Medtronic stock: buy or sell?

MDT stock price: $104.18 1.38% At close on August 19th, 2019

Updated on:
August 19th, 2019

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Medtronic inched 1.38% to $104.18 after marking all time highs yesterday. Monday was the third green day in a row, marking 3.17%.

Medtronic plc manufactures and sells device-based medical therapies to hospitals, physicians, clinicians, and patients worldwide.

Should I buy Medtronic stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, 2 buy setups are elegible for Medtronic stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Medtronic stock a buy?

Financial institutions and banks post stock ratings everyday. At Stocks2.com, we collected 15 ratings published for MDT stock in the last 30 days.

The general sentiment of these ratings is bullish for MDT stock, with 7 positive ratings.
Is MDT a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-19Deutsche Bankn/aBuy
2019-8-16Royal Bank of Canadan/aOutperform
2019-8-14Morgan Stanleyn/aEqual Weight
2019-8-14Cowenn/aOutperform
2019-7-23Needham & Company LLCn/aBuy
2019-7-11Barclaysn/aOverweight
2019-6-20Northland Securitiesn/aHold
2019-6-14UBS Groupn/aBuy
2019-4-4Wells Fargo & CoMarket PerformMarket Perform
2019-3-18Northland Securitiesn/aHold
2019-2-4Needham & Company LLCStrong-BuyStrong-Buy
2019-2-4Needham & Company LLCn/aStrong-Buy
2019-1-8BarclaysOverweightOverweight
2019-1-2Morgan StanleyEqual WeightEqual Weight
2019-1-2CitigroupBuyNeutral

Medtronic stock analysis

Daily outlook

Medtronic inched 1.38% to $104.18 after reaching all time highs yesterday.

Medtronic inched 1.38% yesterday and reached a new all time high at $104.43. On July, SMA100d and SMA200d crossed up triggering a rise of 7.56%. Since last May when MDT stock price broke up the SMA200d line, it gained $15.91 (18.02%).

MDT stock chart (daily)

Weekly outlook

Shares of Medtronic closed this week at $104.18 after topping to a new all time high ($104.43) and raised a slightly good 1.38%.

MDT shows a strong mid-term uptrend with several rising tops and rising bottoms. Since its last bottom early August, MDT climbed unceasignly breaking out to new all time highs. Since SMA20d and SMA40w crossed up late June, MDT price climbed $5.34 per share (5.40%). Since late May when MDT stock price broke up the SMA40w line, it gained $16.93 (19.40%).

MDT stock chart (weekly)

Medtronic stock price history

Medtronic stock historical price chart

MDT stock reached all-time highs yesterday with a price of $104.43.

Medtronic stock price target is $105.60

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we found 14 price forecasts for Medtronic stock:
MDT stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-19Deutsche BankReiterates$100.00$111.0011%
2019-8-16Royal Bank of CanadaRaises Targetn/a$110.00-
2019-8-14Morgan StanleyRaises Target$100.00$105.005%
2019-8-14CowenReiterates$99.00$111.0012.1%
2019-7-11BarclaysRaises Target$104.00$110.005.8%
2019-6-20Northland SecuritiesReiteratesn/a$100.00-
2019-6-14UBS GroupRaises Targetn/a$112.00-
2019-4-4Wells Fargo & CoLowers Target$101.00$100.00-1%
2019-3-18Northland SecuritiesReiteratesn/a$84.00-
2019-2-4Needham & Company LLCReiterates$120.00$117.00-2.5%
2019-2-4Needham & Company LLCLowers Target$120.00$117.00-2.5%
2019-1-8BarclaysLowers Target$113.00$104.00-8%
2019-1-2Morgan StanleyRaises Target$98.00$102.004.1%
2019-1-2CitigroupDowngrades$109.00$96.00-11.9%
(in average)$106.40$105.60-1.0%
The price prediction for Medtronic stock is $105.60, moving in a range between $117.00 and $84.00. In average, analysts' outlook on MDT price target is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Medtronic presented its financial report, posting a tiny climb for the Earnings per Share (EPS) ratio. Analyst were expecting $1.24 per share, but Medtronic posted $1.29.
MDT earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/an/an/a
2017-Q3-n/an/an/a
2017-Q4-n/an/an/a
2018-Q12018-02-201.161.170.9%
2018-Q22018-05-241.381.422.9%
2018-Q32018-08-211.111.175.4%
2018-Q42018-11-201.141.227.0%
2019-Q12019-02-191.241.294.0%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Medtronic annual sales stayed constant a tight 0.01% to $29,953.00 million USD from $29,950.00 marked in 2018. Aligned with this, its income margin (compared to sales) remained stable to 10.36%, that is $3,104.00 million.

