3M Co. (MMM) Raised to Hold at Zacks Investment Research
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.”
Several other analysts have also recently commented on MMM. Jefferies Group restated a “buy” rating on shares of 3M in a research note on Thursday, August 4th. Credit Suisse Group AG restated an “outperform” rating and issued a $186.00 target price (up previously from $178.00) on shares of 3M in a research note on Thursday, July 28th. Deutsche Bank AG restated a “hold” rating and issued a $164.00 target price on shares of 3M in a research note on Thursday, August 25th. Morgan Stanley restated a “sell” rating and issued a $168.00 target price on shares of 3M in a research note on Tuesday, August 23rd. Finally, Sanford C. Bernstein restated a “market perform” rating on shares of 3M in a research note on Monday, June 27th. Two equities 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. The stock presently has an average rating of “Hold” and a consensus target price of $167.11.
3M (NYSE:MMM) opened at 171.68 on Wednesday. The stock has a market cap of $103.76 billion, a PE ratio of 21.91 and a beta of 0.99. The firm has a 50-day moving average of $178.07 and a 200-day moving average of $173.12. 3M has a 12-month low of $134.64 and a 12-month high of $182.27.
3M (NYSE:MMM) last released its earnings results on Tuesday, July 26th. The company reported $2.08 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 company earned $7.70 billion during the quarter, compared to analysts’ expectations of $7.73 billion. During the same quarter last year, the business earned $2.02 EPS. The business’s revenue was down .3% on a year-over-year basis. Equities analysts predict that 3M will post $8.21 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Monday, September 12th. Stockholders of record on Friday, August 19th were issued a dividend of $1.11 per share. The ex-dividend date of this dividend was Wednesday, August 17th. This represents a $4.44 dividend on an annualized basis and a dividend yield of 2.59%. 3M’s dividend payout ratio (DPR) is presently 56.63%.
In other news, VP Khandpur K. Ashish sold 1,679 shares of 3M stock in a transaction dated Friday, July 29th. The shares were sold at an average price of $178.39, for a total transaction of $299,516.81. Following the completion of the sale, the vice president now directly owns 1,011 shares in the company, valued at $180,352.29. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider James L. Bauman sold 9,066 shares of 3M stock in a transaction dated 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 owns 10,834 shares of the company’s stock, valued at $1,933,002.28. The disclosure for this sale can be found here. Insiders own 0.58% of the company’s stock.
Large investors have recently modified their holdings of the company. Lodestar Investment Counsel LLC IL boosted its stake in 3M by 8.4% in the first quarter. Lodestar Investment Counsel LLC IL now owns 79,270 shares of the company’s stock valued at $13,209,000 after buying an additional 6,122 shares in the last quarter. Murphy Pohlad Asset Management LLC boosted its stake in 3M by 3.4% in the first quarter. Murphy Pohlad Asset Management LLC now owns 12,805 shares of the company’s stock valued at $2,133,000 after buying an additional 421 shares in the last quarter. Stokes & Hubbell Capital Management LLC boosted its stake in 3M by 7.9% in the first quarter. Stokes & Hubbell Capital Management LLC now owns 2,485 shares of the company’s stock valued at $414,000 after buying an additional 183 shares in the last quarter. Tompkins Financial Corp boosted its stake in 3M by 4.1% in the first quarter. Tompkins Financial Corp now owns 16,905 shares of the company’s stock valued at $2,817,000 after buying an additional 667 shares in the last quarter. Finally, Carroll Financial Associates Inc. boosted its stake in 3M by 2.3% in the first quarter. Carroll Financial Associates Inc. now owns 12,558 shares of the company’s stock valued at $2,092,000 after buying an additional 286 shares in the last quarter. Institutional investors and hedge funds own 65.67% of the company’s stock.
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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