3M Company (MMM) Downgraded to Sell at Zacks Investment Research
Zacks Investment Research cut shares of 3M Company (NYSE:MMM) from a hold rating to a sell rating in a research report report published on Tuesday.
According to Zacks, “Given its international presence, adverse foreign currency translations are likely to affect 3M’s ability to realize projected growth rates in sales and earnings. Fluctuations in foreign currency exchange rates affect net investment in foreign subsidiaries and may cause instability in cash flows related to foreign denominated transactions. Sustained strength in the U.S. dollar will further continue to negatively impact earnings, as exports consume a significant part of the company’s operations. Increased pension expenses also remain a significant headwind for 3M and erode its profitability. In addition, the company is susceptible to commodity price headwinds. Moreover, intense competitive pressure reduces its profitability to some extent. However, 3M is standardizing its business processes through a new, global ERP system for significant operational savings. 3M also outperformed the industry year to date.”
A number of other equities research analysts have also weighed in on the stock. Bank of America Corporation restated a buy rating and issued a $225.00 price objective (up from $208.00) on shares of 3M in a report on Tuesday, June 6th. J P Morgan Chase & Co downgraded shares of 3M from a neutral rating to an underweight rating and boosted their target price for the stock from $185.00 to $201.00 in a research note on Wednesday, September 20th. Morgan Stanley reiterated an underweight rating and set a $191.00 target price (down previously from $193.00) on shares of 3M in a research note on Monday, July 10th. BidaskClub lowered 3M from a strong-buy rating to a buy rating in a report on Friday, June 30th. Finally, Royal Bank Of Canada reissued a hold rating and issued a $209.00 target price on shares of 3M in a report on Friday, September 15th. Four investment analysts have rated the stock with a sell rating, five have given a hold rating and seven have given a buy rating to the stock. The company has an average rating of Hold and a consensus price target of $208.27.
3M (NYSE MMM) traded up 0.86% during trading on Tuesday, reaching $216.42. The company’s stock had a trading volume of 520,701 shares. The stock has a 50 day moving average price of $207.47 and a 200 day moving average price of $202.91. 3M has a 1-year low of $163.85 and a 1-year high of $216.47. The stock has a market capitalization of $129.15 billion, a PE ratio of 24.69 and a beta of 1.09.
3M (NYSE:MMM) last posted its quarterly earnings data on Tuesday, July 25th. The conglomerate reported $2.58 earnings per share for the quarter, missing analysts’ consensus estimates of $2.59 by ($0.01). The company had revenue of $7.81 billion for the quarter, compared to analysts’ expectations of $7.86 billion. 3M had a return on equity of 47.83% and a net margin of 17.65%. The firm’s revenue was up 1.9% compared to the same quarter last year. During the same period in the prior year, the company posted $2.08 EPS. Analysts anticipate that 3M will post $8.95 earnings per share for the current fiscal year.
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The company also recently declared a quarterly dividend, which was paid on Tuesday, September 12th. Shareholders of record on Friday, August 25th were given a dividend of $1.175 per share. This represents a $4.70 annualized dividend and a yield of 2.19%. The ex-dividend date of this dividend was Wednesday, August 23rd. 3M’s dividend payout ratio (DPR) is 53.59%.
In other 3M news, VP Eric D. Hammes sold 1,428 shares of 3M stock in a transaction on Thursday, August 17th. The shares were sold at an average price of $206.66, for a total value of $295,110.48. Following the transaction, the vice president now directly owns 3,066 shares in the company, valued at $633,619.56. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Frank R. Jr. Little sold 2,719 shares of 3M stock in a transaction on Thursday, August 17th. The shares were sold at an average price of $206.03, for a total transaction of $560,195.57. Following the completion of the transaction, the insider now owns 9,010 shares in the company, valued at $1,856,330.30. The disclosure for this sale can be found here. In the last quarter, insiders sold 9,112 shares of company stock valued at $1,878,890. 0.58% of the stock is owned by company insiders.
Several institutional investors and hedge funds have recently made changes to their positions in MMM. Ameriprise Financial Inc. increased its position in 3M by 0.3% in the 1st quarter. Ameriprise Financial Inc. now owns 3,275,913 shares of the conglomerate’s stock valued at $626,792,000 after acquiring an additional 8,239 shares during the period. Smithfield Trust Co. raised its stake in 3M by 0.7% during the 1st quarter. Smithfield Trust Co. now owns 17,364 shares of the conglomerate’s stock valued at $3,322,000 after acquiring an additional 122 shares during the last quarter. C.V. Starr & Co. Inc. Trust raised its stake in 3M by 20.0% during the 1st quarter. C.V. Starr & Co. Inc. Trust now owns 60,000 shares of the conglomerate’s stock valued at $11,480,000 after acquiring an additional 10,000 shares during the last quarter. Twin Capital Management Inc. purchased a new stake in 3M during the 2nd quarter valued at approximately $6,178,000. Finally, Gotham Asset Management LLC raised its stake in 3M by 3.6% during the 1st quarter. Gotham Asset Management LLC now owns 99,873 shares of the conglomerate’s stock valued at $19,109,000 after acquiring an additional 3,427 shares during the last quarter. Institutional investors and hedge funds own 66.20% of the company’s stock.
3M Company is a technology company. It operates through five segments. The Industrial segment serves a range of markets, such as automotive original equipment manufacturer and automotive aftermarket, electronics, appliance, paper and printing, packaging, food and beverage, and construction. The Safety and Graphics segment serves a range of markets for the safety, security and productivity of people, facilities and systems.
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