Traders Purchase High Volume of 3M Call Options (NYSE:MMM)

Key Points

• Traders purchased 34,496 3M call options on Thursday, about 263% above the average daily volume of 9,490.
• 3M shares fell $2.48 to $186.40 in mid-day trading. The company beat quarterly earnings estimates, reporting $2.50 per share, though revenue of $6.60 billion was slightly below expectations.
• 3M announced a quarterly dividend of $0.78 per share and authorized up to $6 billion in share repurchases. Analysts’ consensus rating was Hold, with an average price target of $190.07.

3M Company (NYSE:MMM - Get Free Report) was the recipient of some unusual options trading on Thursday. Traders bought 34,496 call options on the stock. This is an increase of approximately 263% compared to the average daily volume of 9,490 call options.

3M Price Performance

Shares of MMM traded down $2.48 during mid-day trading on Thursday, reaching $186.40. The company had a trading volume of 2,311,335 shares, compared to its average volume of 3,699,824. The company has a debt-to-equity ratio of 3.01, a current ratio of 1.41 and a quick ratio of 1.06. The company has a market capitalization of $96.32 billion, a P/E ratio of 27.78, a P/E/G ratio of 2.47 and a beta of 1.01. 3M has a twelve month low of $139.34 and a twelve month high of $196.90. The company's 50-day moving average is $169.98 and its 200-day moving average is $162.23.

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

3M Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, December 11th. Stockholders of record on Friday, November 13th will be paid a $0.78 dividend. The ex-dividend date is Friday, November 13th. This represents a $3.12 dividend on an annualized basis and a dividend yield of 1.7%. 3M's payout ratio is 46.50%.

3M declared that its board has initiated a share repurchase plan on Wednesday, November 4th that permits the company to repurchase $6 billion in outstanding shares. This repurchase authorization permits the conglomerate to purchase up to 6.6% of its shares through open market purchases. Stock repurchase plans are often an indication that the company's board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

MMM has been the subject of a number of recent research reports. Jefferies Financial Group restated a "hold" rating and issued a $186.00 target price on shares of 3M in a research note on Wednesday, October 21st. Weiss Ratings upgraded shares of 3M from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, October 23rd. HSBC raised shares of 3M to a "strong-buy" rating in a report on Thursday, October 22nd. Wolfe Research cut shares of 3M from an "outperform" rating to a "peer perform" rating in a research note on Thursday. Finally, UBS Group set a $230.00 price objective on shares of 3M in a research note on Wednesday, November 4th. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $190.07.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Two West Capital Advisors LLC raised its position in 3M by 3.3% in the 3rd quarter. Two West Capital Advisors LLC now owns 1,996 shares of the conglomerate's stock valued at $336,000 after purchasing an additional 63 shares during the last quarter. Blue Jean Financial LLC grew its holdings in shares of 3M by 4.5% during the third quarter. Blue Jean Financial LLC now owns 1,496 shares of the conglomerate's stock worth $246,000 after purchasing an additional 64 shares during the last quarter. Capital Analysts LLC grew its holdings in shares of 3M by 2.7% during the second quarter. Capital Analysts LLC now owns 2,576 shares of the conglomerate's stock worth $417,000 after purchasing an additional 67 shares during the last quarter. Revisor Wealth Management LLC increased its stake in shares of 3M by 2.8% in the third quarter. Revisor Wealth Management LLC now owns 2,492 shares of the conglomerate's stock valued at $411,000 after buying an additional 67 shares in the last quarter. Finally, MBA Advisors LLC increased its stake in shares of 3M by 2.5% in the second quarter. MBA Advisors LLC now owns 2,839 shares of the conglomerate's stock valued at $460,000 after buying an additional 68 shares in the last quarter. 65.25% of the stock is owned by institutional investors and hedge funds.

About 3M

3M is a diversified science and manufacturing company that develops products for businesses and consumers. Its offerings include workplace safety equipment, adhesives and abrasives, filtration materials, automotive and electronics components, and home and office products such as Post-it Notes and Scotch brand tapes. Founded in 1902 as the Minnesota Mining and Manufacturing Company, 3M began as a mining venture before expanding into materials science and industrial manufacturing. The company adopted the name 3M in 2002 and is headquartered in St. Paul, Minnesota.

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