Traders Purchase High Volume of 3M Call Options (NYSE:MMM)

3M Company (NYSE:MMM) was the recipient of some unusual options trading activity on Thursday. Traders acquired 34,496 call options on the stock. This represents an increase of approximately 263% compared to the average daily volume of 9,490 call options.

Institutional Trading of 3M

A number of institutional investors have recently bought and sold shares of the business. Security National Bank of SO Dak bought a new stake in 3M in the second quarter valued at about $32,000. DecisionPoint Financial LLC raised its position in shares of 3M by 2,387.5% in the 3rd quarter. DecisionPoint Financial LLC now owns 199 shares of the conglomerate’s stock valued at $32,000 after acquiring an additional 191 shares during the period. Trellis Wealth Advisors LLC bought a new position in 3M during the 3rd quarter worth approximately $33,000. Latitude Advisors LLC bought a new position in 3M during the 3rd quarter worth approximately $34,000. Finally, Compass Financial Management LLC acquired a new position in 3M during the second quarter valued at approximately $38,000. Institutional investors and hedge funds own 65.25% of the company’s stock.

3M Trading Down 1.3%

3M stock traded down $2.48 during trading hours on Thursday, reaching $186.40. 2,311,335 shares of the company’s stock traded hands, compared to its average volume of 3,699,824. The company has a debt-to-equity ratio of 3.01, a quick ratio of 1.06 and a current ratio of 1.41. 3M has a fifty-two week low of $139.34 and a fifty-two week high of $196.90. The firm has a market capitalization of $96.32 billion, a price-to-earnings ratio of 27.78, a PEG ratio of 2.47 and a beta of 1.01. The firm’s 50 day moving average is $169.98 and its 200-day moving average is $162.23.

3M (NYSE:MMM) last issued its earnings results on Tuesday, October 20th. The conglomerate reported $2.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.38 by $0.12. 3M had a net margin of 14.01% and a return on equity of 123.11%. The company had revenue of $6.60 billion for the quarter, compared to analyst estimates of $6.61 billion. During the same quarter last year, the firm earned $2.19 EPS. The company’s revenue for the quarter was up 1.5% on a year-over-year basis. On average, analysts predict that 3M will post 9.14 earnings per share for the current year.

3M declared that its Board of Directors has initiated a share repurchase plan on Wednesday, November 4th that allows the company to buy back $6 billion in shares. This repurchase authorization allows the conglomerate to buy up to 6.6% of its shares through open market purchases. Share repurchase plans are generally a sign that the company’s board believes its shares are undervalued.

3M Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 11th. Shareholders of record on Friday, November 13th will be paid a $0.78 dividend. The ex-dividend date of this dividend is Friday, November 13th. This represents a $3.12 dividend on an annualized basis and a yield of 1.7%. 3M’s dividend payout ratio (DPR) is presently 46.50%.

Analyst Ratings Changes

A number of brokerages have recently issued reports on MMM. UBS Group set a $230.00 target price on shares of 3M in a research report on Wednesday, November 4th. HSBC raised shares of 3M to a “strong-buy” rating in a report on Thursday, October 22nd. Mizuho boosted their price objective on shares of 3M from $160.00 to $180.00 and gave the stock a “neutral” rating in a research report on Thursday, July 23rd. Jefferies Financial Group reaffirmed a “hold” rating and set a $186.00 price objective on shares of 3M in a report on Wednesday, October 21st. Finally, JPMorgan Chase & Co. increased their price objective on 3M from $191.00 to $210.00 and gave the company an “overweight” rating in a research report on Wednesday, November 4th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, 3M has a consensus rating of “Hold” and a consensus target price of $190.07.

About 3M

3M is a diversified science and manufacturing company that develops products for businesses and consumers. Its offerings include workplace safety equipment, adhesives and abrasives, filtration materials, automotive and electronics components, and home and office products such as Post-it Notes and Scotch brand tapes. Founded in 1902 as the Minnesota Mining and Manufacturing Company, 3M began as a mining venture before expanding into materials science and industrial manufacturing. The company adopted the name 3M in 2002 and is headquartered in St. Paul, Minnesota.