Its Stock Has Paid Off Big Time For 3M Company

3M Company (NYSE: MMM) stock fell -6.21% on Tuesday to $115.00 against a previous-day closing price of $122.62. With 10.25 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.86 million shares. During the session, the Specialty Industrial Machinery company that operates in wider Industrials sector, reached to the highest price of $120.00 whereas the lowest price it dropped to was $114.50. The 52-week range on MMM shows that it touched its highest point at $175.25 and its lowest point at $107.07 during that stretch. It currently has a 1-year price target of $129.01. With its current market cap of 62.40 billion, MMM has annualized dividend of $5.96 while the current yield stands at 5.18%. Beta for the stock currently stands at 0.98.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MMM was down-trending over the past week, with a drop of -9.16%, but this was down by -6.85% over a month. Three-month performance dropped to -1.55% while six-month performance fell -14.26%. The stock lost -33.39% in the past year, while it has lost -4.10% so far this year. A look at the trailing 12-month EPS for MMM yields 11.47 with Next year EPS estimates of 10.22. For the next quarter, that number is 2.37. This implies an EPS growth rate of 8.10% for this year and 0.35% for next year. EPS is expected to decline by -0.74% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 4.40%.

Float and Shares Shorts:

At present, 568.80 million MMM shares are outstanding with a float of 535.21 million shares on hand for trading. On Oct 13, 2022, short shares totaled 14.64 million, which was 2.64% higher than short shares on Sep 14, 2022. In addition to Mr. Michael F. Roman as the firm’s Chairman & CEO, Mr. Monish D. Patolawala serves as its Exec. VP and Chief Financial & Transformation Officer.

Institutional Ownership:

Through their ownership of 64.99% of MMM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 35.48% of MMM, in contrast to 32.61% held by mutual funds. Shares owned by individuals account for 0.48%. As the largest shareholder in MMM with 7.99% of the stake, The Vanguard Group, Inc. holds 44,136,404 shares worth 44,136,404. A second-largest stockholder of MMM, SSgA Funds Management, Inc., holds 32,405,350 shares, controlling over 5.86% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in MMM, holding 29,413,412 shares or 5.32% stake. With a 3.08% stake in MMM, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 17,033,443 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.31% of MMM stock, is the second-largest Mutual Fund holder. It holds 12,776,880 shares valued at 1.53 billion. Schwab US Dividend Equity ETF holds 1.57% of the stake in MMM, owning 8,690,881 shares worth 1.04 billion.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MMM since 22 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 4 suggest SELL ratings. Of the remaining analysts, 16 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MMM analysts setting a high price target of $197.00 and a low target of $110.00, the average target price over the next 12 months is $127.36. Based on these targets, MMM could surge 71.3% to reach the target high and fall by -4.35% to reach the target low. Reaching the average price target will result in a growth of 10.75% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MMM will report FY 2023 earnings on 01/23/2024. Analysts have provided yearly estimates in a range of $10.90 being high and $8.65 being low. For MMM, this leads to a yearly average estimate of $10.14. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. 3M Company surprised analysts by -$0.08 when it reported $2.28 EPS against a consensus estimate of $2.36. The surprise factor in the prior quarter was $0.09. Based on analyst estimates, the high estimate for the next quarter is $2.76 and the low estimate is $1.60. The average estimate for the next quarter is thus $2.44.

Summary of Insider Activity:

Insiders traded MMM stock several times over the past three months with 6 Buys and 6 Sells. In these transactions, 10,942 shares were bought while 8,243 shares were sold. The number of buy transactions has increased to 50 while that of sell transactions has risen to 60 over the past year. The total number of shares bought during that period was 146,734 while 80,725 shares were sold.

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