3M (NYSE:MMM) Shares Gap Up After Strong Earnings

Shares of 3M (NYSE:MMM) gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $126.09, but opened at $133.29. 3M shares last traded at $134.82, with a volume of 1,174,906 shares.

The conglomerate reported $1.88 EPS for the quarter, topping the consensus estimate of $1.77 by $0.11. 3M had a net margin of 15.71% and a return on equity of 100.77%. The business had revenue of $5.80 billion for the quarter, compared to analyst estimates of $5.78 billion.

3M Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, March 12th. Investors of record on Friday, February 14th were paid a dividend of $0.73 per share. This is an increase from 3M’s previous quarterly dividend of $0.70. The ex-dividend date was Friday, February 14th. This represents a $2.92 annualized dividend and a dividend yield of 2.16%. 3M’s dividend payout ratio is presently 38.68%.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on MMM shares. Citigroup decreased their price target on shares of 3M from $152.00 to $142.00 and set a “neutral” rating for the company in a research report on Monday, April 14th. Weiss Ratings restated a “hold (c+)” rating on shares of 3M in a report on Tuesday, April 8th. Bank of America boosted their target price on shares of 3M from $175.00 to $179.00 and gave the stock a “buy” rating in a research report on Thursday, March 6th. Wells Fargo & Company upgraded 3M from an “equal weight” rating to an “overweight” rating and raised their target price for the company from $140.00 to $170.00 in a research note on Wednesday, January 22nd. Finally, Royal Bank of Canada reissued an “underperform” rating and set a $96.00 price target on shares of 3M in a research report on Thursday, February 27th. Two research analysts have rated the stock with a sell rating, three have given a hold rating and twelve have given a buy rating to the company. Based on data from MarketBeat, 3M has an average rating of “Moderate Buy” and an average price target of $146.47.

Insider Activity at 3M

In other news, CAO Theresa E. Reinseth sold 2,309 shares of 3M stock in a transaction that occurred on Friday, January 24th. The shares were sold at an average price of $149.95, for a total value of $346,234.55. Following the completion of the sale, the chief accounting officer now directly owns 4,417 shares in the company, valued at approximately $662,329.15. The trade was a 34.33 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Victoria Clarke sold 1,750 shares of 3M stock in a transaction on Friday, January 31st. The shares were sold at an average price of $154.22, for a total value of $269,885.00. Following the completion of the transaction, the executive vice president now owns 194 shares in the company, valued at approximately $29,918.68. The trade was a 90.02 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 113,639 shares of company stock valued at $17,163,446. 0.34% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Tudor Financial Inc. purchased a new stake in 3M during the third quarter valued at about $259,000. World Investment Advisors LLC increased its stake in shares of 3M by 22.4% during the third quarter. World Investment Advisors LLC now owns 11,768 shares of the conglomerate’s stock valued at $1,609,000 after purchasing an additional 2,155 shares in the last quarter. Wilmington Savings Fund Society FSB boosted its holdings in 3M by 255.1% in the third quarter. Wilmington Savings Fund Society FSB now owns 78,978 shares of the conglomerate’s stock worth $10,796,000 after acquiring an additional 56,734 shares in the last quarter. Tidal Investments LLC boosted its stake in 3M by 44.7% during the 3rd quarter. Tidal Investments LLC now owns 72,733 shares of the conglomerate’s stock valued at $9,943,000 after purchasing an additional 22,461 shares during the last quarter. Finally, Peapack Gladstone Financial Corp lifted its position in 3M by 0.7% during the third quarter. Peapack Gladstone Financial Corp now owns 116,993 shares of the conglomerate’s stock valued at $15,993,000 after purchasing an additional 830 shares during the period. Institutional investors own 65.25% of the company’s stock.

3M Price Performance

The firm has a fifty day moving average price of $144.07 and a two-hundred day moving average price of $138.19. The stock has a market capitalization of $73.06 billion, a P/E ratio of 17.92, a PEG ratio of 3.30 and a beta of 1.01. The company has a debt-to-equity ratio of 2.86, a quick ratio of 1.08 and a current ratio of 1.41.

About 3M

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.