3M (NYSE:MMM) Reaches New 52-Week High on Better-Than-Expected Earnings

3M (NYSE:MMM) shares hit a new 52-week high on Tuesday following a stronger than expected earnings report. The company traded as high as $97.30 and last traded at $97.13, with a volume of 4966422 shares. The stock had previously closed at $92.16.

The conglomerate reported $2.39 earnings per share for the quarter, beating analysts’ consensus estimates of $2.10 by $0.29. 3M had a positive return on equity of 95.80% and a negative net margin of 21.57%. The firm had revenue of $8 billion for the quarter, compared to analysts’ expectations of $7.64 billion. During the same quarter last year, the firm earned $1.97 earnings per share.

3M Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 12th. Stockholders of record on Friday, February 16th were issued a dividend of $1.51 per share. The ex-dividend date of this dividend was Thursday, February 15th. This represents a $6.04 dividend on an annualized basis and a dividend yield of 6.14%. This is a boost from 3M’s previous quarterly dividend of $1.50. 3M’s payout ratio is presently -47.48%.

Analysts Set New Price Targets

A number of brokerages have weighed in on MMM. Royal Bank of Canada lifted their price target on shares of 3M from $78.00 to $87.00 and gave the company an “underperform” rating in a research report on Wednesday. Wells Fargo & Company reduced their target price on shares of 3M from $112.00 to $105.00 and set an “equal weight” rating on the stock in a report on Wednesday, January 24th. Mizuho reiterated a “neutral” rating and issued a $105.00 price target on shares of 3M in a report on Wednesday, March 27th. Bank of America cut their price objective on 3M from $110.00 to $100.00 and set a “neutral” rating on the stock in a research report on Tuesday, April 2nd. Finally, JPMorgan Chase & Co. raised 3M from a “neutral” rating to an “overweight” rating and upped their target price for the stock from $110.00 to $111.00 in a research report on Wednesday. One analyst has rated the stock with a sell rating, eight have issued a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $103.70.

Insiders Place Their Bets

In other news, insider Rodriguez Beatriz Karin Chavez sold 426 shares of the company’s stock in a transaction that occurred on Wednesday, February 14th. The stock was sold at an average price of $92.32, for a total transaction of $39,328.32. Following the completion of the transaction, the insider now directly owns 3,966 shares of the company’s stock, valued at $366,141.12. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.34% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On 3M

Several hedge funds and other institutional investors have recently modified their holdings of the company. Fragasso Group Inc. boosted its stake in 3M by 3.8% during the 3rd quarter. Fragasso Group Inc. now owns 2,556 shares of the conglomerate’s stock valued at $239,000 after purchasing an additional 93 shares during the period. Bangor Savings Bank boosted its position in shares of 3M by 1.0% during the fourth quarter. Bangor Savings Bank now owns 10,489 shares of the conglomerate’s stock worth $1,147,000 after buying an additional 104 shares during the period. Allen Capital Group LLC boosted its position in shares of 3M by 0.5% during the fourth quarter. Allen Capital Group LLC now owns 20,931 shares of the conglomerate’s stock worth $2,288,000 after buying an additional 105 shares during the period. Summit Financial Group Inc. grew its holdings in 3M by 3.4% in the 1st quarter. Summit Financial Group Inc. now owns 3,316 shares of the conglomerate’s stock worth $352,000 after buying an additional 110 shares in the last quarter. Finally, N.E.W. Advisory Services LLC increased its position in 3M by 4.0% in the 3rd quarter. N.E.W. Advisory Services LLC now owns 2,900 shares of the conglomerate’s stock valued at $272,000 after acquiring an additional 111 shares during the period. Institutional investors and hedge funds own 65.25% of the company’s stock.

3M Stock Up 2.0 %

The company has a debt-to-equity ratio of 4.17, a quick ratio of 0.76 and a current ratio of 1.64. The firm has a 50 day simple moving average of $95.96 and a two-hundred day simple moving average of $97.55. The stock has a market cap of $54.46 billion, a P/E ratio of -7.74, a P/E/G ratio of 2.13 and a beta of 1.00.

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.