To have an updated picture of the financial situation of Medtronic, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Medtronic TTM sales up to January 2019 were $30,555.00 and earnings were $4,919.00 M dollars. If we compare this TTM figures with the last reported annuality, we can review Medtronic business evolution since April 2018: Annual sales up to January, compared to lastest yearly report, grew a tiny 2.01%. In line, profit margin (net income/sales) escalated at 10.36%.

MDT annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2014$17,010 M-$3,070 M18.0%-
2014$17,010 M0.00%$3,070 M18.0%0.00%
2015$20,260 M19.11%$2,680 M13.2%-12.70%
2015$20,261 M0.00%$2,675 M13.2%-0.19%
2016$28,830 M42.29%$3,540 M12.3%32.34%
2016$28,833 M0.01%$3,538 M12.3%-0.06%
2017$29,710 M3.04%$4,030 M13.6%13.91%
2017$29,710 M0.00%$4,028 M13.6%-0.05%
2018$29,950 M0.81%$3,100 M10.4%-23.04%
2018$29,953 M0.01%$3,104 M10.4%0.13%
TTM $30,555 M2.01%$4,919 M16.1%58.47%

Quarterly financial results

Medtronic reported $7,546.00 M in revenues for 2019-Q1, a 0.87% improvement compared to previous quarter. Reported quarter income marked $1,269.00 M with a profit margin of 16.82%. Profit margin stepped up a 1.91% compared to previous quarter when profit margin was 14.90%. When comparing sales to same quarter last year, Medtronic sales marked a slightly fine growth and raised a 2.40%. Looking back to recent quarterly results, Medtronic posted 2 negative quarters in a row.
MDT quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$7,920 M-$1,160 M14.6%-
2017-Q3$7,390 M-6.69%$1,020 M13.8%-12.07%
2017-Q4$7,050 M-4.60%$2,017 M28.6%97.75%
2018-Q1$7,369 M4.52%$-1,389 M-18.8%-168.86%
2018-Q2$8,144 M10.52%$1,460 M17.9%-205.11%
2018-Q3$7,384 M-9.33%$1,075 M14.6%-26.37%
2018-Q4$7,481 M1.31%$1,115 M14.9%3.72%
2019-Q1$7,546 M0.87%$1,269 M16.8%13.81%

Medtronic ownership

When you are planning to buy a stock, it's worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Medtronic, 0.06% of all outstanding shares are owned by its staff.

Bearish positions for MDT stock account 0.00%, no big difference from last month.

For a better context understanding, the next table shows ownership data compared to other related companies:

MDTABTBAXBSXCNMD
Market cap$0.0 M$150.6 B$44.8 B$59.4 B$2.7 B
Total shares0.0 M1,760.0 M510.2 M1,390.0 M28.3 M
Float shares1,340.0 M1,750.0 M509.5 M1,390.0 M27.6 M
  - Institutional holdings (%)84.2%76.5%88.2%93.4%97.5%
  - Insider holdings (%)0.1%0.7%0.1%0.2%1.8%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Medtronic summary

Monday, August 19th, 2019
Open$103.50
Close$104.18
Day range$103.02 - $104.43
Previous close$102.76
Session gain1.38%
Average true range$2.01
50d mov avg$99.88
100d mov avg$94.32
200d mov avg$92.00
Daily patternlt02a
Weekly pattern lb03c

Medtronic performance

To measure stock performance is always good to compare with competitors or related stocks. We compared Medtronic against , Baxter International, Boston Scientific, CONMED, Edwards Lifesciences, Integra LifeSciences, , Owens & Minor, Stryker and Zimmer Biomet in the following table:
Stock3m6m12m
MDTMedtronic12.60%12.32%11.42%
ABT11.57%13.26%31.61%
BAXBaxter Internatio...17.33%18.30%22.76%
BSXBoston Scientific11.07%5.45%23.07%
CNMDCONMED18.87%28.08%25.38%
EWEdwards Lifescien...31.36%28.98%56.99%
IARTIntegra LifeScien...25.88%12.30%4.07%
JNJ-4.75%-1.88%-0.12%
OMIOwens & Minor42.53%-22.14%-69.40%
SYKStryker18.15%16.75%29.11%
ZBHZimmer Biomet21.25%11.80%11.40%

Medtronic competitors

One check before trading any stock is to review a list of its competitors, in this case for Medtronic. We picked 10 companies as Medtronic competitors as they are in the same industry or have similar market objectives.

Latest Medtronic stock news