Latest news with #MiniMed
Forbes
05-08-2025
- Business
- Forbes
More Downside For Medtronic Stock?
Medtronic (NYSE:MDT), which is renowned for inventing the world's first battery-operated implantable pacemaker, has over time earned respect as a worldwide leader in medical technology and has created substantial value for its shareholders. Although the company's advancements have influenced contemporary healthcare, its stock presents a more cautious narrative today. Medtronic experienced a 50% decline in its stock from its 2021 peak of approximately $140 to below $70 in late 2023, partly attributed to the recall of its MiniMed 600 and 700 series insulin pumps over battery complications. While MDT stock has since regained some of those losses and currently boasts a market cap exceeding $100 billion, it still trades about 30% lower than that peak, prompting concerns regarding sustained investor faith. In the past year, Medtronic reported nearly $33.2 billion in revenue and $4.3 billion in net income, indicating slight top-line growth and consistent profitability. However, operating cash flow has been relatively weak and erratic, with only $127 million recorded in the latest quarter — a sum representing less than 0.5% of revenue and suggesting tighter cash generation despite stable earnings. What's not to appreciate? Here's the reality: in a downturn, MDT might still face significantly greater losses, and historical evidence supports this. In 2022, the stock declined nearly 49%, much more than the S&P 500. Therefore, could today's $93 stock dip below $50 if macroeconomic conditions worsen? It's a possibility. Of course, individual stocks tend to be more volatile compared to a diversified portfolio — and in this environment, if you desire potential gains with reduced volatility relative to a single stock, consider the High-Quality portfolio, which has outperformed the S&P 500 and achieved returns exceeding 91% since its inception. Why is this particularly important now? While Medtronic continues to innovate within its healthcare segment, current economic challenges may hold greater significance. Indeed, inflation pressures have eased, but they haven't vanished entirely. Moreover, growing uncertainty regarding global trade, interest rate strategies, and medical reimbursement trends could further strain healthcare profit margins. These risks heighten the likelihood of another downturn, or at least a more challenging environment for markets. When compounded with political and geopolitical uncertainties, it becomes clearer why a stock like Medtronic, despite its fundamental strengths, may find it difficult to reclaim its former highs. Here are the specific data points concerning Medtronic that raise our concerns: During the last two economic downturns, MDT stock lost significantly more value than the benchmark S&P 500 index (refer to the last six market crashes compared). Wealth Protection Here's the primary concern: Medtronic is still priced at a trailing P/E of approximately 27, despite experiencing slowing growth. Its LTM revenue growth has consistently slowed, from over 5% eight quarters ago to under 3% in the most recent quarter. So ask yourself: if the stock decreases to $70 or $50, will you maintain your position? Or will you panic sell? Maintaining a position in a falling stock is never easy. Trefis collaborates with Empirical Asset Management — a Boston-based wealth management firm — whose asset allocation strategies produced positive returns during the 2008-09 period when the S&P lost more than 40%. Empirical has included the Trefis HQ Portfolio within this asset allocation framework to offer clients better returns with lower risk compared to the benchmark index; this strategy is less of a roller-coaster experience, as evidenced by HQ Portfolio performance metrics.
