Asset Management One Raises Medtronic Stake to $56.11M as Q3 EPS Beats Estimates
Asset Management One increased its Medtronic stake by 2.4% to 589,186 shares valued at $56.11 million, while institutional ownership rose to 82.06%. The company reported Q3 EPS of $1.36 beating estimates by $0.05 on $8.96B revenue (+6.6% YoY) and guided FY26 EPS to $5.62-5.66.
1. Institutional Stake Increase
In the third quarter, Asset Management One Co. Ltd. increased its holdings in Medtronic PLC by 2.4%, purchasing an additional 13,594 shares to bring its total to 589,186 shares valued at $56.11 million. Other institutional investors also adjusted their positions: Gateway Investment Advisers LLC added 1,405 shares (1.6% increase) to reach 90,237 shares; DMKC Advisory Services LLC acquired 208 more shares (0.9% increase) for a total of 24,230; Moss Adams Wealth Advisors LLC lifted its stake by 3.4% to 4,431 shares; Saxony Capital Management LLC added 112 shares (3.8% increase) to reach 3,046; and Global Retirement Partners LLC made the largest percentage move, boosting its position by 17.1% with an extra 4,900 shares to hold 33,584. Institutional ownership now represents 82.06% of the company’s share count.
2. Financial Metrics and Guidance
Medtronic reported third-quarter revenue of $8.96 billion, beating consensus estimates by $100 million and marking a 6.6% year-over-year increase. Earnings per share came in at $1.36, outperforming analyst projections by $0.05 and improving from $1.26 a year earlier. The company’s return on equity stands at 14.86% and its net margin at 13.71%. Balance-sheet metrics remain healthy, with a debt-to-equity ratio of 0.57, current ratio of 2.42 and quick ratio of 1.80. For fiscal 2026, Medtronic has guided to EPS between 5.620 and 5.660, while consensus forecasts sit at 5.46 EPS for the year.
3. Dividend Policy and Yield
Medtronic declared a quarterly dividend of $0.71 per share, payable on January 16 to shareholders of record as of December 26. This distribution translates to an annualized payout of $2.84 and a yield near 3.0%. The company’s dividend payout ratio is currently 76.55%, reflecting its commitment to returning cash to investors while maintaining investment in research and development.
4. Analyst Sentiment and Valuation
Wall Street analysts maintain a generally positive outlook on Medtronic, with one firm assigning a Strong Buy rating, thirteen at Buy and twelve at Hold, yielding a consensus “Moderate Buy.” The average target price stands at $109.94, with recent upward revisions from Barclays, Wells Fargo and others. Key valuation metrics include a price-to-earnings ratio of 25.88, a price-to-earnings-growth ratio of 2.53 and a beta of 0.71, underscoring the stock’s relative stability within the medical technology sector.