3M Co. (NYSE:MMM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.
According to Zacks, “Weak revenue growth and intense competition are likely to peg back 3M’s profitability to some extent. In order to survive, 3M has to make continuous investments in value drivers that act as a hedge against stiff competition, which further erode margins. 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. 3M has a positive earnings history in the trailing four quarters, beating estimates thrice. Earnings estimates have also remained steady over the last month. However, 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.”
MMM has been the subject of several other reports. Jefferies Group reaffirmed a “buy” rating on shares of 3M in a research note on Wednesday, July 6th. Morgan Stanley reissued a “sell” rating on shares of 3M in a research note on Friday, June 10th. Credit Suisse Group AG reissued a “buy” rating and set a $195.00 target price on shares of 3M in a research note on Friday, September 16th. Sanford C. Bernstein reissued a “market perform” rating on shares of 3M in a research note on Monday, June 27th. Finally, Deutsche Bank AG reissued a “hold” rating and set a $164.00 target price on shares of 3M in a research note on Thursday, August 25th. Three equities research analysts have rated the stock with a sell rating, seven have given a hold rating and three have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus price target of $167.11.
3M (NYSE:MMM) opened at 175.95 on Tuesday. The company’s 50-day moving average price is $178.80 and its 200 day moving average price is $172.58. The stock has a market capitalization of $106.34 billion, a PE ratio of 22.46 and a beta of 1.07. 3M has a 12 month low of $134.64 and a 12 month high of $182.27.
3M (NYSE:MMM) last posted its quarterly earnings data on Tuesday, July 26th. The company reported $2.08 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $2.07 by $0.01. The firm earned $7.70 billion during the quarter, compared to the consensus estimate of $7.73 billion. 3M had a return on equity of 41.84% and a net margin of 16.29%. The firm’s revenue was down .3% compared to the same quarter last year. During the same period in the prior year, the business earned $2.02 EPS. On average, analysts forecast that 3M will post $8.21 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which was paid on Monday, September 12th. Shareholders of record on Friday, August 19th were issued a dividend of $1.11 per share. This represents a $4.44 dividend on an annualized basis and a yield of 2.52%. The ex-dividend date of this dividend was Wednesday, August 17th. 3M’s dividend payout ratio (DPR) is presently 56.63%.
In other news, insider Paul A. Keel sold 3,180 shares of the firm’s stock in a transaction on Friday, July 29th. The stock was sold at an average price of $178.39, for a total transaction of $567,280.20. Following the sale, the insider now owns 9,961 shares in the company, valued at $1,776,942.79. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider James L. Bauman sold 9,066 shares of the firm’s stock in a transaction on Monday, August 1st. The stock was sold at an average price of $178.42, for a total value of $1,617,555.72. Following the sale, the insider now owns 10,834 shares in the company, valued at approximately $1,933,002.28. The disclosure for this sale can be found here. Company insiders own 0.58% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the company. Tufton Capital Management raised its position in shares of 3M by 0.4% in the first quarter. Tufton Capital Management now owns 28,611 shares of the company’s stock valued at $4,767,000 after buying an additional 114 shares during the period. Taylor Wealth Management Partners raised its position in shares of 3M by 30.1% in the first quarter. Taylor Wealth Management Partners now owns 2,204 shares of the company’s stock valued at $367,000 after buying an additional 510 shares during the period. Osborn Rohs Williams & Donohoe Ltd raised its position in shares of 3M by 13.9% in the first quarter. Osborn Rohs Williams & Donohoe Ltd now owns 15,541 shares of the company’s stock valued at $2,590,000 after buying an additional 1,902 shares during the period. Dalton Greiner Hartman Maher & Co. purchased a new position in shares of 3M during the first quarter valued at $19,252,000. Finally, Acadian Asset Management LLC raised its position in shares of 3M by 22.0% in the first quarter. Acadian Asset Management LLC now owns 43,441 shares of the company’s stock valued at $7,238,000 after buying an additional 7,829 shares during the period. 65.67% of the stock is currently owned by institutional investors and hedge funds.
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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