3M (NYSE:MMM) Trading 17.2% Higher on Earnings Beat

3M (NYSE:MMM) traded up 17.2% on Friday following a stronger than expected earnings report. The stock traded as high as $121.60 and last traded at $121.19. 10,193,788 shares were traded during trading, an increase of 94% from the average session volume of 5,248,163 shares. The stock had previously closed at $103.39.

The conglomerate reported $1.93 earnings per share for the quarter, topping analysts’ consensus estimates of $1.66 by $0.27. 3M had a negative net margin of 21.57% and a positive return on equity of 95.80%. The business had revenue of $6.26 billion for the quarter, compared to analysts’ expectations of $5.85 billion. During the same period in the prior year, the company posted $2.17 EPS.

3M Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 12th. Stockholders of record on Friday, May 24th were paid a dividend of $0.70 per share. The ex-dividend date of this dividend was Thursday, May 23rd. This represents a $2.80 dividend on an annualized basis and a dividend yield of 2.31%. 3M’s dividend payout ratio (DPR) is presently -22.01%.

Analyst Ratings Changes

A number of research firms have recently weighed in on MMM. Wolfe Research raised shares of 3M from a “peer perform” rating to an “outperform” rating and set a $125.00 price target on the stock in a research note on Thursday, June 13th. StockNews.com began coverage on shares of 3M in a research report on Thursday, June 6th. They issued a “buy” rating on the stock. HSBC upgraded shares of 3M from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $91.13 to $115.00 in a research report on Friday, May 10th. Bank of America upgraded shares of 3M from a “neutral” rating to a “buy” rating and increased their price objective for the stock from $105.00 to $120.00 in a report on Friday, June 7th. Finally, JPMorgan Chase & Co. raised shares of 3M from a “neutral” rating to an “overweight” rating and increased their target price for the stock from $110.00 to $111.00 in a research report on Wednesday, May 1st. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat, 3M currently has a consensus rating of “Hold” and a consensus price target of $112.17.

Hedge Funds Weigh In On 3M

Several large investors have recently added to or reduced their stakes in MMM. Assenagon Asset Management S.A. lifted its stake in 3M by 1.4% during the fourth quarter. Assenagon Asset Management S.A. now owns 20,054 shares of the conglomerate’s stock worth $2,192,000 after purchasing an additional 280 shares during the last quarter. Austin Private Wealth LLC bought a new stake in 3M in the fourth quarter valued at $220,000. McGlone Suttner Wealth Management Inc. bought a new stake in 3M in the fourth quarter valued at $225,000. Global Retirement Partners LLC lifted its stake in 3M by 6.0% in the fourth quarter. Global Retirement Partners LLC now owns 6,274 shares of the conglomerate’s stock valued at $675,000 after buying an additional 354 shares during the last quarter. Finally, Caprock Group LLC lifted its stake in 3M by 46.2% in the fourth quarter. Caprock Group LLC now owns 13,525 shares of the conglomerate’s stock valued at $1,479,000 after buying an additional 4,277 shares during the last quarter. 65.25% of the stock is currently owned by institutional investors.

3M Price Performance

The company has a quick ratio of 1.27, a current ratio of 1.64 and a debt-to-equity ratio of 4.17. The company has a market capitalization of $67.06 billion, a P/E ratio of -9.53, a PEG ratio of 1.92 and a beta of 0.95. The business has a 50 day simple moving average of $101.61 and a 200-day simple moving average of $98.71.

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.