Stock Repurchase Plan Announced by 3M (NYSE:MMM) Board of Directors

Key Points

• 3M authorized $6 billion in share buybacks, allowing it to repurchase up to 6.6% of its shares through open-market purchases; the authorization does not guarantee that all shares will be bought.
• Analysts’ consensus rating was “Hold,” with an average price target of $187.57. Shares traded at $194.03 in the report, above that target.
• Quarterly earnings were $2.50 per share, beating estimates, while revenue of $6.60 billion came in just below forecasts. 3M also declared a quarterly dividend of $0.78 per share.

3M (NYSE:MMM - Get Free Report) announced that its board has initiated a stock buyback program on Wednesday, November 4th, RTT News reports. The company plans to buy back $6 billion in shares. This repurchase authorization permits the conglomerate to buy up to 6.6% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the company. Sanford C. Bernstein boosted their price objective on 3M from $171.00 to $197.00 and gave the stock a "market perform" rating in a research note on Wednesday, October 21st. UBS Group set a $230.00 target price on 3M in a research report on Wednesday. The Goldman Sachs Group reaffirmed a "buy" rating on shares of 3M in a research note on Wednesday, July 22nd. Citigroup boosted their price target on 3M from $183.00 to $188.00 and gave the stock a "neutral" rating in a research report on Wednesday, October 21st. Finally, Wolfe Research reissued an "outperform" rating on shares of 3M in a research note on Thursday, July 9th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, 3M presently has an average rating of "Hold" and an average price target of $187.57.

3M Price Performance

Shares of 3M stock traded up $16.98 on Wednesday, hitting $194.03. 9,052,352 shares of the company were exchanged, compared to its average volume of 3,492,739. The stock has a market capitalization of $100.26 billion, a price-to-earnings ratio of 19.96, a price-to-earnings-growth ratio of 2.31 and a beta of 1.01. The company has a 50-day moving average price of $168.68 and a 200 day moving average price of $161.55. 3M has a 1-year low of $139.34 and a 1-year high of $194.77. The company has a quick ratio of 1.06, a current ratio of 1.41 and a debt-to-equity ratio of 3.01.

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

3M Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, December 11th. Stockholders of record on Friday, November 13th will be issued a dividend of $0.78 per share. This represents a $3.12 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Friday, November 13th. 3M's payout ratio is currently 46.50%.

More 3M News

Here are the key news stories impacting 3M this week:

• Positive Sentiment: 3M agreed to a PFAS personal-injury settlement with a commitment of $5.8 billion in present value through 2034, or up to $7.35 billion in total payments. UBS said it covers about 99% of current claims and costs less than investors had expected, potentially removing a major litigation overhang. Article: 3M settlement removes major PFAS overhang, UBS says
• Positive Sentiment: 3M and Amazon Web Services are expanding work to scale 3M’s optical-connectivity platform for AI-focused data centers. The initiative is expected to create more than 500 jobs and contribute nearly $500 million to the economy, bolstering the company’s exposure to data-center growth. Article: 3M expands AI data center optics push
• Positive Sentiment: The board authorized an additional $6 billion in share repurchases, bringing total availability under its program to $7.5 billion, and declared a quarterly dividend of $0.78 per share. Buybacks and the dividend add to shareholder returns, though the authorization does not guarantee purchases. Article: 3M approves share repurchase authorization and declares dividend
• Positive Sentiment: JPMorgan raised its price target to $210 from $191 and maintained an Overweight rating, signaling a more favorable view of the shares. Article: JPMorgan raises 3M price target
• Negative Sentiment: The settlement remains a substantial cash commitment, and reports note that its final implementation depends on a claimant participation threshold that has not been publicly disclosed. Article: 3M's forever chemicals bill just grew by billions

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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