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

3M (NYSE:MMM)’s share price shot up 17.2% during mid-day trading on Friday following a better than expected earnings announcement. The company traded as high as $121.60 and last traded at $121.19. 10,193,788 shares changed hands during mid-day 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 company had revenue of $6.26 billion during the quarter, compared to the consensus estimate of $5.85 billion. During the same period in the previous year, the firm posted $2.17 earnings per share.

3M Cuts Dividend

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

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. UBS Group lifted their price target on shares of 3M from $98.00 to $100.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 1st. Wolfe Research upgraded shares of 3M from a “peer perform” rating to an “outperform” rating and set a $125.00 price target for the company in a research report on Thursday, June 13th. HSBC upgraded shares of 3M from a “hold” rating to a “buy” rating and boosted their price objective for the company from $91.13 to $115.00 in a report on Friday, May 10th. StockNews.com started coverage on shares of 3M in a report on Thursday, June 6th. They set a “buy” rating for the company. Finally, Barclays boosted their price objective on shares of 3M from $118.00 to $120.00 and gave the company an “overweight” rating in a report on Wednesday, July 10th. One research analyst has rated the stock with a sell rating, five have given a hold rating and seven have issued a buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $112.17.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Tributary Capital Management LLC acquired a new position in shares of 3M in the first quarter valued at approximately $25,000. Financial Synergies Wealth Advisors Inc. lifted its position in shares of 3M by 419.1% in the first quarter. Financial Synergies Wealth Advisors Inc. now owns 244 shares of the conglomerate’s stock worth $26,000 after purchasing an additional 197 shares in the last quarter. MFA Wealth Advisors LLC bought a new stake in shares of 3M in the second quarter worth $28,000. Northwest Investment Counselors LLC bought a new stake in 3M during the first quarter worth $32,000. Finally, TruNorth Capital Management LLC bought a new stake in 3M during the second quarter worth $33,000. Institutional investors and hedge funds own 65.25% of the company’s stock.

3M Price Performance

The company has a debt-to-equity ratio of 4.17, a current ratio of 1.64 and a quick ratio of 1.27. The company’s 50-day simple moving average is $101.61 and its 200-day simple moving average is $98.71. The stock has a market capitalization of $67.06 billion, a P/E ratio of -9.53, a price-to-earnings-growth ratio of 1.92 and a beta of 0.95.

3M Company Profile

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.