3M (NYSE:MMM) Sets New 12-Month High Following Strong Earnings

Key Points

• 3M shares reached a new 52-week high at $166.82 following a strong earnings report, reporting an EPS of $2.45 and revenue of $8.38 billion.
• The company announced a quarterly dividend of $0.73 per share, resulting in an annualized dividend of $2.92 and a yield of 1.8%.
• Analysts have increased target prices on 3M's stock, with Deutsche Bank raising its target to $185.00 and the consensus now at $166.78, reflecting a "Moderate Buy" rating from seven analysts.

3M Company (NYSE:MMM - Get Free Report) shares hit a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The company traded as high as $166.82 and last traded at $166.56, with a volume of 7290550 shares. The stock had previously closed at $154.78.

The conglomerate reported $2.45 EPS for the quarter. 3M had a return on equity of 96.48% and a net margin of 16.01%.The business had revenue of $8.38 billion during the quarter.

3M Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 12th. Investors of record on Monday, August 25th were paid a dividend of $0.73 per share. The ex-dividend date was Monday, August 25th. This represents a $2.92 annualized dividend and a yield of 1.8%. 3M's payout ratio is presently 40.61%.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. Deutsche Bank Aktiengesellschaft boosted their target price on 3M from $177.00 to $185.00 and gave the stock a "buy" rating in a research note on Thursday, October 2nd. Morgan Stanley set a $160.00 target price on 3M in a research note on Tuesday. JPMorgan Chase & Co. boosted their target price on 3M from $175.00 to $178.00 and gave the stock an "overweight" rating in a research note on Wednesday, October 15th. Weiss Ratings reiterated a "buy (b-)" rating on shares of 3M in a research note on Wednesday, October 8th. Finally, Citigroup boosted their price objective on 3M from $160.00 to $169.00 and gave the company a "neutral" rating in a research note on Thursday, October 9th. Seven equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, 3M presently has an average rating of "Moderate Buy" and a consensus target price of $166.78.

Insider Buying and Selling at 3M

In related news, insider Christian T. Goralski, Jr. sold 6,165 shares of the stock in a transaction dated Thursday, August 7th. The stock was sold at an average price of $150.18, for a total transaction of $925,859.70. Following the transaction, the insider directly owned 2,900 shares in the company, valued at approximately $435,522. This represents a 68.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CAO Theresa E. Reinseth sold 3,477 shares of the stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $150.63, for a total value of $523,740.51. Following the transaction, the chief accounting officer owned 2,561 shares in the company, valued at $385,763.43. This trade represents a 57.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.48% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On 3M

Several large investors have recently added to or reduced their stakes in the business. Private Trust Co. NA lifted its position in 3M by 0.8% during the third quarter. Private Trust Co. NA now owns 9,205 shares of the conglomerate's stock worth $1,428,000 after buying an additional 69 shares during the period. MJT & Associates Financial Advisory Group Inc. raised its holdings in shares of 3M by 6.0% in the 3rd quarter. MJT & Associates Financial Advisory Group Inc. now owns 1,255 shares of the conglomerate's stock worth $195,000 after purchasing an additional 71 shares during the period. Farmers & Merchants Investments Inc. raised its holdings in shares of 3M by 0.4% in the 2nd quarter. Farmers & Merchants Investments Inc. now owns 16,920 shares of the conglomerate's stock worth $2,576,000 after purchasing an additional 72 shares during the period. TCV Trust & Wealth Management Inc. raised its holdings in shares of 3M by 1.1% in the 1st quarter. TCV Trust & Wealth Management Inc. now owns 6,497 shares of the conglomerate's stock worth $954,000 after purchasing an additional 73 shares during the period. Finally, Cahaba Wealth Management Inc. raised its holdings in shares of 3M by 1.4% in the 1st quarter. Cahaba Wealth Management Inc. now owns 5,580 shares of the conglomerate's stock worth $819,000 after purchasing an additional 75 shares during the period. 65.25% of the stock is currently owned by hedge funds and other institutional investors.

3M Trading Up 7.6%

The business has a fifty day moving average price of $155.18 and a 200 day moving average price of $149.19. The company has a market capitalization of $88.71 billion, a PE ratio of 23.17, a P/E/G ratio of 2.56 and a beta of 1.05. The company has a debt-to-equity ratio of 2.87, a quick ratio of 1.20 and a current ratio of 1.72.

3M Company Profile

3M Company provides diversified technology services in the United States and internationally. The company's Safety and Industrial segment offers industrial abrasives and finishing for metalworking applications; autobody repair solutions; closure systems for personal hygiene products, masking, and packaging materials; electrical products and materials for construction and maintenance, power distribution, and electrical original equipment manufacturers; structural adhesives and tapes; respiratory, hearing, eye, and fall protection solutions; and natural and color-coated mineral granules for shingles.

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