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Tag: 3M

  • 3M Stock Crashes Again: Buy, Sell, or Hold the Stock?

    3M Stock Crashes Again: Buy, Sell, or Hold the Stock?

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    Investors in 3M (NYSE: MMM) hoped the industrial giant’s restructuring efforts would show up in its numbers for the fourth quarter and outlook for 2024. However, 3M continues to remind investors about the many problems it is dogged with, particularly legal issues that have weighed heavily on the company’s growth and prospects in recent years. That explains why 3M stock crashed by double digits on Tuesday after earnings.

    To be fair, 3M still beat its earnings guidance in 2023 and exited the year with strong cash flows. Management now believes simplifying the organization structure, finalizing legal settlements, and completing strategic moves like spinning off its healthcare business should help 3M deliver a “successful” 2024.

    Key 3M numbers you must know

    3M’s sales fell 0.8% year over year in Q4 and were down 4.5% in 2023. Organic sales fell 3% year over year in Q4. End markets played out as expected, with softness lingering in consumer retail and electronics markets. China also continues to be a weak spot for 3M.

    3M’s adjusted earnings per share (EPS) in Q4, however, rose 11% year over year, driven by restructuring and a lower-than-expected tax rate. For the full year, though, 3M’s adjusted EPS fell roughly 6.5% to $9.24 a share. 3M ended 2023 with an adjusted free cash flow of $6.3 billion, versus its original guidance of $4.2 billion to $5 billion.

    Buy, sell, or hold 3M stock?

    3M expects to earn adjusted EPS of only $9.35 to $9.75 per share. That’s below consensus estimates and does not reflect the impact of 3M’s upcoming healthcare spinoff and potential lawsuit settlements. Management, however, believes there are “significant” opportunities to expand margins and cash flows in 2024 as it continues with its restructuring efforts, identifies low-return products and businesses to exit, invests in newer markets, and focuses on reducing legal risks.

    There’s something investors must understand here: There are too many factors at play when it comes to 3M, which makes it harder to build conviction in the stock. To give you an example, 3M’s restructuring should largely be complete by the end of 2024, which should save it costs and boost margins. At the same time, divestiture of its healthcare business will mean a loss of earnings and cash flows for the company.

    Here’s what that means: 3M’s stock is trading significantly below its five-year average price-to-sales and price-to-cash flow and is offering a dividend yield of 5.6%, which is undeniably a value buy for long-term investors. The keyword here is long term, though: You may not want to expect much from 3M stock in the near term as the company navigates challenges. Instead, base your investing thesis on what management can do in the long term to revive the company.

    Should you invest $1,000 in 3M right now?

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    3M Stock Crashes Again: Buy, Sell, or Hold the Stock? was originally published by The Motley Fool

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  • 3M to pay $6 billion to settle claims it sold defective earplugs to U.S. military

    3M to pay $6 billion to settle claims it sold defective earplugs to U.S. military

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    Manufacturing giant 3M on Tuesday said it will pay $6 billion to resolve legal claims over its Combat Arms Earplug products, which some military veterans claimed left them with hearing loss and tinnitus. 

    3M said in a statement that the settlement, which resolves claims against 3M and Aearo Technologies, “is not an admission of liability.” It added that the products are “safe and effective when used properly” and that it would defend itself in court if the terms of the settlement aren’t fulfilled. 

    Under the agreement, 3M will pay $5 billion in cash and $1 billion in 3M common stock between 2023 and 2029. The company said it will take a pre-tax charge of $4.2 billion in the third quarter because of the settlement.

    The agreement comes after veterans claimed the Combat Arms Earplug products left them with hearing loss and tinnitus, or a ringing in the ears, after using the devices in close proximity to small arms, heavy artillery and rockets. One veteran told CBS News in 2019 that the effect of tinnitus, which he believed he developed after using the 3M earplugs, was “torture.”

    “What is quiet? What’s peace? I know for me personally, I don’t have it. All I hear is ringing if there’s no noise around me,” Joseph Junk, who served in the U.S. military for three years, told CBS News. “If I do not have noise around me, it’s maddening. It is torture.”

    This is a developing story.

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  • 3M Nears Roughly $5.5 Billion Earplugs Settlement

    3M Nears Roughly $5.5 Billion Earplugs Settlement

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    3M Nears Roughly $5.5 Billion Earplugs Settlement

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  • F5, Logitech, Cadence Design, GE, GM, Microsoft, Alphabet, and More Stock Market Movers

    F5, Logitech, Cadence Design, GE, GM, Microsoft, Alphabet, and More Stock Market Movers

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    https://www.barrons.com/articles/stock-market-movers-9cc9fac3

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  • 3M in $10.3 billion settlement over

    3M in $10.3 billion settlement over

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    Traverse City, Mich. — Chemical manufacturer 3M Co. will pay at least $10.3 billion to settle lawsuits over contamination of many U.S. public drinking water systems with potentially harmful compounds used in firefighting foam and a host of consumer products, the company said Thursday.

