3M Co. (MMM) Downgraded by Zacks Investment Research to “Sell”
According to Zacks, “Weak revenue growth and intense competition are likely to peg back 3M’s profitability to some extent. In order to survive, 3M has to make continuous investments in value drivers that act as a hedge against stiff competition, which further erode margins. 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. 3M has a positive earnings history in the trailing four quarters, beating estimates thrice. Earnings estimates have also remained steady over the last month. However, 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.”
Several other research firms have also recently issued reports on MMM. Jefferies Group increased their price objective on 3M from $190.00 to $210.00 and gave the stock a buy rating in a research report on Tuesday, July 19th. Credit Suisse Group AG increased their price objective on 3M from $186.00 to $195.00 and gave the stock an outperform rating in a research report on Wednesday, September 7th. Deutsche Bank AG reiterated a hold rating and issued a $164.00 price objective on shares of 3M in a research report on Thursday, August 25th. Morgan Stanley reiterated a sell rating and issued a $168.00 price objective on shares of 3M in a research report on Tuesday, August 23rd. Finally, Sanford C. Bernstein restated a market perform rating on shares of 3M in a research report on Monday, June 27th. Three equities research analysts have rated the stock with a sell rating, seven have given a hold rating and three have issued a buy rating to the company’s stock. The company currently has a consensus rating of Hold and a consensus target price of $167.11.
Shares of 3M (NYSE:MMM) traded up 0.48% on Tuesday, hitting $177.14. 325,670 shares of the stock traded hands. The firm’s 50 day moving average is $178.73 and its 200-day moving average is $172.69. The company has a market cap of $107.06 billion, a PE ratio of 22.61 and a beta of 1.07. 3M has a 12 month low of $134.64 and a 12 month high of $182.27.
3M (NYSE:MMM) last released its quarterly earnings data on Tuesday, July 26th. The company reported $2.08 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $2.07 by $0.01. The firm earned $7.70 billion during the quarter, compared to analysts’ expectations of $7.73 billion. 3M had a return on equity of 41.84% and a net margin of 16.29%. 3M’s revenue was down .3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.02 earnings per share. Equities analysts predict that 3M will post $8.21 earnings per share for the current year.
The business also recently declared a quarterly dividend, which was paid on Monday, September 12th. Investors of record on Friday, August 19th were given a dividend of $1.11 per share. This represents a $4.44 annualized dividend and a yield of 2.52%. The ex-dividend date of this dividend was Wednesday, August 17th. 3M’s dividend payout ratio (DPR) is presently 56.63%.
In other 3M news, insider James L. Bauman sold 9,066 shares of 3M stock in a transaction that occurred on Monday, August 1st. The stock was sold at an average price of $178.42, for a total transaction of $1,617,555.72. Following the sale, the insider now directly owns 10,834 shares in the company, valued at approximately $1,933,002.28. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Khandpur K. Ashish sold 1,679 shares of 3M 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 $299,516.81. Following the sale, the vice president now owns 1,011 shares in the company, valued at $180,352.29. The disclosure for this sale can be found here. Corporate insiders own 0.58% of the company’s stock.
A number of large investors have recently bought and sold shares of MMM. Emerald Acquisition Ltd. acquired a new stake in 3M during the second quarter valued at about $179,251,000. Vanguard Group Inc. increased its stake in 3M by 2.0% in the second quarter. Vanguard Group Inc. now owns 42,183,048 shares of the company’s stock valued at $7,387,096,000 after buying an additional 822,712 shares in the last quarter. Bank of Montreal Can acquired a new stake in 3M during the second quarter valued at about $135,349,000. Alliancebernstein L.P. increased its stake in 3M by 44.1% in the second quarter. Alliancebernstein L.P. now owns 1,953,252 shares of the company’s stock valued at $342,053,000 after buying an additional 598,174 shares in the last quarter. Finally, Jarislowsky Fraser Ltd increased its stake in 3M by 68.3% in the second quarter. Jarislowsky Fraser Ltd now owns 1,337,030 shares of the company’s stock valued at $147,298,000 after buying an additional 542,697 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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