3M Co. (NYSE:MMM) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Wednesday.
According to Zacks, “Weak revenue growth and intense competition are likely to peg back 3M’s profitability to some extent. 3M is also facing increased pension expenses as its workforce begins to retire. A sustained strength in the U.S. dollar will likely continue to negatively impact the earnings in the short-term. In addition, the company is susceptible to high commodity price risks. Nevertheless, 3M has a positive earnings history in the trailing four quarters, beating estimates thrice. Earnings estimates have also remained steady over the last month. The company has provided a focused roadmap about its broad financial objectives for the next five years, covering 2016 through 2020. 3M expects its restructuring efforts to yield $500 to $700 million in annual operational savings by 2020. At the same time, 3M intends to invest $1.8 billion in R&D in 2016 for higher organic growth and complement it through strategic acquisitions.”
A number of other equities analysts also recently commented on MMM. Credit Suisse Group AG restated a “buy” rating and set a $195.00 target price on shares of 3M in a report on Friday, September 16th. Jefferies Group upped their target price on 3M from $190.00 to $210.00 and gave the company a “buy” rating in a report on Tuesday, July 19th. Deutsche Bank AG restated a “hold” rating and set a $164.00 target price on shares of 3M in a report on Thursday, August 25th. Sanford C. Bernstein restated a “market perform” rating on shares of 3M in a report on Monday, June 27th. Finally, Morgan Stanley restated a “sell” rating and set a $168.00 target price on shares of 3M in a report on Tuesday, August 23rd. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and three have given a buy rating to the company’s stock. 3M has a consensus rating of “Hold” and a consensus price target of $167.11.
Shares of 3M (NYSE:MMM) opened at 171.87 on Wednesday. 3M has a 1-year low of $134.64 and a 1-year high of $182.27. The stock has a 50 day moving average of $177.64 and a 200 day moving average of $173.10. The company has a market cap of $103.88 billion, a price-to-earnings ratio of 21.94 and a beta of 0.99.
3M (NYSE:MMM) last released its quarterly earnings data on Tuesday, July 26th. The company reported $2.08 earnings per share for the quarter, beating analysts’ consensus estimates of $2.07 by $0.01. The firm earned $7.70 billion during the quarter, compared to analyst estimates of $7.73 billion. 3M had a return on equity of 41.84% and a net margin of 16.29%. The business’s quarterly revenue was down .3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.02 earnings per share. Analysts predict that 3M will post $8.21 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 12th. Investors of record on Friday, August 19th were given a $1.11 dividend. The ex-dividend date of this dividend was Wednesday, August 17th. This represents a $4.44 annualized dividend and a yield of 2.59%. 3M’s payout ratio is 56.63%.
In related news, insider James L. Bauman sold 9,066 shares of the stock in a transaction that occurred on Monday, August 1st. The stock was sold at an average price of $178.42, for a total value of $1,617,555.72. Following the completion of the transaction, the insider now directly owns 10,834 shares in the company, valued at $1,933,002.28. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Paul A. Keel sold 3,180 shares of the stock in a transaction that occurred on Friday, July 29th. The stock was sold at an average price of $178.39, for a total value of $567,280.20. Following the completion of the transaction, the insider now owns 9,961 shares of the company’s stock, valued at $1,776,942.79. The disclosure for this sale can be found here. 0.58% of the stock is owned by corporate insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of MMM. Independence Advisors LLC raised its position in shares of 3M by 10.2% in the third quarter. Independence Advisors LLC now owns 1,275 shares of the company’s stock valued at $225,000 after buying an additional 118 shares during the last quarter. Hefty Wealth Partners raised its position in 3M by 18.5% in the third quarter. Hefty Wealth Partners now owns 6,017 shares of the company’s stock valued at $1,060,000 after buying an additional 940 shares in the last quarter. Private Asset Management Inc. raised its position in 3M by 4.9% in the third quarter. Private Asset Management Inc. now owns 2,138 shares of the company’s stock valued at $377,000 after buying an additional 100 shares in the last quarter. Acropolis Investment Management LLC raised its position in 3M by 0.8% in the third quarter. Acropolis Investment Management LLC now owns 13,202 shares of the company’s stock valued at $2,327,000 after buying an additional 111 shares in the last quarter. Finally, Telemus Capital LLC raised its position in 3M by 2.1% in the third quarter. Telemus Capital LLC now owns 22,795 shares of the company’s stock valued at $4,017,000 after buying an additional 469 shares in the last quarter. Institutional investors own 65.67% of the company’s stock.
3M Company is a technology company. The Company operates through five segments. Its Industrial segment serves markets, such as automotive original equipment manufacturer and automotive aftermarket, electronics, appliance, paper and printing, packaging, food and beverage, and construction. Its Safety and Graphics segment serves markets for the safety, security and productivity of people, facilities and systems.
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