Yahoo
08-07-2025
- Business
- Yahoo
Medtronic (NYSE:MDT) Prepares for Diabetes Unit Spin-Off with New CFO Appointment
Medtronic experienced a price increase of 7% over the last quarter, which may have been influenced by notable corporate developments and robust financial performance. The company announced Chad Spooner's appointment as CFO of MiniMed, a step vital for its separation initiative. Medtronic's financial results showed solid growth, with annual sales rising to $33,537 million and net income reaching $4,662 million. Meanwhile, its dividend increase to $0.71 per share reflects shareholder confidence. These events occurred against a backdrop of mixed broader market movements, with ongoing trade uncertainties impacting investor sentiment globally. We've discovered 1 weakness for Medtronic that you should be aware of before investing here. Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 24 best rare earth metal stocks of the very few that mine this essential strategic resource. The recent developments at Medtronic, particularly the appointment of Chad Spooner as CFO of MiniMed and the robust fiscal performance, have likely played a role in the company's recent share price increase of 7% this past quarter. These strategic moves are anticipated to bolster Medtronic's separation initiative and could significantly impact revenue and earnings forecasts, especially with strong financial backing reflected in the dividend hike to US$0.71 per share. The broader market uncertainties seem to have been mitigated by these internal advancements, positioning the company favorably in its ongoing endeavors. Over the past year, Medtronic's total shareholder return, comprising both share price appreciation and dividends, was a solid 17.88%. This performance is notable given that it surpassed the broader US market return of 12.5%. Meanwhile, when compared to the US Medical Equipment industry, Medtronic also outperformed the industry average return of 10.3% over the same period, indicating robust resilience and adaptability amidst market challenges. This context helps contextualize the positive response to the news and the company's initiatives aimed at sustaining growth and improving market share. The recent news further aligns with the company's revenue and earnings forecasts, with revenue projected to grow by 5.1% annually. The anticipation of improved profit margins from 13.9% to 15.4% by 2028 underscores the potential positive impact of these initiatives on Medtronic's financial health. The current share price of US$88.75 remains below the consensus price target of US$96.58, suggesting room for growth. Analysts' expectations of continued expansion, especially in emerging markets, support this outlook while also highlighting possible upside potential as Medtronic strengthens its technological and market positioning. Our valuation report unveils the possibility Medtronic's shares may be trading at a discount. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:MDT. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
12-06-2025
- Business
- Globe and Mail
Medtronic announces MiniMed as name for planned New Diabetes Company
GALWAY, Ireland, June 12, 2025 /CNW/ -- Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced MiniMed as the name for the planned New Diabetes Company following the intended separation. The name honors the company's roots, reflecting its original name prior to its acquisition by Medtronic in 2001, and a deep 40-year history of being at the forefront of transforming diabetes care around the world.
Cision Canada
12-06-2025
- Health
- Cision Canada
Medtronic announces MiniMed as name for planned New Diabetes Company
GALWAY, Ireland, June 12, 2025 /CNW/ -- Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced MiniMed as the name for the planned New Diabetes Company following the intended separation. The name honors the company's roots, reflecting its original name prior to its acquisition by Medtronic in 2001, and a deep 40-year history of being at the forefront of transforming diabetes care around the world. "Our journey began in 1983, when visionary entrepreneur Alfred E. Mann founded MiniMed and revolutionized diabetes care with many first-of-its-kind innovations that pushed the boundaries of care and helped simplify life with diabetes for countless people around the world," said Que Dallara, current EVP and President of Medtronic Diabetes and Chief Executive Officer designate of MiniMed. "We're thrilled to honor this rich 40-year legacy with a name that carries deep meaning and trust. As we step forward into this new and exciting chapter, we'll focus relentlessly on fulfilling our Mission to make diabetes more predictable so everyone can embrace life to the fullest." Managing diabetes can feel draining and exhausting due to the constant mental and physical demands to keep glucose levels in a healthy range. Every meal and activity requires careful calculation — counting carbs, adjusting insulin, and monitoring levels to prevent dangerous low and high blood sugars that can result in both short- and long-term complications. The company's Mission is inspired by the desire to introduce more stability and predictability with technology that helps push diabetes management into the background. For many employees, the Mission hits close to home—over 70% of those surveyed have a personal connection to diabetes. That includes Key Payton, who has been with the company for over a decade and was diagnosed with type 1 diabetes in 1960. "When I was just three years old, doctors told my parents I likely wouldn't live past 10. But here I am, 65 years later, defying the odds and living my best life. I've experienced firsthand how the company has transformed diabetes care and personally helped me beat those early odds in astounding ways," said Payton. "I'm forever grateful for the hope and support they've given me every day for nearly three decades. Today, I'm a proud user of the MiniMed™ 780G system,** and my Time in Range § has never been better. I'm finally sleeping through the night and worrying less about my diabetes — it's freeing." Based in Northridge, California, the Diabetes business is a passionate team of more than 8,000 employees dedicated to pushing the boundaries of innovation, developing breakthrough technologies that reduce burden, enhance quality of life, improve