|Bid||169.10 x 1200|
|Ask||169.29 x 800|
|Day's Range||168.43 - 170.26|
|52 Week Range||168.43 - 219.75|
|Beta (3Y Monthly)||1.09|
|PE Ratio (TTM)||17.87|
|Forward Dividend & Yield||5.76 (3.04%)|
|1y Target Est||N/A|
Shares of 3M Co. kept sinking Friday, toward the lowest close in years, after Wall Street’s most bearish analyst got even more bearish, citing the company’s overly optimistic growth outlook at a time of very high inventory levels.
J.P. Morgan analyst Stephen Tusa said in a note that 3M's "premium valuation is unjustified by undifferentiated fundamentals," with growth excluding mergers and acquisitions likely decelerating and benefits to margins fading. 3M's quarterly dividend is "on watch for a cut, after 37 straight years of increase," Tusa said. J.P. Morgan pointed to 3M's growing list of liabilities as another risk to the company's earnings-per-share growth.
Investing.com - U.S. stocks closed lower on reports U.S.-China trade talks had stalled, with both sides upping the ante in recent days.
For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating.
3M (MMM) might suffer from weakness in Safety & Industrial, and Transportation & Electronics segments as well as high costs, rise in tax rate and forex woes.
Moody's has not assigned a rating to the GBP M Class Z Mortgage Backed Floating Rate Notes due . The Notes are backed by a static pool of UK Buy-to-Let ("BTL") mortgage loans originated by Shawbrook Bank Limited ("Shawbrook"). The Reserve Fund will be funded to [1.5]% of the total rated Notes balance at closing and the total credit enhancement for the Class A Notes will be [16.9]%.
As a legacy stalwart, 3M (NYSE:MMM) almost appears destined to follow in the footsteps of other Dow Jones losers. Last year, MMM stock crumbled, shedding 17%. Even worse, 3M rarely looked competitive. This year seemed to hold some promise, with shares up nearly 16% in mid-April compared to the January opener. Then, the company released its first quarter of 2019 earnings results.Source: Dean Hochman via Flickr (Modified)To say that 3M stock stunk up the markets would be an understatement. Prior to the disclosure, covering analysts pegged earnings per share at $2.49. Unfortunately for stakeholders, 3M delivered only $2.23. To make matters worse, this was a far cry from the EPS of $2.50 from the year-ago quarter.Neither did MMM stock recover in the revenue front. The underlying company reported $7.86 million in sales, down significantly from the $8.02 billion consensus target. Again pouring salt on open, festering wounds, 3M rang up $8.28 billion in Q1 2018.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWith such terrible print, the only saving grace for 3M stock would have been the forward guidance. But even here, management disappointed. They're now expecting full-year EPS to hit between $9.25 to $9.75. That's a sharp drop from the previous guidance of $10.45 to $10.90. * 7 Cloud Stocks to Buy on Overcast Days No matter how you look at it, this is a risky story. Still, if you're willing to look at the nuances, MMM stock offers some substance to the contrarian trade. Acelity Takeover a Bright Spot for MMM StockWith 3M stock falling and debt levels rising, the last thing you want to see is management spending large for acquisitions. However, that's exactly what happened a few days ago when 3M bought out Acelity for approximately $6.7 billion. For context, that's the biggest deal in the company's history.More than one analyst has questioned the viability of this move. However, I don't view it as such a bad gig. For starters, the Q1 report revealed that every division within 3M's ranks were duds, except for one: healthcare. Mind you, it wasn't great growth, but it was growth nevertheless.While I'm concerned about the spend -- who isn't? -- at least management is investing in proven winners. Acelity bolsters 3M's already strong presence in wound-care. This buyout alone could make things interesting from a sales-growth perspective.Secondly, healthcare is a diverse market. Some segments are straight-up risky, especially if we have a transition in power in 2020. Other segments, like wound-care, offer an almost-guaranteed path to profitability.For example, experts believe that the North American wound-care market will grow at a compound annual growth rate of over 7% till 2024. In addition, specific wound-care segments, such as chronic and surgical wounds, offer potentially lucrative revenue channels.Like I said, it's not a perfect situation for MMM stock. But at the very least, management is banking on industries that make sense. Asia Headwinds Are a Temporary Problem for 3M StockYou can't blame any one factor for the Q1 disaster. That said, you can't ignore the giant elephant in the room: the U.S.