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

Key Points

• On Tuesday, stock traders purchased 65,787 call options for 3M, marking an increase of approximately 534% from the average daily volume.
• Multiple Wall Street analysts raised their price targets for 3M, with Deutsche Bank increasing it from $177.00 to $185.00, maintaining a "buy" rating.
• 3M recently announced a quarterly dividend of $0.73 per share, reflecting an annual yield of 1.8% and a dividend payout ratio of 40.61%.

3M Company (NYSE:MMM - Get Free Report) was the target of some unusual options trading activity on Tuesday. Stock investors purchased 65,787 call options on the stock. This represents an increase of approximately 534% compared to the average daily volume of 10,377 call options.

Wall Street Analyst Weigh In

MMM has been the subject of a number of recent research reports. Wells Fargo & Company increased their price target on shares of 3M from $170.00 to $176.00 and gave the stock an "overweight" rating in a research note on Monday, October 6th. Weiss Ratings reiterated a "buy (b-)" rating on shares of 3M in a research note on Wednesday, October 8th. Deutsche Bank Aktiengesellschaft increased their price target on shares of 3M from $177.00 to $185.00 and gave the stock a "buy" rating in a research note on Thursday, October 2nd. Citigroup increased their price target on shares of 3M from $160.00 to $169.00 and gave the stock a "neutral" rating in a research note on Thursday, October 9th. Finally, JPMorgan Chase & Co. increased their price target on shares of 3M from $175.00 to $178.00 and gave the stock an "overweight" rating in a research note on Wednesday, October 15th. Nine investment 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's stock. Based on data from MarketBeat.com, 3M currently has a consensus rating of "Moderate Buy" and an average price target of $168.10.

Insider Buying and Selling at 3M

In other news, insider Christian T. Goralski, Jr. sold 6,165 shares of the company's stock in a transaction on Thursday, August 7th. The shares were sold at an average price of $150.18, for a total value of $925,859.70. Following the completion of the transaction, the insider owned 2,900 shares in the company, valued at approximately $435,522. This represents a 68.01% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CAO Theresa E. Reinseth sold 3,477 shares of the company's stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $150.63, for a total transaction of $523,740.51. Following the completion of 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. Corporate insiders own 0.48% of the company's stock.

Hedge Funds Weigh In On 3M

Several hedge funds have recently added to or reduced their stakes in the business. Allen Mooney & Barnes Investment Advisors LLC increased its holdings in 3M by 40.3% during the 3rd quarter. Allen Mooney & Barnes Investment Advisors LLC now owns 3,299 shares of the conglomerate's stock valued at $512,000 after acquiring an additional 948 shares in the last quarter. Private Trust Co. NA boosted its stake 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 purchasing an additional 69 shares during the last quarter. MJT & Associates Financial Advisory Group Inc. boosted its stake in shares of 3M by 6.0% during 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 last quarter. Farther Finance Advisors LLC boosted its stake in shares of 3M by 12.6% during the 3rd quarter. Farther Finance Advisors LLC now owns 13,671 shares of the conglomerate's stock worth $2,122,000 after purchasing an additional 1,534 shares during the last quarter. Finally, Corsicana & Co. acquired a new stake in shares of 3M during the 3rd quarter worth about $110,000. 65.25% of the stock is currently owned by hedge funds and other institutional investors.

3M Stock Performance

3M stock traded up $11.78 during trading hours on Tuesday, reaching $166.56. 7,290,550 shares of the stock were exchanged, compared to its average volume of 2,703,973. The stock has a market cap of $88.71 billion, a P/E 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 has a 52-week low of $121.98 and a 52-week high of $166.82. The firm's 50 day moving average is $155.18 and its 200 day moving average is $149.19.

3M (NYSE:MMM - Get Free Report) last announced its quarterly earnings results on Tuesday, February 21st. The conglomerate reported $2.45 earnings per share (EPS) for the quarter. The business had revenue of $8.38 billion during the quarter. 3M had a net margin of 16.01% and a return on equity of 96.48%. Analysts predict that 3M will post 7.8 EPS for the current fiscal year.

3M Announces Dividend

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

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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