health outcomes, and redefine standards of care. Medtronic is targeting completion of the planned separation within 18 months of the initial announcement, subject to customary conditions and legal requirements including consultations with works councils and other employee representative bodies. Cautions Regarding Forward Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to Medtronic's ability to satisfy the necessary conditions to consummate the separation of its Diabetes business on a timely basis or at all, Medtronic's ability to successfully separate its Diabetes business and realize the anticipated benefits from the separation (including consummating the transaction on a basis that is generally tax-free to shareholders), MiniMed's ability to succeed as a standalone publicly traded company, competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, geopolitical conflicts, changing global trade policies, general economic conditions, and other risks and uncertainties described in the company's periodic reports on file with the U.S. Securities and Exchange Commission including the most recent Annual Report on Form 10-K of Medtronic. In some cases, you can identify these statements by forward-looking words or expressions, such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "looking ahead," "may," "plan," "possible," "potential," "project," "should," "going to," "will," and similar words or expressions, the negative or plural of such words or expressions and other comparable terminology. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements or any of the information contained in this press release, including to reflect future events or circumstances. While a split-off is Medtronic's current preferred separation structure, a final decision has not been reached at this time. The separation is expected to occur through a series of capital markets transactions, which may include a spin-off, split-off, offering, or combination thereof, of the company's remaining shareholding in MiniMed. **MiniMed™ 780G system is for type 1 ages 7 and over. Prescription required. WARNING: Do not use SmartGuard™ feature for people who require less than 8 units or more than 250 units of insulin/day. For details, see § Refers to SmartGuard™ feature. Individual results may vary. Ryan Weispfenning Investor Relations +1-763-505-4626 SOURCE Medtronic plc
Yahoo
22-05-2025
- Business
- Yahoo
Medtronic to split diabetes business into separate entity, targets IPO
Medtronic has announced plans to separate out its diabetes business into a new standalone company. The separation will serve to create an 'independent, scaled leader in diabetes' that boasts an ecosystem of insulin management devices including pumps and continuous glucose monitors, Medtronic said. The split will also in turn create a wholly 'more focused' Medtronic, with a more simplified portfolio in high margin growth markets. Medtronic's shares on the New York Stock Exchange (NYSE) fell by 2.27% at market close following the announcement on 21 May. 'It's going to give Medtronic some significant capital to increase their presence in other, more interventional, areas, especially in cardiovascular. They have a history of inorganic expansion, so I can see this as providing ammunition for a big acquisition in 2026-7,' said Dr Andrew Thompson, director of therapy research and analysis in medical devices for GlobalData reacting to the separation. With a preferred path of an initial public offering (IPO) and subsequent split-off, Medtronic anticipates the split to complete within 18 months through a series of capital markets transactions. Medtronic describes the vision for the new diabetes standalone as being a 'scaled, direct-to-consumer' business that is positioned positioned as 'the only company to commercialise a complete intensive insulin management ecosystem'. In addition, Medtronic anticipates that the separation will enable more focused investment into the new diabetes business's pipeline and manufacturing scale and automation, thereby positioning it for success in Automated Insulin Delivery and Smart MDI as it drives margin expansion over time. 'As for the spin out, it might not remain a spin out for that long. Medtronic recently gained US Food and Drug Administration (FDA) 510k approval on a new CGM sensor that is interoperable with Abbott devices, and both companies have an agreement. Abbott might be wishing to preserve that relationship. I wonder if the standalone company might be something that is a joint venture between the two,' Thompson commented. Medtronic's diabetes business represented 8% of its total revenues in FY 2025 at around $2.75bn, denoting a 10.7% year over year rise. However, the business unit's performance has recently been hampered by the FDA Class I recall of its MiniMed insulin pump system in 2024, resulting in a dent to consumer confidence amid tightening competition and mounting operational losses for the unit since 2022. According to a GlobalData market model, in 2024, Medtronic held respective US market share of around 6% and 7.3% in the insulin delivery and glucose monitoring segments. Medtronic Diabetes, umbrellaed under the wider Medtronic business, currently has 8,000 employees globally, with Que Dallara currently serving as the unit's executive vice president and CEO. Dallara is set to continue in such role once the diabetes unit has spun out. Medtronic CEO and chairman, Geoff Martha said: 'Active portfolio management is an important lever to delivering on our ongoing growth and success, and this decision shifts the Medtronic portfolio to have intense focus on our highest margin growth drivers where we have our strongest core competencies. 'I'm also excited about what the future holds for the Diabetes business. Que's impressive track record in driving growth and innovation has set Diabetes on a path to continued success, ensuring the needs of individuals with diabetes are met around the globe." Medtronic anticipates that its diabetes business separation will improve its adjusted gross margin by around 50 basis points, adjusted operating margins by around 100 basis points, and be 'immediately accretive' to adjusted EPS. "Medtronic to split diabetes business into separate entity, targets IPO" was originally created and published by Medical Device Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
