Investors Buy 3M (MMM) on Weakness

Traders bought shares of 3M Co (NYSE:MMM) on weakness during trading hours on Friday. $161.42 million flowed into the stock on the tick-up and $68.70 million flowed out of the stock on the tick-down, for a money net flow of $92.72 million into the stock. Of all companies tracked, 3M had the 9th highest net in-flow for the day. 3M traded down ($1.39) for the day and closed at $192.21

A number of equities research analysts have weighed in on MMM shares. Argus reduced their price objective on 3M from $240.00 to $225.00 and set a “buy” rating for the company in a research note on Wednesday, October 24th. Citigroup dropped their target price on 3M from $251.00 to $228.00 and set a “buy” rating on the stock in a report on Wednesday, October 24th. Gordon Haskett began coverage on 3M in a report on Friday, October 12th. They issued a “buy” rating on the stock. Royal Bank of Canada reissued a “buy” rating and issued a $213.00 target price on shares of 3M in a report on Wednesday, December 19th. Finally, Zacks Investment Research raised 3M from a “sell” rating to a “hold” rating in a report on Friday, October 5th. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating, six have issued a buy rating and one has given a strong buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average target price of $224.30.

The firm has a market capitalization of $111.97 billion, a price-to-earnings ratio of 20.96, a price-to-earnings-growth ratio of 1.75 and a beta of 1.14. The company has a debt-to-equity ratio of 1.31, a current ratio of 1.97 and a quick ratio of 1.36.

3M (NYSE:MMM) last announced its quarterly earnings data on Tuesday, October 23rd. The conglomerate reported $2.58 earnings per share for the quarter, missing the Zacks’ consensus estimate of $2.70 by ($0.12). 3M had a return on equity of 54.60% and a net margin of 13.79%. The business had revenue of $8.15 billion for the quarter, compared to analyst estimates of $8.41 billion. During the same period in the prior year, the company earned $2.33 EPS. The company’s revenue was down .2% on a year-over-year basis. As a group, research analysts predict that 3M Co will post 9.95 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Wednesday, December 12th. Shareholders of record on Friday, November 23rd were issued a $1.36 dividend. This represents a $5.44 annualized dividend and a yield of 2.83%. The ex-dividend date of this dividend was Wednesday, November 21st. 3M’s dividend payout ratio (DPR) is 59.32%.

3M announced that its board has authorized a stock buyback plan on Tuesday, November 13th that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the conglomerate to reacquire up to 8.7% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board believes its shares are undervalued.

In other news, Director Gregory R. Page bought 1,000 shares of the stock in a transaction on Friday, October 26th. The shares were bought at an average price of $184.50 per share, with a total value of $184,500.00. Following the completion of the acquisition, the director now owns 1,500 shares of the company’s stock, valued at $276,750. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.72% of the stock is currently owned by corporate insiders.

Institutional investors have recently bought and sold shares of the business. Morgan Stanley grew its holdings in 3M by 11.9% in the third quarter. Morgan Stanley now owns 4,042,904 shares of the conglomerate’s stock valued at $851,879,000 after purchasing an additional 430,262 shares during the last quarter. Fundsmith Equity Fund L.P. purchased a new stake in shares of 3M in the second quarter valued at $668,488,000. Canada Pension Plan Investment Board lifted its position in shares of 3M by 340.6% in the third quarter. Canada Pension Plan Investment Board now owns 259,360 shares of the conglomerate’s stock valued at $54,650,000 after acquiring an additional 200,491 shares in the last quarter. Holderness Investments Co. lifted its position in shares of 3M by 7.3% in the second quarter. Holderness Investments Co. now owns 4,350 shares of the conglomerate’s stock valued at $856,000 after acquiring an additional 295 shares in the last quarter. Finally, CWH Capital Management Inc. purchased a new stake in shares of 3M in the second quarter valued at $220,000. 66.17% of the stock is currently owned by institutional investors.

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3M Company Profile (NYSE:MMM)

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.

Further Reading: Preferred Stock

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