5 Best Diabetes Stocks To Buy Now

3. Medtronic plc (NYSE:MDT)

Number of Hedge Fund Holders: 68

As a dividend aristocrat that has continuously increased dividends for the past 44 years and delivered passive income to shareholders, Medtronic plc (NYSE:MDT) ranks third on our list of the 10 best diabetes stocks to buy now. The Irish medical device company offers a decent dividend yield of 2.05% and has a payout ratio of 44.15%.

Medtronic plc (NYSE:MDT) manufactures a variety of continuous monitoring glucose (CGM) systems and insulin pumps. The company’s diabetes segment revenue increased by 2% to $572 million in the first quarter of fiscal 2022, driven by continuous demand for insulin pumps globally. Overall, the medical device company’s revenue increased by 23% year on year to $8 billion in the quarter that ended in June.

The Dublin-based medical device company has recently been in active discussions to buy Israeli startup Triple Jump for $300 million, after initially investing $20 million last year. Triple Jump was founded in 2015 and is developing insulin pump therapy with smartphone connectivity. Following this announcement, Piper Sandler analyst Matt O’Brien kept a $152 price target on Medtronic plc (NYSE:MDT) with an Overweight rating on October 18. 

Diamond Hill Capital is one of the biggest stakeholders of Medtronic plc (NYSE:MDT) as of the end of the second quarter, according to the data tracked by Insider Monkey. Overall, 68 funds were bullish on Medtronic plc (NYSE:MDT) by the end of the June quarter, compared to 65 in the previous quarter.