Zacks Investment Research downgraded shares of 3M (NYSE:MMM) from a buy rating to a hold rating in a research note issued to investors on Wednesday morning.
According to Zacks, “3M's global footprint, diversified product portfolio and the ability to penetrate in different markets have been its forte. At the same time, the company is continuing with its portfolio restructuring efforts by divesting assets that no longer fit in its strategy and continues to make investments in other lucrative markets. Portfolio management, investment in innovation and business transformation are the three key levers on which 3M intends to focus. 3M has outperformed the industry in the past three months. However, given its international presence, adverse foreign currency translations are likely to affect 3M’s ability to realize projected growth rates in sales and earnings. 3M is also facing increased pension expenses as its workforce begins to retire. The related extra costs are a drag on the bottom line. Sustained dollar strength remains another headwind as exports consume a significant part of the company’s operations.”
Several other equities research analysts have also commented on MMM. Morgan Stanley boosted their target price on shares of 3M from $190.00 to $201.00 and gave the stock an underweight rating in a research report on Monday, October 2nd. Royal Bank of Canada boosted their price objective on shares of 3M from $205.00 to $209.00 and gave the stock a sector perform rating in a research report on Wednesday, October 25th. Jefferies Group boosted their price objective on shares of 3M to $262.00 and gave the stock a buy rating in a research report on Wednesday, October 25th. Stifel Nicolaus boosted their price objective on shares of 3M from $220.00 to $244.00 and gave the stock a hold rating in a research report on Wednesday, October 25th. Finally, Credit Suisse Group reiterated an outperform rating and issued a $260.00 price objective (up from $238.00) on shares of 3M in a research report on Wednesday, October 25th. Three equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and nine have assigned a buy rating to the company’s stock. The stock presently has an average rating of Hold and a consensus price target of $231.59.
3M (NYSE:MMM) last issued its earnings results on Tuesday, October 24th. The conglomerate reported $2.33 EPS for the quarter, topping the consensus estimate of $2.21 by $0.12. The company had revenue of $8.17 billion for the quarter, compared to analyst estimates of $7.93 billion. 3M had a net margin of 17.71% and a return on equity of 48.55%. The business’s revenue was up 6.0% on a year-over-year basis. During the same period in the previous year, the firm earned $2.15 EPS. equities research analysts forecast that 3M will post 9.09 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, December 12th. Investors of record on Friday, November 24th were given a $0.0118 dividend. The ex-dividend date of this dividend was Wednesday, November 22nd. This represents a $0.05 annualized dividend and a dividend yield of 0.02%. 3M’s dividend payout ratio is presently 52.46%.
In related news, CFO Nicholas C. Gangestad sold 4,004 shares of the business’s stock in a transaction dated Friday, October 27th. The shares were sold at an average price of $233.84, for a total value of $936,295.36. Following the completion of the transaction, the chief financial officer now owns 25,805 shares of the company’s stock, valued at approximately $6,034,241.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Chairman Inge G. Thulin sold 6,823 shares of the business’s stock in a transaction dated Friday, October 27th. The shares were sold at an average price of $233.14, for a total transaction of $1,590,714.22. Following the completion of the transaction, the chairman now directly owns 196,906 shares of the company’s stock, valued at approximately $45,906,664.84. The disclosure for this sale can be found here. Insiders sold a total of 22,804 shares of company stock worth $5,303,706 over the last quarter. Insiders own 0.58% of the company’s stock.
A number of hedge funds have recently made changes to their positions in MMM. Private Advisor Group LLC raised its stake in 3M by 26.0% in the 1st quarter. Private Advisor Group LLC now owns 44,553 shares of the conglomerate’s stock valued at $8,480,000 after purchasing an additional 9,184 shares during the last quarter. Congress Asset Management Co. MA raised its stake in 3M by 2.3% in the 1st quarter. Congress Asset Management Co. MA now owns 26,032 shares of the conglomerate’s stock valued at $4,981,000 after purchasing an additional 597 shares during the last quarter. Madison Investment Holdings Inc. raised its stake in 3M by 1.1% in the 1st quarter. Madison Investment Holdings Inc. now owns 122,404 shares of the conglomerate’s stock valued at $23,420,000 after purchasing an additional 1,372 shares during the last quarter. Aberdeen Asset Management PLC UK raised its stake in 3M by 6.2% in the 1st quarter. Aberdeen Asset Management PLC UK now owns 175,093 shares of the conglomerate’s stock valued at $33,500,000 after purchasing an additional 10,222 shares during the last quarter. Finally, Chatham Capital Group Inc. increased its stake in shares of 3M by 7.1% during the 1st quarter. Chatham Capital Group Inc. now owns 1,500 shares of the conglomerate’s stock valued at $287,000 after acquiring an additional 100 shares during the last quarter. 66.20% of the stock is owned by hedge funds and other institutional investors.
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3M Company Profile
3M Company is a technology company. It operates through five segments. The Industrial segment serves a range of markets, such as automotive original equipment manufacturer and automotive aftermarket, , appliance, paper and printing, packaging, food and beverage, and construction. The Safety and Graphics segment serves a range of markets for the safety, security and productivity of people, facilities and systems.
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