Insider Trading Report: Medtronic PLC (MDT)

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  • Richard Anderson, a director at Medtronic PLC (MDT), recently added 4,607 shares. The buy came to a total purchase price of nearly $51,000, and increased the director’s stake by 4.4 percent.

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  • This is the second insider buy of 2020, following a buy from the company CEO back in February. Insiders have been a mix of buyers and sellers this year. The share price of the company has held up relatively well in the past year.

    Although sales and earnings are slightly off in the past year, the medical device manufacturer has managed to continue making a profit. And the company’s balance sheet is strong, with only $15 billion in net debt, so it’s likely the company can weather the current economic storm and grow market share as smaller and more leveraged players fall by the wayside.

    Action to take: While the insider trading here is mixed, and while shares are a tad expensive relative to earnings, there’s still an attractive play going forward. Investors can buy shares here and lock in a 2.1 percent dividend yield.

    Traders can likely do better. The March 2021 $110 calls are right at-the-money. Trading for just under $7.50 based on the bid/ask spread, the calls are leveraged for a move higher in shares in the next few months. Traders should look for a move higher leading to high-double-digit gains when looking for a profit.

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