3M (NYSE:MMM) Shares Gap Up After Earnings Beat

3M (NYSE:MMM - Get Free Report)'s share price gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $126.09, but opened at $133.29. 3M shares last traded at $134.82, with a volume of 1,174,906 shares trading hands.

The conglomerate reported $1.88 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.77 by $0.11. 3M had a return on equity of 100.77% and a net margin of 15.71%. The company had revenue of $5.80 billion during the quarter, compared to the consensus estimate of $5.78 billion.

3M Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, March 12th. Stockholders of record on Friday, February 14th were paid a dividend of $0.73 per share. This represents a $2.92 dividend on an annualized basis and a dividend yield of 2.12%. This is a boost from 3M's previous quarterly dividend of $0.70. The ex-dividend date of this dividend was Friday, February 14th. 3M's payout ratio is presently 38.68%.

Wall Street Analysts Forecast Growth

MMM has been the topic of a number of research analyst reports. Citigroup reduced their target price on 3M from $152.00 to $142.00 and set a "neutral" rating on the stock in a research note on Monday, April 14th. Weiss Ratings reiterated a "hold (c+)" rating on shares of 3M in a report on Tuesday, April 8th. Royal Bank of Canada boosted their price objective on shares of 3M from $98.00 to $100.00 and gave the company an "underperform" rating in a research report on Wednesday. JPMorgan Chase & Co. decreased their target price on 3M from $165.00 to $140.00 and set an "overweight" rating for the company in a research report on Tuesday, April 8th. Finally, Wells Fargo & Company raised shares of 3M from an "equal weight" rating to an "overweight" rating and lifted their price target for the company from $140.00 to $170.00 in a research report on Wednesday, January 22nd. Two equities research analysts have rated the stock with a sell rating, three have assigned a hold rating and twelve have assigned a buy rating to the company's stock. According to data from MarketBeat, 3M has a consensus rating of "Moderate Buy" and a consensus price target of $147.00.

Insider Activity

In other news, insider Rodriguez Beatriz Karin Chavez sold 1,645 shares of the company's stock in a transaction on Monday, January 27th. The stock was sold at an average price of $150.25, for a total transaction of $247,161.25. Following the sale, the insider now owns 5,153 shares of the company's stock, valued at approximately $774,238.25. This represents a 24.20 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Victoria Clarke sold 1,750 shares of the company's stock in a transaction dated Friday, January 31st. The stock was sold at an average price of $154.22, for a total value of $269,885.00. Following the sale, the executive vice president now owns 194 shares in the company, valued at approximately $29,918.68. This trade represents a 90.02 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 113,639 shares of company stock valued at $17,163,446 in the last 90 days. Company insiders own 0.34% of the company's stock.

Institutional Trading of 3M

Institutional investors have recently bought and sold shares of the business. Intelligent Financial Strategies purchased a new position in shares of 3M in the 1st quarter valued at $42,000. Holistic Planning LLC acquired a new stake in shares of 3M during the first quarter worth about $206,000. PDS Planning Inc lifted its holdings in shares of 3M by 7.0% in the 1st quarter. PDS Planning Inc now owns 5,188 shares of the conglomerate's stock valued at $762,000 after purchasing an additional 340 shares during the last quarter. MFG Wealth Management Inc. acquired a new stake in shares of 3M in the 1st quarter valued at about $1,059,000. Finally, GenTrust LLC acquired a new stake in shares of 3M in the 1st quarter valued at about $205,000. 65.25% of the stock is owned by hedge funds and other institutional investors.

3M Stock Up 1.2 %

The stock has a market cap of $74.27 billion, a PE ratio of 18.18, a P/E/G ratio of 3.30 and a beta of 1.01. The business has a 50 day moving average of $143.57 and a 200-day moving average of $138.17. The company has a current ratio of 1.41, a quick ratio of 1.08 and a debt-to-equity ratio of 2.86.

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.