5 Biggest Medical Device Companies in the World

2. Medtronic plc (NYSE:MDT)

Market Cap as of November 18: $106.25 B
Number of Hedge Fund Holders: 55

Medtronic plc (NYSE:MDT) is a global company that develops, produces, and distributes device-based medical therapies to healthcare systems. On November 15, Medtronic plc (NYSE:MDT) unveiled the Medtronic Extended infusion set in the United States, the first and only infusion set with a label allowing for up to seven-day wear.

Pito Chickering, an analyst at Deutsche Bank, downgraded Medtronic plc (NYSE:MDT) from ‘Buy’ to ‘Hold’ on November 16 with a price objective of $85, down from $121. According to Chickering, the firm had a challenging year due to several product difficulties in Q4 of 2021 and economic headwinds that influenced earnings growth in fiscal 2023.

By the end of the third quarter of 2022, Insider Monkey identified 55 hedge funds that had stakes in Medtronic plc (NYSE:MDT). The total value of these stakes was over $2.65 billion. As of September 30, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital is the lead stakeholder in Medtronic plc (NYSE:MDT). The fund owns more than 7.16 million shares of stock, which are worth $578.31 million.

Artisan Partners shared its outlook on Medtronic plc (NYSE:MDT) in its Q2 2022 investor letter. Here’s what the firm said:

“While Medtronic plc (NYSE:MDT)’s procedure volumes recovered to pre-COVID levels, foreign exchange headwinds overshadowed underlying business value growth, and supply chain issues, including those related to China’s lockdowns, impacted the surgical innovations business. The downdraft in the market during the quarter led to a pile-on. We are being patient with our investment in Medtronic because the company continues to be a strong free cash flow generator and is attractively priced, with a FCF yield of 5% on trailing one-year numbers and a dividend yield of 3%. Medtronic is under new management that is focused on growing the company’s top line, reinvesting in R&D, returning cash to shareholders and growing operating profits. We like new management’s strategy and believe new product launches, increased surgery visits, sound M&A transactions and a shareholder returns focus, should reinvigorate the business. We added to our positions in these health care names during the quarter.”