    The deal would compensate water providers for pollution with per- and polyfluorinated substances, known collectively as PFAS – a broad class of chemicals used in nonstick, water- and grease-resistant products such as clothing and cookware.

    Described as “forever chemicals” because they don’t degrade naturally in the environment, PFAS have been linked to a variety of health problems, including liver and immune-system damage and some cancers.

    The compounds have been detected at varying levels in drinking water around the nation. The Environmental Protection Agency in March proposed strict limits on two common types, PFOA and PFOS, and said it wanted to regulate four others. Water providers would be responsible for monitoring their systems for the chemicals.

    The agreement would settle a case that was scheduled for trial earlier this month involving a claim by Stuart, Florida, one of about 300 communities that have filed similar suits against companies that produced firefighting foam or the PFAS it contained.

    3M chairman Mike Roman said the deal was “an important step forward” that builds on the company’s decision in 2020 to phase out PFOA and PFOS and its investments in “state-of-the-art water filtration technology in our chemical manufacturing operations.” The company, based in St. Paul, Minnesota, will halt all PFAS production by the end of 2025, he said.

    3M said its participation in the settlement “is not an admission of liability” and said if it was rejected in court, “3M is prepared to continue to defend itself.”  

    The settlement will be paid over 13 years and could reach as high as $12.5 billion, depending on how many public water systems detect PFAS during testing that EPA has required in the next three years, said Dallas-based attorney Scott Summy, one of the lead attorneys for those suing 3M and other manufacturers.

    The payment will help cover costs of filtering PFAS from systems where it’s been detected and testing others, he said.

    “The result is that millions of Americans will have healthier lives without PFAS in their drinking water,” Summy said.

    Earlier this month, three other companies – DuPont de Nemours Inc. and spinoffs Chemours Co. and Corteva Inc. – reached a $1.18 billion deal to resolve PFAS complaints by about 300 drinking water providers. A number of states, airports, firefighter training facilities and private well owners also have sued.

    The cases are pending in U.S. District Court in Charleston, South Carolina, where Judge Richard Gergel is overseeing thousands of complaints alleging PFAS damages.

    Most of the lawsuits have stemmed from firefighter training exercises at airports, military bases and other sites around the U.S. that repeatedly used foams laced with high concentrations of PFAS, Summy said.

    The 3M settlement is subject to court approval, he said.

    3M’s website says the company helped the U.S. Navy develop foams containing PFAS chemicals in the 1960s.

    “This was an important and life-saving tool that helped combat dangerous fires, like those caused by jet fuel,” the company said.

    The cost of cleansing PFAS from U.S. water systems eventually could go much higher than the sums agreed to in the settlements, Summy acknowledged.

    “I’m not sure anyone knows what that ultimate number will be,” he said. “But I do think this is going to make a huge dent in that cost … and you don’t have to litigate for the next decade or longer.”

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  • Zoom to Lay Off 15% of Staff, CEO Slashes Salary

    Zoom to Lay Off 15% of Staff, CEO Slashes Salary

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    Zoom to Lay Off 15% of Staff, CEO Slashes Salary

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  • 3M to Cut 2,500 Manufacturing Jobs >MMM

    3M to Cut 2,500 Manufacturing Jobs >MMM

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    By Colin Kellaher

    3M Co. on Tuesday said it plans to cut about 2,500 manufacturing jobs around the world, as the conglomerate braces for macroeconomic challenges this year.
    

    The St. Paul, Minn., company said the job cuts, which are based on what it is seeing in its end markets, are needed to align with adjusted production volumes.
    

    

    3M joins a raft U.S. companies that are slashing staff at the start of the year amid waning demand and weaker revenue.
    

    3M, which has about 95,000 employees according to data from FactSet, said it expects to book a pretax restructuring charge of $75 million to $100 million in the first quarter.
    

    Write to Colin Kellaher at colin.kellaher@wsj.com
    

    

    

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    Versor Investments LP Reduces Stake in 3M (NYSE:MMM)
    
			
    Versor Investments LP Reduces Stake in 3M (NYSE:MMM)
    
			
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    Versor Investments LP lowered its stake in shares of 3M (NYSE:MMM – Get Rating) by 4.2% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 14,512 shares of the conglomerate’s stock after selling 638 shares during the period. Versor Investments LP’s holdings in 3M were worth $1,604,000 at the end of the most recent quarter. 
    