-China standoff negatively impacted 3M's Asian-market sales.The tit-for-tat lasted for far longer than many political observers anticipated. But because the pain on both sides of the Pacific was so intense, the Trump administration appeared willing to negotiate with its Chinese counterparts.Apparently, that was wishful thinking. In a stunning plot twist, President Donald Trump raised tariffs on roughly $200 billion in Chinese goods from 10% to 25%.Still, with a critical election coming up in 2020, Trump must do everything possible to grow the economy. Therefore, look for a substantive deal with the Chinese eventually, which will benefit 3M stock longer-term. 3M Stock has Relevant ProductsI'll never forget a conversation I had with my friend, who formerly worked in the extermination business. In the era of smartphones and GPS navigation, I questioned why he continued to buy Thomas Guide maps.He answered a question with a question: what happens if your smartphone battery suddenly dies or your car conks out? Do you tick off your clients while scrambling for an excuse? In this case, my friend had a back-up plan ready to go.And that's really one of the ironies of this digital age. As we dive further into the Internet of Things, "analog" products become even more relevant, not less. That's because we can't forget a core tenet of technology: it fails, and usually at the worst time possible.You might laugh at archaic innovations like Post-it Notes. But after all these years, I've never worked in a business that didn't have them. And no computer is worth more than a piece of sticky paper if that computer doesn't work. That's why even if it's risky, MMM stock is worthy of your consideration.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Cloud Stocks to Buy on Overcast Days * 6 Stable Stocks Worth Buying for Protection * 5 Active Vanguard Funds That You Have to Own Compare Brokers The post 3 Reasons to Take a Gamble on MMM Stock appeared first on InvestorPlace.
Director Gregory R. Page, retired Cargill CEO, bought the conglomerate’s stock earlier this week. He’s the only 3M insider to buy stock on the open market since 2013.
3M Co NYSE:MMMView full report here! Summary * Perception of the company's creditworthiness is neutral * ETFs holding this stock are seeing positive inflows but are weakening * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for MMM with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting MMM. Money flowETF/Index ownership | NegativeETF activity is negative and may be weakening. The net inflows of $4.17 billion over the last one-month into ETFs that hold MMM are among the lowest of the last year and appear to be slowing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Industrials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swap | NeutralThe current level displays a neutral indicator. MMM credit default swap spreads are near their highest levels of the last 3 years, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Trump said on Sunday he will raise tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent, ratcheting up pressure on Beijing to agree to a deal. Apple Inc cut its fiscal first quarter sales forecast, blaming slowing iPhone sales in China where uncertainty around U.S.-China trade relations has hurt the economy. Late last month after Apple slashed prices, sales picked up and Apple cited the improved tone of the trade war for a stronger outlook.
Shares of 3M Co. slumped 1.9% in afternoon trade, putting them on track to close at a 4 1/2-month low, as investors expressed concerns over an escalating U.S.-China trade dispute. The stock has now tumbled 17% since the consumer, industrial and health-care products company reported disappointing first-quarter results, highlighted by the 13% plunge the day the results were released. The company, which brands include Post-it notes and Scotch tape, had said on its post-earnings call with analysts that results were negatively impacted throughout the quarter by soft end-market trends in China. The stock has lost 4.7% year to date, while the Dow Jones Industrial Average has gained 12.8%.
Moody's Investors Service ("Moody's") placed Acelity L.P. Inc.'s ("Acelity") ratings on review for upgrade following an announcement by 3M Company (A1 stable) to acquire to acquire Acelity Inc. and its KCI subsidiaries worldwide. The affected ratings include Acelity's Corporate Family Rating, Probability of Default Rating, senior secured first lien debt ratings and the rating of senior secured third lien notes.
This latest move fortifies 3M's existing wound care business, but will it be enough to help the company heal?
