3M Co. (MMM) Upgraded to “Hold” at Zacks Investment Research
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.”
Other analysts have also issued research reports about the stock. Credit Suisse Group AG reiterated a buy rating and issued a $195.00 target price on shares of 3M in a research note on Friday, September 16th. Jefferies Group increased their price target on shares of 3M from $190.00 to $210.00 and gave the company a buy rating in a research report on Tuesday, July 19th. Deutsche Bank AG restated a hold rating and set a $164.00 price target on shares of 3M in a research report on Thursday, August 25th. Sanford C. Bernstein restated a market perform rating on shares of 3M in a research report on Monday, June 27th. Finally, Morgan Stanley restated a sell rating and set a $168.00 price target on shares of 3M in a research report on Tuesday, August 23rd. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating and three have given a buy rating to the company. 3M currently has a consensus rating of Hold and a consensus price target of $167.11.
3M (NYSE:MMM) traded down 0.31% during trading on Wednesday, reaching $171.86. 939,352 shares of the company’s stock traded hands. The company’s 50 day moving average is $177.88 and its 200-day moving average is $173.11. 3M has a 52-week low of $134.64 and a 52-week high of $182.27. The stock has a market cap of $103.87 billion, a price-to-earnings ratio of 21.93 and a beta of 0.99.
3M (NYSE:MMM) last posted its earnings results 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. 3M had a net margin of 16.29% and a return on equity of 41.84%. The firm earned $7.70 billion during the quarter, compared to analyst estimates of $7.73 billion. During the same quarter in the prior year, the business posted $2.02 EPS. The business’s revenue was down .3% compared to the same quarter last year. On average, analysts anticipate that 3M will post $8.21 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Monday, September 12th. Shareholders 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 2.58%. The ex-dividend date was Wednesday, August 17th. 3M’s dividend payout ratio is currently 56.63%.
In other news, insider Paul A. Keel sold 3,180 shares of 3M stock in a transaction dated 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 approximately $1,776,942.79. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP Khandpur K. Ashish sold 1,679 shares of 3M stock in a transaction dated Friday, July 29th. The stock was sold at an average price of $178.39, for a total value of $299,516.81. Following the completion of the transaction, the vice president now directly owns 1,011 shares of the company’s stock, valued at approximately $180,352.29. The disclosure for this sale can be found here. Company insiders own 0.58% of the company’s stock.
Several institutional investors have recently bought and sold shares of MMM. Cable Hill Partners LLC raised its position in 3M by 5.0% in the second quarter. Cable Hill Partners LLC now owns 583 shares of the company’s stock valued at $103,000 after buying an additional 28 shares in the last quarter. Reilly Financial Advisors LLC increased its stake in 3M by 38.1% in the second quarter. Reilly Financial Advisors LLC now owns 645 shares of the company’s stock valued at $113,000 after buying an additional 178 shares during the last quarter. CenturyLink Investment Management Co acquired a new stake in 3M during the second quarter valued at approximately $116,000. Jackson Grant Investment Advisers Inc. increased its stake in 3M by 7.5% in the second quarter. Jackson Grant Investment Advisers Inc. now owns 706 shares of the company’s stock valued at $124,000 after buying an additional 49 shares during the last quarter. Finally, Cascade Investment Advisors Inc. acquired a new stake in 3M during the second quarter valued at approximately $125,000. 65.67% of the stock is owned by hedge funds and other institutional investors.
3M Company Profile
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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