Heavy Insider Trading At 3M Company (MMM)

3M Company (NYSE:MMM) is now being followed by Gordon Haskett, as they initiated the stock at Buy on October 12. Analysts at Credit Suisse, started covering the stock on October 12 with a Outperform rating. Analysts at Morgan Stanley, made their first call about the stock on August 21, recommending it is Equal-Weight. Jefferies analysts came out with bearish views on May 16 when the call was made. They think the stock is now Hold compared to to their prior call for Buy.

3M Company (MMM) hit an intraday high Thursday at $203.08. The shares finished at $202.68, after trading as low as $198.19 earlier in the session. It rose 0.24% in recent trade and currently has a stock-market value of $118.69B. Trading activity significantly improved as the volume at ready counter increased to 2,972,885 shares versus 2,458,095 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,600,858 shares. The stock is now 11.37% above against its bear-market low of $181.98 on October 26, 2018. It has retreated -28.17% since it’s 52-week high of $259.77 reached in January. Now the market price is down -14.93% on the year and down -13.89% YTD.

MMM’s 50 day simple moving average (SMA 50) price is $201.26 and its 200-day simple moving average (SMA 200) price is $207.51. The company’s stock currently has a total float of 581.36M shares. Its weekly volatility is hovering around 2.31% and felt 2.26% volatility in price over a month. On the upside, the share price will test short term resistance at around $204.44. On a downside, the stock is likely to find some support, which begins at $199.55. The failure to get near-term support could push it to $196.43.

Separately, it has been reported that multiple insider activity took place at 3M Company (MMM). Director Page Gregory R acquired 1,000 shares for $5,532 in transaction occurred on 2018/10/26. After making this transaction, the Director owns a direct stake of 184,500 shares, worth $1,121,226, as per the last closing price. On 2018/09/10 Hammes Eric D., Senior Vice President at MMM, dumped 1,272 shares at an average price of $216 per share. The selling total is valued at $884,090.

Senior Vice President, Lindekugel Jon T had divested 6,410 shares for $4,641 through a trade on 2018/08/10. Following this activity, the insider holds 1,301,294 shares worth $940,638 as of recent close. Wall Street’s most bullish 3M Company (NYSE:MMM) analysts are predicting the share price to blow past $243 per share during the next 12 months. The current median share price forecast by them is $210, suggesting that the stock could increase 3.61% in that time frame. The average price target of $210.24 calls for a nearly 3.73% increase in the stock price.

When looking at valuations, 3M Company (MMM) has a pricey P/E of 22.31x as compared to industry average of 16.5x. Moreover, it trades for 18.78 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 11.58x price/book and 3.62x price/sales. Compared to others, 3M Company is in a different league with regards to profitability, having net margins of 13.8%. To put some perspective around this, the industry’s average net margin is 5.26%. MMM’s ROE is 41.9%, which is also considerably better than the industry’s ROE of 11.45%. It’s also very liquid in the near term, with a current ratio of 2. The stock has a debt/capital of 1.45.

Shares of 3M Company (MMM) have gained 0.4% since the company’s last earnings report. Over the past 12 fiscal quarters, 3M Company (NYSE:MMM) has topped consensus earnings estimates in 7 quarters (58%), missed earnings in 2 quarters (16%), whereas at 3 occasion EPS met analyst expectations. MMM last reported earnings on October 23, 2018 when it released Sep-18 results that receded expectations. The company raked in $2.58 per share, -43.05% change on the same period last year. That was worse than consensus for $2.7. Revenue for the recent quarter stood at $8.15 billion, down 0% on last year and below the $8.39 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $7.75 billion to $8.06 billion, which should be compared with $8.16 billion generated last year. EPS is seen in a range of $2.24 to $2.34, against the $2.27 reported a year ago.