3M Company (MMM): Technicals Say You should Hold


3M Company (NYSE:MMM) saw a downside of -6.21% to close Tuesday at $115.00 after subtracting -$7.62 on the day. The 5-day average trading volume is 5,457,760 shares of the company’s common stock. It has gained $127.19 in the past week and touched a new high 1 time within the past 5 days. An average of 3,090,485 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,967,922.

MMM’s 1-month performance is -6.85% or -$5.14 on its low of $114.50 reached on 01/24/23. The company’s shares have touched a 52-week low of $107.07 and high of $175.25, with the stock’s rally to the 52-week high happening on 01/17/23. YTD, MMM has lost -4.10% or -$4.92 and has reached a new high 6 times. However, the current price is down -34.38% from the 52-week high price.

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Insider Transactions

MMM stock investors last saw insider trading activity on Oct 28.Chavez Rodriguez Beatriz Karin (SVP & Chief Strategy Officer) most recently sold 1,071 shares at $126.28 per share on Oct 28. This transaction cost the insider $135,246. EVP & Chief Legal Officer, Rhodes Kevin H, sold 5,703 shares at a price of $126.40 on Oct 28. Then, on Aug 17, EVP & Chief Count Gov Svc Off Hammes Eric D. sold 3,145 shares at a price of $147.31 per share. This transaction amounted to $463,294.

Valuation Metrics

MMM stock has a beta of 0.98. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 1.79 while the price-to-book (PB) in the most recent quarter is 4.65, with the price to cash flow ratio at 130.81.

3M Company’s quick ratio for the period ended September 29 was 1.00, with the current ratio over the same period at 1.60. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.98, while the total debt to equity was 1.12.. In terms of profitability, the gross margin trailing 12 months is 44.40%. The firm’s gross profit as reported stood at $16.56 billion against revenue of $35.35 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 62.84% to $3.86 billion, while revenue of $78.0 million was 97.98% off the previous quarter. Analysts expected MMM to announce $2.6 per share in earnings in its latest quarter, but it posted $2.69, representing a 3.50% surprise. EBITDA for the quarter stood at more than $4.61 billion. MMM stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 32.02 billion, with total debt at $16.63 billion. Shareholders hold equity totaling $552.74 million.

Let’s look briefly at 3M Company (MMM) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 31.24% to suggest the stock is trending Neutral, with historical volatility in this time period at 40.64%.

The stock’s 5-day moving average is $119.89, reflecting a -9.16% or -$11.60 change from its current price. MMM is currently trading -5.42% above its 20-day SMA, -7.90% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -7.13% and SMA200 by-23.49%.

Stochastic %K and %D was 25.82% and 24.64% and the average true range (ATR) pointed at 3.72. The RSI (14) points at 35.79%, while the 14-day stochastic is at 3.25% with the period’s ATR at 3.44. The stock’s 9-day MACD Oscillator is pointing at -4.36 and -5.13 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for 3M Company (NYSE: MMM), UBS upgraded it to a Neutral rating. They previously had a Sell rating on the stock. Analysts offering their rating for MMM stock have a consensus rating for the stock as Hold. Currently, 4 brokerage advisors rate MMM as a “sell,”, while 16 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 1 rates the stock as overweight while 0 have offered a “buy” rating.

What is MMM’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $110.00 and a high of $197.00, with their median price target at $124.00. Looking at these predictions, the average price target given by analysts is for 3M Company (MMM) stock is $127.36.


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