3M Company (NYSE:MMM) Looking Ahead For Another Wild Ride

Stock analysts at Wolfe Research upped their rating on shares of 3M Company (NYSE:MMM) from Underperform to a new rating of Peer Perform in their opinion released on January 09. JP Morgan analysts bumped their recommendation on MMM stock from prior rating of Underweight to Neutral in a separate flash note to investors on December 23. Analysts at UBS downgraded the company stock to a Sell call from its previous Neutral stance, in a flash note that dated back to December 12.

Let’s take a glimpse at some insider activity at 3M Company (NYSE:MMM) and observe the pattern. The earliest insider trade happened on 01/31/2020. Roman Michael F parted with a total of 8.91 thousand shares of the firm at average share price of $162. The total amount for the sale was set at $1.44 million. On completing this exchange, the Chairman, President & CEO account balance was 39.25 thousand shares. The stock lost -0.27 percent from that insider sale. On 12/02/2019, Bushman Julie L, Executive Vice President, did a sale of 6.88 thousand shares at a price of $170.16 per share. This got rid of 1.17 million shares from the insider’s fortune and the stock experienced a -5.05 percent retreat in price since the news became public. This exchange saw 34.52 thousand shares get out from the Executive Vice President account. On 11/13/2019, Senior Vice President Silberhorn Ty R recorded a sale transaction valued at $278.96 thousand. The sale at $170.72 a share has eliminated 1.63 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -5.36 percent decrease since the transaction reporting date. The company insider is left with 0.33 thousand shares remaining in the account. Ashish Khandpur K, who works as Executive Vice President at the company, performed a sale of 3.36 thousand shares in a transaction worth $585.66 thousand. The disposal recorded on 11/05/2019 was priced at $174.2 per share. The stock price plunged -7.25 percent since the transaction. Ashish Khandpur K currently holds a stake of 12.18 thousand in MMM stock which is worth $1.97 million after the insider selling.

3M Company (MMM) is most likely going to rise 6.71 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $200 as 12-month high price target. This represents a whopping 23.77 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $175.5, which means a return possibility of 8.61 percent in comparison with the closing price of the stock of $161.59 in recent trading session. The lowest price set for the stock is $150 which is just above -7.17 percent from MMM share’s price at the end of session.

The stock is lingering around the initial support level of $156.17. After this, the following support is at the zone of $155.11. Up until the time the MMM stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 35.8 on the daily chart, and this may be a cause for comfort. In case the price goes below $155.11 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $159.13 level may cause a pull-back move approaching $161.03 mark.

In the recent trading session, 3M Company (NYSE:MMM) shares gained 2.77% or 4.35 points to reach at $161.59 with a thin trading volume of 1.509 million shares. It opened the trading session at $159.77, the shares rose to $159.96 and dropped to $157, the range by which the price of stock traded the whole session. The company now has a market cap of $92.6 billion and currently has 589.14 million outstanding shares. 3M Company (MMM) stock has plunged -11.89 percent of market value in 21 trading days.

MMM stock’s trailing 3-year beta is 1.11, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $7.82 share in the trailing 52 weeks. The stock’s value fallen -10.87 percent year to date (YTD) compared to a decline of -21.46 percent in 52 week’s period. The firm’s shares are still trading -26.47 percent below its 1-year high of $219.75 and 7.31 percent up from 52-week low of $150.58. The average consensus ranking on the company is 3.1, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a hold.

3M Company (MMM) shares are trading at a P/E ratio of 20.31 times earnings posted in the trailing 12 months. The industry MMM deals with has an average P/E of 20.1. Its P/B ratio is standing at 9.01X compared to the 5.82 industry average. It is additionally sporting a 3.16 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.48. 3M Company has a 46.8% gross profit margin, with its operating margin around 20.5%. Alongside this, the company’s net profit margin currently stands at 15.3%.

Past records have indicated that shares in 3M Company declined on 22 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of MMM’s Q1 earnings on April 28. Analysts are predicting revenue to climb 2.6 percent to $8.23B in the financial first quarter, while EPS will soar by about -4.04 percent to $2.14 per share. In the last quarter, it’s earnings of $2.13 per share came better than the $2.07175, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $7.99B, missing the $8.2B analysts had expected. Earnings are seen to rise by 0.1 percent this year, 6.73 percent in the coming year and the trend continues by 4.53 percent every year in the next 5 years.