Both Medtronic and Edwards Lifesciences are in the midst of a rough start to the week. Unfortunately, both of these stocks started the day off on declines and have made their way well into the red. We believe that we’ve uncovered the reason for the movement. Below, we’ll talk about what we’re seeing from the stocks, why, and what we’ll be watching for with regard to MDT and EW ahead.
MDT And EW Aren’t Off To A Strong Week
As mentioned above, both Medtronic and Edwards Lifesciences are off to a rough start to the week today, as the trading session has proven to be filled with declines. Unfortunately, both stocks have fallen well into the red. Currently (11:49), MDT and EW are trading at $79.62 and $89.49 respectively. This comes after respective losses of $2.45 per share and $1.52 per share, or 2.99% and 1.67% thus far today.
Why We’re Seeing The Declines
As usual, as soon as we noticed the declines on the stocks, the CNA Finance team started digging to see what was happening. While there was no fundamental news released by either of the companies, we did find something. At the moment, there’s a rumor circling social media, and it’s not a good one.
A search on your favorite social network will likely yield a result that has to do with Valves these companies are involved in. According to the rumors, there is a German paper stating that the valves raise the risk of death in patients that are less sick. If this proves to be true, it could be a big hit to MDT and EW. As a result, investors are reacting.
What We’ll Be Watching For Ahead
First and foremost, keep in mind that this is just a rumor at the moment. The fact that Medtronic and Edwards Lifesciences are both down under 5% suggests that investors aren’t overreacting, which is a good thing. Nonetheless, we’ll be watching MDT and EW closely for any news surrounding this story. As always, we’ll bring you the news as soon as we uncover it!
Update: Unfortunately this is no longer a rumor. Replacement Aortic Valves provided by MDT and EW are raising the risk of death in less sick patients.
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