3M (NYSE:MMM) Trading Up 4.5% Following Strong Earnings

Key Points

• 3M's stock rose by 4.5% to $161.69 after reporting better-than-expected earnings, with EPS of $2.45 and revenue of $8.38 billion for the quarter.
• The company also announced a quarterly dividend of $0.73, representing a 1.8% yield and a dividend payout ratio of 40.61%.
• Recent ratings by analysts show a consensus "Moderate Buy" with target prices ranging from $169 to $185 from various investment firms.

3M Company (NYSE:MMM - Get Free Report)'s share price was up 4.5% on Tuesday following a better than expected earnings announcement. The company traded as high as $160.23 and last traded at $161.69. Approximately 1,542,841 shares were traded during trading, a decline of 57% from the average daily volume of 3,605,773 shares. The stock had previously closed at $154.78.

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

3M Announces Dividend

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

Wall Street Analyst Weigh In

A number of research analysts have weighed in on MMM shares. Weiss Ratings reissued a "buy (b-)" rating on shares of 3M in a report on Wednesday, October 8th. Wells Fargo & Company lifted their target price on 3M from $170.00 to $176.00 and gave the company an "overweight" rating in a research note on Monday, October 6th. Deutsche Bank Aktiengesellschaft lifted their target price on 3M from $177.00 to $185.00 and gave the company a "buy" rating in a research note on Thursday, October 2nd. Citigroup lifted their target price on 3M from $160.00 to $169.00 and gave the company a "neutral" rating in a research note on Thursday, October 9th. Finally, JPMorgan Chase & Co. lifted their target price on 3M from $175.00 to $178.00 and gave the company an "overweight" rating in a research note on Wednesday, October 15th. Nine research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, 3M has a consensus rating of "Moderate Buy" and an average target price of $169.00.

Insider Activity at 3M

In related news, insider Christian T. Goralski, Jr. sold 6,165 shares of the business's stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $150.18, for a total transaction of $925,859.70. Following the completion of the transaction, the insider owned 2,900 shares in the company, valued at $435,522. The trade was a 68.01% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Theresa E. Reinseth sold 3,477 shares of the business's stock in a transaction on Tuesday, August 5th. The shares were 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 of the company's stock, valued at approximately $385,763.43. The trade was a 57.59% decrease in their position. The disclosure for this sale can be found here. Insiders own 0.34% of the company's stock.

Hedge Funds Weigh In On 3M

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Private Trust Co. NA grew its position in shares of 3M by 0.8% during the 3rd 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 in the last quarter. MJT & Associates Financial Advisory Group Inc. raised its stake in 3M by 6.0% in the third quarter. MJT & Associates Financial Advisory Group Inc. now owns 1,255 shares of the conglomerate's stock valued at $195,000 after buying an additional 71 shares during the last quarter. Farmers & Merchants Investments Inc. raised its stake in 3M by 0.4% in the second quarter. Farmers & Merchants Investments Inc. now owns 16,920 shares of the conglomerate's stock valued at $2,576,000 after buying an additional 72 shares during the last quarter. TCV Trust & Wealth Management Inc. raised its stake in shares of 3M by 1.1% in the first 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 last quarter. Finally, Cahaba Wealth Management Inc. raised its stake in shares of 3M by 1.4% in the first 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 last quarter. Institutional investors own 65.25% of the company's stock.

3M Stock Performance

The stock has a market capitalization of $86.15 billion, a price-to-earnings ratio of 22.50, a price-to-earnings-growth ratio of 2.52 and a beta of 1.05. The firm has a fifty day moving average of $155.01 and a 200 day moving average of $149.07. The company has a debt-to-equity ratio of 2.87, a current ratio of 1.72 and a quick ratio of 1.20.

About 3M

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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