3M (MMM) Lifted to Hold at Zacks Investment Research

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Zacks Investment Research upgraded shares of 3M (NYSE:MMM) from a sell rating to a hold rating in a research note issued to investors on Tuesday.

According to Zacks, “Over the past three months, 3M’s shares have outperformed the industry. The company perceives that stronger demand for household products like Nexcare, Post-it and Scotch and ongoing product portfolio restructuring moves will boost up its revenues in the upcoming quarters. However, over the past three months, 3M’s shares look overvalued compared to the industry. Escalating costs have become a major cause of concern for the company. Inflation in the prices of major inputs and escalating interest expenses might continue to augment the company’s aggregate costs, in turn, hurting its near-term profitability. Over the past 7 days, Zacks Consensus Estimate for the stock has remained unchanged for both 2018 and 2019.”

Several other brokerages have also recently issued reports on MMM. MED cut 3M from a buy rating to a hold rating and set a $208.00 target price for the company. in a report on Thursday, July 12th. ValuEngine upgraded 3M from a sell rating to a hold rating in a report on Saturday, July 14th. Morgan Stanley initiated coverage on 3M in a report on Monday, August 20th. They set an equal weight rating and a $212.00 price target for the company. Deutsche Bank reiterated a hold rating and set a $208.00 price target on shares of 3M in a report on Thursday, July 12th. Finally, Citigroup set a $263.00 price target on 3M and gave the stock a buy rating in a report on Saturday, June 9th. Three research analysts have rated the stock with a sell rating, eight have assigned a hold rating, six have issued a buy rating and one has given a strong buy rating to the company’s stock. The company has a consensus rating of Hold and an average target price of $234.97.

Shares of NYSE:MMM opened at $209.05 on Tuesday. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.56 and a quick ratio of 1.08. The firm has a market capitalization of $121.26 billion, a price-to-earnings ratio of 22.80, a P/E/G ratio of 1.96 and a beta of 1.16. 3M has a 52-week low of $190.57 and a 52-week high of $259.77.

3M (NYSE:MMM) last issued its earnings results on Tuesday, July 24th. The conglomerate reported $2.59 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $2.58 by $0.01. The company had revenue of $8.39 billion during the quarter, compared to analysts’ expectations of $8.36 billion. 3M had a return on equity of 51.31% and a net margin of 13.44%. The firm’s quarterly revenue was up 7.4% on a year-over-year basis. During the same period in the prior year, the business earned $2.58 EPS. equities analysts expect that 3M will post 10.37 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 12th. Stockholders of record on Friday, August 24th were issued a dividend of $1.36 per share. This represents a $5.44 dividend on an annualized basis and a dividend yield of 2.60%. The ex-dividend date was Thursday, August 23rd. 3M’s dividend payout ratio is presently 59.32%.

In related news, insider Eric D. Hammes sold 1,272 shares of the firm’s stock in a transaction dated Monday, September 10th. The stock was sold at an average price of $216.00, for a total transaction of $274,752.00. Following the completion of the transaction, the insider now directly owns 5,634 shares in the company, valued at approximately $1,216,944. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Jon T. Lindekugel sold 6,410 shares of the firm’s stock in a transaction dated Friday, August 10th. The shares were sold at an average price of $203.01, for a total value of $1,301,294.10. The disclosure for this sale can be found here. Corporate insiders own 0.58% of the company’s stock.

A number of institutional investors have recently made changes to their positions in MMM. Montag A & Associates Inc. boosted its holdings in 3M by 8.1% during the 1st quarter. Montag A & Associates Inc. now owns 14,560 shares of the conglomerate’s stock valued at $3,196,000 after acquiring an additional 1,085 shares during the period. Synovus Financial Corp boosted its holdings in 3M by 4.8% during the 1st quarter. Synovus Financial Corp now owns 39,770 shares of the conglomerate’s stock valued at $8,730,000 after acquiring an additional 1,804 shares during the period. Sawtooth Solutions LLC boosted its holdings in 3M by 14.1% during the 1st quarter. Sawtooth Solutions LLC now owns 3,876 shares of the conglomerate’s stock valued at $851,000 after acquiring an additional 478 shares during the period. Aperio Group LLC boosted its holdings in 3M by 1.2% during the 1st quarter. Aperio Group LLC now owns 584,155 shares of the conglomerate’s stock valued at $128,234,000 after acquiring an additional 6,726 shares during the period. Finally, Thrivent Financial for Lutherans boosted its holdings in 3M by 5.7% during the 1st quarter. Thrivent Financial for Lutherans now owns 30,582 shares of the conglomerate’s stock valued at $6,714,000 after acquiring an additional 1,637 shares during the period. Institutional investors own 66.29% of the company’s stock.

About 3M

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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