Zacks Investment Research downgraded shares of 3M (NYSE:MMM) from a hold rating to a sell rating in a research report released on Tuesday.
According to Zacks, “Over the past three months, 3M's shares have underperformed and look overvalued compared with the industry. Escalating cost has become a major cause of concern for the company. High retirement benefit cost, inflation in the prices of major inputs and escalating freight expenses might continue to augment the company's aggregate cost, in turn, hurting its near-term profitability. Notably, 3M has lowered its earnings guidance for 2018. Also, other headwinds like stiff competition from local players and supply contract issues remain causes of concern. Over the past 60 days, the Zacks Consensus Estimate for the stock has moved south for 2018 and 2019.”
Several other equities analysts also recently issued reports on MMM. Vetr downgraded shares of 3M from a buy rating to a hold rating and set a $251.35 price target for the company. in a report on Tuesday, February 27th. ValuEngine downgraded shares of 3M from a buy rating to a hold rating in a report on Friday, March 23rd. Barclays reduced their price target on shares of 3M from $235.00 to $230.00 and set an underweight rating for the company in a report on Monday, March 26th. Citigroup set a $284.00 price target on shares of 3M and gave the company a buy rating in a report on Saturday, March 24th. Finally, Stifel Nicolaus reissued a hold rating and set a $225.00 price target (down previously from $251.00) on shares of 3M in a report on Monday, April 2nd. Six research analysts have rated the stock with a sell rating, four have issued a hold rating, eight have issued a buy rating and one has issued a strong buy rating to the company. 3M currently has a consensus rating of Hold and an average target price of $240.65.
3M stock opened at $196.72 on Tuesday. The firm has a market capitalization of $115.72 billion, a price-to-earnings ratio of 21.45, a price-to-earnings-growth ratio of 1.85 and a beta of 1.16. The company has a debt-to-equity ratio of 1.11, a current ratio of 1.65 and a quick ratio of 1.17. 3M has a 12 month low of $191.44 and a 12 month high of $259.77.
3M (NYSE:MMM) last released its quarterly earnings data on Tuesday, April 24th. The conglomerate reported $2.50 EPS for the quarter, hitting analysts’ consensus estimates of $2.50. The firm had revenue of $8.28 billion during the quarter, compared to the consensus estimate of $8.21 billion. 3M had a net margin of 12.83% and a return on equity of 50.11%. The firm’s revenue was up 7.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.16 earnings per share. analysts anticipate that 3M will post 10.37 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 12th. Investors of record on Friday, May 18th were paid a dividend of $1.36 per share. This represents a $5.44 dividend on an annualized basis and a dividend yield of 2.77%. The ex-dividend date was Thursday, May 17th. 3M’s dividend payout ratio is currently 59.32%.
Several hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. raised its stake in shares of 3M by 0.8% during the first quarter. BlackRock Inc. now owns 39,148,990 shares of the conglomerate’s stock valued at $8,593,985,000 after purchasing an additional 320,406 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of 3M by 5.1% during the fourth quarter. Geode Capital Management LLC now owns 6,901,534 shares of the conglomerate’s stock valued at $1,621,309,000 after purchasing an additional 332,651 shares in the last quarter. Bank of New York Mellon Corp raised its stake in shares of 3M by 0.5% during the fourth quarter. Bank of New York Mellon Corp now owns 6,379,814 shares of the conglomerate’s stock valued at $1,501,619,000 after purchasing an additional 28,908 shares in the last quarter. TIAA CREF Investment Management LLC raised its stake in shares of 3M by 7.4% during the fourth quarter. TIAA CREF Investment Management LLC now owns 4,591,067 shares of the conglomerate’s stock valued at $1,080,599,000 after purchasing an additional 318,088 shares in the last quarter. Finally, Schwab Charles Investment Management Inc. raised its stake in shares of 3M by 14.9% during the first quarter. Schwab Charles Investment Management Inc. now owns 3,644,386 shares of the conglomerate’s stock valued at $800,016,000 after purchasing an additional 473,250 shares in the last quarter. Institutional investors and hedge funds own 65.54% of the company’s stock.
3M Company Profile
3M Company operates as a diversified technology company worldwide. The company's Industrial segment offers tapes; coated, non-woven, and bonded abrasives; adhesives; ceramics; sealants; specialty materials; purification products; closure systems for personal hygiene products; acoustic systems products; automotive components; and abrasion-resistant films, and paint finishing and detailing products.
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