Zacks Investment Research downgraded shares of 3M (NYSE:MMM) from a hold rating to a sell rating in a research report released on Tuesday morning.

According to Zacks, “Over the past six months, 3M’s shares have underperformed and look overvalued compared to the industry. Escalating costs have become a major cause of concern for the company. High retirement benefit cost, 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. Notably, 3M has lowered its earnings guidance for 2018. Also, analysts have revised the Zacks Consensus Estimate for 2018 earnings downward in the past month, which indicates bearish analyst sentiment. Other headwinds like stiff competition from local players and supply contract issues remain causes of concern. Further, the company remains exposed to risks associated with adverse changes in foreign currency exchange rates, interest rates and commodity prices.”

Several other brokerages also recently issued reports on MMM. UBS Group upped their target price on shares of 3M from $215.00 to $220.00 and gave the stock a neutral rating in a research note on Thursday, August 30th. Citigroup set a $263.00 target price on shares of 3M and gave the stock a buy rating in a research note on Saturday, June 9th. Morgan Stanley started coverage on shares of 3M in a research note on Monday, August 20th. They issued an equal weight rating and a $212.00 target price on the stock. Barclays dropped their target price on shares of 3M from $210.00 to $201.00 and set an underweight rating on the stock in a research note on Wednesday, July 25th. Finally, ValuEngine upgraded shares of 3M from a sell rating to a hold rating in a research note on Saturday, July 14th. Four analysts have rated the stock with a sell rating, seven have issued a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company. 3M has an average rating of Hold and a consensus price target of $234.97.

Shares of MMM opened at $210.64 on Tuesday. The stock has a market capitalization of $125.25 billion, a price-to-earnings ratio of 22.43, a price-to-earnings-growth ratio of 2.04 and a beta of 1.16. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.08 and a current ratio of 1.56. 3M has a fifty-two week low of $190.57 and a fifty-two week high of $259.77.

3M (NYSE:MMM) last announced its quarterly earnings data on Tuesday, July 24th. The conglomerate reported $2.59 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.58 by $0.01. The business had revenue of $8.39 billion for the quarter, compared to analysts’ expectations of $8.36 billion. 3M had a net margin of 13.44% and a return on equity of 51.31%. The business’s revenue was up 7.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.58 earnings per share. equities analysts predict that 3M will post 10.28 earnings per share for the current year.

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 12th. Stockholders of record on Friday, August 24th were paid a $1.36 dividend. The ex-dividend date was Thursday, August 23rd. This represents a $5.44 annualized dividend and a dividend yield of 2.58%. 3M’s dividend payout ratio is presently 59.32%.

In related news, insider Eric D. Hammes sold 1,272 shares of the stock in a transaction that occurred on Monday, September 10th. The shares were sold at an average price of $216.00, for a total transaction of $274,752.00. Following the transaction, the insider now owns 5,634 shares in the company, valued at $1,216,944. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Jon T. Lindekugel sold 6,410 shares of the stock in a transaction that occurred on Friday, August 10th. The shares were sold at an average price of $203.01, for a total transaction of $1,301,294.10. The disclosure for this sale can be found here. 0.72% of the stock is owned by corporate insiders.

A number of institutional investors have recently modified their holdings of the stock. Cadinha & Co. LLC lifted its position in 3M by 3.9% during the second quarter. Cadinha & Co. LLC now owns 6,390 shares of the conglomerate’s stock valued at $1,257,000 after purchasing an additional 240 shares during the period. Montecito Bank & Trust increased its holdings in 3M by 3.8% during the second quarter. Montecito Bank & Trust now owns 6,680 shares of the conglomerate’s stock valued at $1,314,000 after buying an additional 242 shares during the last quarter. REDW Stanley Financial Advisors LLC increased its holdings in 3M by 8.2% during the second quarter. REDW Stanley Financial Advisors LLC now owns 3,294 shares of the conglomerate’s stock valued at $648,000 after buying an additional 250 shares during the last quarter. Ascension Asset Management LLC increased its holdings in 3M by 3.3% during the second quarter. Ascension Asset Management LLC now owns 7,775 shares of the conglomerate’s stock valued at $1,529,000 after buying an additional 250 shares during the last quarter. Finally, Ausdal Financial Partners Inc. increased its holdings in 3M by 12.2% during the second quarter. Ausdal Financial Partners Inc. now owns 2,338 shares of the conglomerate’s stock valued at $460,000 after buying an additional 254 shares during the last quarter. Institutional investors own 66.93% 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.

See Also: Stop Order Uses For Individual Investors

Get a free copy of the Zacks research report on 3M (MMM)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for 3M (NYSE:MMM)

Receive News & Ratings for 3M Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for 3M and related companies with MarketBeat.com's FREE daily email newsletter.