3M (NYSE:MMM) Trading 2.7% Higher After Strong Earnings

3M (NYSE:MMM) rose 2.7% during trading on Wednesday following a stronger than expected earnings report. The company traded as high as $99.70 and last traded at $99.13. Approximately 4,265,833 shares were traded during mid-day trading, a decline of 27% from the average daily volume of 5,827,912 shares. The stock had previously closed at $96.51.

The conglomerate reported $2.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.10 by $0.29. 3M had a positive return on equity of 62.45% and a negative net margin of 21.40%. The company had revenue of $8 billion during the quarter, compared to analysts’ expectations of $7.64 billion. During the same quarter in the prior year, the business posted $1.97 earnings per share.

3M Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 12th. Shareholders of record on Friday, February 16th were given a dividend of $1.51 per share. This represents a $6.04 dividend on an annualized basis and a dividend yield of 6.09%. This is an increase from 3M’s previous quarterly dividend of $1.50. The ex-dividend date of this dividend was Thursday, February 15th. 3M’s payout ratio is -47.82%.

Wall Street Analyst Weigh In

A number of research analysts recently commented on MMM shares. Barclays lowered their price objective on shares of 3M from $126.00 to $107.00 and set an “overweight” rating on the stock in a research note on Tuesday, April 2nd. Citigroup boosted their price objective on 3M from $95.31 to $98.00 and gave the stock a “neutral” rating in a research note on Monday, April 8th. JPMorgan Chase & Co. raised 3M from a “neutral” rating to an “overweight” rating and raised their target price for the company from $110.00 to $111.00 in a research note on Wednesday. Bank of America cut their price target on shares of 3M from $110.00 to $100.00 and set a “neutral” rating for the company in a report on Tuesday, April 2nd. Finally, Royal Bank of Canada dropped their target price on shares of 3M from $84.00 to $78.00 and set an “underperform” rating on the stock in a report on Tuesday, April 2nd. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating, two have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $104.10.

Insiders Place Their Bets

In other news, insider Rodriguez Beatriz Karin Chavez sold 426 shares of the business’s stock in a transaction that occurred on Wednesday, February 14th. The shares were sold at an average price of $92.32, for a total transaction of $39,328.32. Following the sale, the insider now owns 3,966 shares in the company, valued at $366,141.12. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.38% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of MMM. Tributary Capital Management LLC purchased a new position in 3M during the 1st quarter valued at about $25,000. Financial Synergies Wealth Advisors Inc. grew its position in 3M by 419.1% during the first quarter. Financial Synergies Wealth Advisors Inc. now owns 244 shares of the conglomerate’s stock valued at $26,000 after purchasing an additional 197 shares in the last quarter. Northwest Investment Counselors LLC acquired a new position in 3M in the 1st quarter valued at approximately $32,000. Briaud Financial Planning Inc purchased a new stake in 3M in the 3rd quarter worth approximately $35,000. Finally, Livelsberger Financial Advisory acquired a new stake in shares of 3M during the 4th quarter valued at $35,000. Hedge funds and other institutional investors own 65.25% of the company’s stock.

3M Stock Up 2.7 %

The company has a debt-to-equity ratio of 2.69, a quick ratio of 0.76 and a current ratio of 1.07. The company has a market cap of $54.85 billion, a price-to-earnings ratio of -7.85, a price-to-earnings-growth ratio of 1.75 and a beta of 1.02. The business’s 50 day simple moving average is $95.82 and its 200-day simple moving average is $97.54.

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.