HSBC Upgrades 3M (NYSE:MMM) to Strong-Buy

Key Points

• HSBC upgraded 3M to “strong buy,” but broader analyst sentiment remains cautious, with a consensus “hold” rating and an average price target of $185.36.
• 3M reported quarterly EPS of $2.50, beating estimates of $2.38, while revenue reached $6.60 billion—slightly below expectations but up 1.5% year over year.
• Shares opened at $173.62, near the upper end of their 52-week range of $139.34 to $184.90; institutional investors own 65.25% of the company.

3M (NYSE:MMM - Get Free Report) was upgraded by investment analysts at HSBC to a "strong-buy" rating in a research note issued on Thursday, Zacks reports.

A number of other equities analysts have also commented on MMM. Wells Fargo & Company started coverage on 3M in a research note on Thursday, September 24th. They set an "equal weight" rating and a $195.00 price target for the company. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of 3M in a research note on Wednesday. Mizuho upped their price objective on 3M from $160.00 to $180.00 and gave the stock a "neutral" rating in a report on Thursday, July 23rd. Jefferies Financial Group reiterated a "hold" rating and set a $186.00 target price on shares of 3M in a research report on Wednesday. Finally, Royal Bank Of Canada raised their target price on shares of 3M from $132.00 to $135.00 and gave the company an "underperform" rating in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $185.36.

3M Price Performance

Shares of NYSE:MMM opened at $173.62 on Thursday. The firm has a market cap of $89.72 billion, a price-to-earnings ratio of 25.88, a P/E/G ratio of 2.29 and a beta of 0.99. The firm has a fifty day moving average price of $168.84 and a 200 day moving average price of $162.21. 3M has a fifty-two week low of $139.34 and a fifty-two week high of $184.90. The company has a debt-to-equity ratio of 3.01, a quick ratio of 0.91 and a current ratio of 1.41.

3M (NYSE:MMM - Get Free Report) last announced its quarterly earnings results on Tuesday, October 20th. The conglomerate reported $2.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.38 by $0.12. The company had revenue of $6.60 billion for the quarter, compared to the consensus estimate of $6.61 billion. 3M had a net margin of 14.01% and a return on equity of 123.11%. 3M's revenue for the quarter was up 1.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.19 EPS. As a group, sell-side analysts expect that 3M will post 9.14 earnings per share for the current fiscal year.

Insider Transactions at 3M

In other 3M news, insider Karin Chavez sold 3,635 shares of the company's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $182.51, for a total transaction of $663,423.85. Following the sale, the insider directly owned 14,035 shares in the company, valued at $2,561,527.85. This represents a 20.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. 0.19% of the stock is currently owned by company insiders.

Institutional Trading of 3M

A number of institutional investors have recently bought and sold shares of the stock. Valley National Advisers Inc. grew its holdings in 3M by 9.5% during the third quarter. Valley National Advisers Inc. now owns 956 shares of the conglomerate's stock worth $157,000 after acquiring an additional 83 shares during the period. Norris Perne & French LLP MI acquired a new position in 3M in the third quarter valued at approximately $442,000. Signaturefd LLC lifted its holdings in 3M by 20.0% in the third quarter. Signaturefd LLC now owns 11,115 shares of the conglomerate's stock valued at $1,825,000 after acquiring an additional 1,854 shares during the period. Citizens Financial Group Inc. RI lifted its holdings in 3M by 7.0% in the third quarter. Citizens Financial Group Inc. RI now owns 20,217 shares of the conglomerate's stock valued at $3,319,000 after acquiring an additional 1,327 shares during the period. Finally, Sowell Financial Services LLC boosted its position in 3M by 1.1% in the 3rd quarter. Sowell Financial Services LLC now owns 41,434 shares of the conglomerate's stock worth $6,801,000 after purchasing an additional 444 shares in the last quarter. 65.25% of the stock is currently owned by institutional investors.

About 3M

3M is a diversified technology and manufacturing company headquartered in St. Paul, Minnesota. Founded in 1902 as Minnesota Mining and Manufacturing Company, it developed from a mining venture into a global enterprise known for applying materials science and engineering to a broad range of industrial, commercial and consumer applications.

The company develops and manufactures products including adhesives, abrasives, filtration systems, personal protective equipment, medical and dental supplies, electrical and electronic materials, automotive components, reflective materials and workplace safety solutions.

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