 12 months. The industry MDT deals with has an average P/E of 51.9. Its P/B ratio is standing at 2.9X compared to the 4.6 industry average. It is additionally sporting a 4.9 on the Price-to-Sales ratio, compared to the industry’s P/S average of 5.2. Medtronic plc has a 69.6% gross profit margin.