    Other hedge funds also recently modified their holdings of the company. Markel Corp raised its stake in shares of 3M by 6.5% in the first quarter. Markel Corp now owns 269,750 shares of the conglomerate’s stock valued at $40,161,000 after buying an additional 16,550 shares during the period. Axiom Financial Strategies LLC raised its stake in 3M by 5.3% in the 1st quarter. Axiom Financial Strategies LLC now owns 6,513 shares of the conglomerate’s stock valued at $942,000 after acquiring an additional 326 shares during the period. Private Portfolio Partners LLC lifted its holdings in 3M by 7.7% during the first quarter. Private Portfolio Partners LLC now owns 2,483 shares of the conglomerate’s stock valued at $370,000 after purchasing an additional 177 shares during the last quarter. Operose Advisors LLC boosted its position in 3M by 322.7% during the first quarter. Operose Advisors LLC now owns 596 shares of the conglomerate’s stock worth $89,000 after purchasing an additional 455 shares during the period. Finally, Kinloch Capital LLC raised its position in shares of 3M by 8.1% in the first quarter. Kinloch Capital LLC now owns 16,157 shares of the conglomerate’s stock valued at $2,405,000 after purchasing an additional 1,211 shares during the period. Institutional investors own 65.61% of the company’s stock. 
    

    3M Stock Down 0.5 %
    

    Shares of MMM opened at $119.92 on Tuesday. 3M has a 1 year low of $107.07 and a 1 year high of $181.78. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.56 and a quick ratio of 0.97. The stock has a 50 day simple moving average of $124.86 and a two-hundred day simple moving average of $126.80. The firm has a market cap of $66.28 billion, a P/E ratio of 10.45, a P/E/G ratio of 1.24 and a beta of 1.00. 
    

    


    

    3M (NYSE:MMM – Get Rating) last announced its quarterly earnings data on Tuesday, October 25th. The conglomerate reported $2.69 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.61 by $0.08. The company had revenue of $8.60 billion during the quarter, compared to analysts’ expectations of $8.70 billion. 3M had a net margin of 18.91% and a return on equity of 40.03%. The firm’s revenue was down 3.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.45 EPS. On average, analysts forecast that 3M will post 10.22 earnings per share for the current fiscal year. 
    

    3M Dividend Announcement
    

    The business also recently disclosed a quarterly dividend, which was paid on Monday, December 12th. Stockholders of record on Friday, November 18th were issued a $1.49 dividend. The ex-dividend date was Thursday, November 17th. This represents a $5.96 annualized dividend and a dividend yield of 4.97%. 3M’s dividend payout ratio is currently 51.92%. 
    

    Analysts Set New Price Targets
    

    A number of research firms recently weighed in on MMM. Wells Fargo & Company reduced their price objective on shares of 3M from $125.00 to $122.00 and set an “equal weight” rating for the company in a research note on Wednesday, October 26th. Credit Suisse Group dropped their price objective on 3M to $127.00 in a report on Thursday, October 27th. Morgan Stanley lifted their target price on 3M from $108.00 to $110.00 and gave the company an “underweight” rating in a report on Wednesday, October 26th. StockNews.com assumed coverage on shares of 3M in a report on Wednesday, October 12th. They issued a “hold” rating on the stock. Finally, Barclays decreased their target price on shares of 3M from $137.00 to $130.00 and set an “underweight” rating on the stock in a report on Monday, October 3rd. Three analysts have rated the stock with a sell rating and ten have issued a hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $133.57.
    

    Insider Activity
    

    In related news, SVP Rodriguez Beatriz Karin Chavez sold 1,071 shares of the firm’s stock in a transaction that occurred on Friday, October 28th. The stock was sold at an average price of $126.28, for a total transaction of $135,245.88. Following the transaction, the senior vice president now directly owns 3,313 shares in the company, valued at approximately $418,365.64. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. In related news, SVP Rodriguez Beatriz Karin Chavez sold 1,071 shares of the company’s stock in a transaction on Friday, October 28th. The shares were sold at an average price of $126.28, for a total transaction of $135,245.88. Following the completion of the sale, the senior vice president now directly owns 3,313 shares in the company, valued at approximately $418,365.64. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Kevin H. Rhodes sold 5,703 shares of the firm’s stock in a transaction on Friday, October 28th. The stock was sold at an average price of $126.40, for a total transaction of $720,859.20. Following the completion of the sale, the executive vice president now directly owns 2,033 shares in the company, valued at approximately $256,971.20. The disclosure for this sale can be found here. 0.39% of the stock is currently owned by corporate insiders. 
    

    3M Company Profile
    

     (Get Rating)
    

    3M Company operates as a diversified technology company worldwide. It operates through four segments: Safety and Industrial; Transportation and Electronics; Health Care; and Consumer. The 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.
    

    Further Reading
    

    Want to see what other hedge funds are holding MMM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for 3M (NYSE:MMM – Get Rating).
    

    Institutional Ownership by Quarter for 3M (NYSE:MMM)
    

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