Zacks Investment Research Lowers 3M (MMM) to Hold

3M (NYSE:MMM) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday.

According to Zacks, “3M's global footprint, diversified product portfolio and the ability to penetrate in different markets have been its forte. Portfolio management, investment in innovation and business transformation are the three key levers on which the company intends to focus. 3M also intends to continue investing in capital expenditures and R&D to support organic growth as it aims a prudent capital structure strategy and increased capital deployment. 3M has outperformed the industry in the past three months. However, high pension expenses continue to be a drag on the company’s bottom line. Adverse foreign currency translations are likely to affect the company’s ability to realize projected growth rates in its sales and earnings. Also, as exports are a significant part of the company’s operations and growth prospects, sustained strength in U.S. dollar will continue to negatively impact the company’s earnings in the short-term.”

Other analysts have also recently issued reports about the stock. Citigroup raised their target price on shares of 3M from $250.00 to $262.00 and gave the stock a “buy” rating in a report on Wednesday, October 25th. Jefferies Group raised their target price on shares of 3M to $262.00 and gave the stock a “buy” rating in a report on Wednesday, October 25th. Bank of America raised their target price on shares of 3M from $227.00 to $257.00 and gave the stock a “buy” rating in a report on Wednesday, October 25th. Argus raised their target price on shares of 3M from $220.00 to $260.00 and gave the stock a “buy” rating in a report on Wednesday, October 25th. They noted that the move was a valuation call. Finally, Royal Bank of Canada restated a “hold” rating and set a $205.00 target price on shares of 3M in a report on Friday, October 13th. Three equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and eight have given a buy rating to the company. The company has a consensus rating of “Hold” and a consensus target price of $235.01.

3M (NYSE:MMM) traded up $2.27 during trading on Monday, hitting $248.18. 2,013,400 shares of the stock traded hands, compared to its average volume of 2,080,569. The company has a quick ratio of 1.47, a current ratio of 2.07 and a debt-to-equity ratio of 0.89. The company has a market capitalization of $146,940.00, a PE ratio of 27.70, a PEG ratio of 2.48 and a beta of 1.10. 3M has a twelve month low of $173.55 and a twelve month high of $249.00.

3M (NYSE:MMM) last posted its quarterly earnings data on Tuesday, October 24th. The conglomerate reported $2.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.21 by $0.12. The business had revenue of $8.17 billion during the quarter, compared to analysts’ expectations of $7.93 billion. 3M had a net margin of 17.71% and a return on equity of 48.55%. The business’s revenue was up 6.0% on a year-over-year basis. During the same period last year, the firm posted $2.15 earnings per share. equities research analysts forecast that 3M will post 9.1 earnings per share for the current year.

In related news, VP Ivan K. Fong sold 2,348 shares of the firm’s stock in a transaction that occurred on Friday, October 27th. The shares were sold at an average price of $233.12, for a total value of $547,365.76. Following the completion of the transaction, the vice president now owns 24,479 shares of the company’s stock, valued at approximately $5,706,544.48. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Frank R. Jr. Little sold 1,500 shares of the firm’s stock in a transaction that occurred on Friday, October 27th. The stock was sold at an average price of $234.47, for a total transaction of $351,705.00. The disclosure for this sale can be found here. Insiders sold a total of 22,804 shares of company stock valued at $5,303,706 in the last ninety days. Company insiders own 0.58% of the company’s stock.

Institutional investors have recently bought and sold shares of the stock. MPS Loria Financial Planners LLC purchased a new stake in 3M in the 2nd quarter worth approximately $124,000. Hoertkorn Richard Charles purchased a new stake in 3M in the 3rd quarter worth approximately $126,000. Sawyer & Company Inc purchased a new stake in 3M in the 4th quarter worth approximately $138,000. Harfst & Associates Inc. lifted its position in 3M by 17.0% in the 2nd quarter. Harfst & Associates Inc. now owns 688 shares of the conglomerate’s stock worth $143,000 after buying an additional 100 shares in the last quarter. Finally, Mascoma Wealth Management LLC lifted its position in 3M by 87.5% in the 3rd quarter. Mascoma Wealth Management LLC now owns 750 shares of the conglomerate’s stock worth $157,000 after buying an additional 350 shares in the last quarter. 66.29% of the stock is owned by hedge funds and other institutional investors.

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3M Company Profile

3M Company is a technology company. It operates through five segments. The Industrial segment serves a range of markets, such as automotive original equipment manufacturer and automotive aftermarket, , appliance, paper and printing, packaging, food and beverage, and construction. The Safety and Graphics segment serves a range of markets for the safety, security and productivity of people, facilities and systems.

Analyst Recommendations for 3M (NYSE:MMM)

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