The stock market tends to overreact to both news and trends. Up until 2016, the market assumed that General Electric's (NYSE:GE) modestly improving operating results would continue, ignoring mounting problems under the hood. In late 2018, the market went too far in the other direction.Source: Shutterstock After GE stock tumbled from $30 to as low as $6.66, the pendulum swung too far the other way. This set up a huge buying opportunity, with some astute knife-catchers netting quick 50% gains from General Electric. At this point, however, I have to start to wonder if sentiment is getting a little bit too bullish again. All in all, $10 seems like a reasonable price for GE stock, but don't expect more huge upside moves from General Electric anytime soon. * 10 Cheap Stocks to Buy in May, But Don't Go Away Tusa Rains on the ParadeStephen Tusa has been GE stock owners' worst nightmare over the past few years. The J.P. Morgan analyst famously went negative on GE stock in May 2016, when it was trading for around $30 per share. Over the years, he's kept making prophetic warnings about the state of General Electric's business.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGiven how rare it is for analysts to take a strongly negative position on a stock and stick with it, Tusa has earned a reputation as a credible analyst. He recently further enhanced his standing with his prescient bearish call on 3M (NYSE:MMM) stock. 3M tumbled more than 10% - its worst one-day plunge in more than a decade - following its miserable earnings report in April. Tusa saw it coming.In any case, Tusa upgraded General Electric from his long-standing "sell" rating up to "neutral" in December. That closely coincided with GE stock's famous $6.66 bottom. While Tusa still had a lot of questions for General Electric, he thought GE could turn itself around, and GE stock consequently rallied.In April, however, Tusa warned that the turnaround was not going according to plan. Not only did he drop General Electric stock back to "underweight," but he actually trimmed his price target on GE stock from $6 to $5 per share.He wrote: "We believe many investors are underestimating the severity of the challenges and underlying risks at GE while overestimating the value of small positives." And Tusa makes some fair points. In particular, even most General Electric bulls will admit that the company's 2019 is shaping up to be underwhelming. GE Stock Will Only Drop to $5 If This HappensA key point in Tusa's bearish thesis is that GE stock can get pulverized if another recession hits before the company can clean up its balance sheet. Tusa accurately warns that the company's debt load is persistently high, while its cash flow generation remains weak. Given General Electric's considerable leverage to the economy, a recession could deliver a killer blow to GE at this point.But the owners of GE stock should relax. The U.S. probably won't enter a recession for at least a year. Despite all the fretting and panicking that occurred in late 2018, the economy held firm and is now looking up. The recently released GDP results came in above 3%, easily surpassing analysts' consensus outlook.Meanwhile, consumer figures look reasonably strong as well. Sure, there are some relatively weak spots, like autos and housing. On the whole, however, the economy is robust. Additionally, there's still a ton of stimulus in the system from Trump's tax cuts. Throw in the news this week that there appears to be bipartisan support for two trillion dollars of new infrastructure funding, and General Electric should find plenty of fresh contracts and opportunities to pursue.Tusa's point, however, is correct in isolation. The clock is ticking quickly for GE. General Electric needs to clean up its business, pay down its debt, and get its cash flow to more reliable levels. If a recession arrives in the back half of 2019, that would be awful news for General Electric. But that's not a likely scenario. General Electric Is Making ProgressIt's important to remember when considering Tusa's bearish view that General Electric is getting stuff done. In particular, it sold its biopharma operations to Danahar (NYSE:DHR) for a cool $21.4 billion. Another meaningful move was the merger of its transportation business. It also sold a portion of its lighting business to private equity firms earlier this year, and GE is working on other deals.There have been advances in other areas as well. Other analysts have pointed to decreasing uncertainty about the company's insurance liabilities. Furthermore, the rising stock market should have a favorable impact on GE's pension funding issues. The Verdict on GE StockGeneral Electric didn't collapse in a day. It cratered during the financial crisis due to aggressive credit deals. Even then, it bounced back enough to hide the rot of its core industrial businesses for another decade. With an organization as huge as GE, things don't break all at once.Similarly, General Electric can't be completely fixed in a day, either. CEO Larry Culp has been on the job barely six months. He's already accomplished a lot during his tenure. Bears such as Tusa are right to say that much more needs to be done.But it seems harsh to be cutting the stock's price target at this point, especially since economic conditions remain favorable. That said, bulls may become overly exuberant. General Electric still has to make a lot of progress before it can become a steady blu- chip stock again. At $10, GE stock is fairly priced and balances General Electric's risks and rewards equally.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best Stocks to Buy for May * 7 Stocks Worth Buying When They're Down * 7 of the Best ETFs to Buy for a Slowing Economy Compare Brokers The post $10 Is a Fair Price for General Electric Stock appeared first on InvestorPlace.
The purchase, from a group of funds advised by Apax Partners, adds bandages and surgical-wound care products to one of 3M’s most profitable businesses. The company valued the transaction at $6.73 billion including Acelity’s debt, according to a regulatory filing Thursday that provided details on the deal valuation. “Health care for us has been a strong growth marketplace and portfolio, so we’ve been investing in a broader range of technologies,” Roman said on a conference call with investors.
Local bioscience industry leaders have plenty riding on how the Minnesota company's planned purchase plays out.
The maker of Post-it notes announced on Thursday that it would acquire wound-care company Acelity Inc. for $6.7 billion including debt. While the company has historically grown through innovation, as opposed to massive deals, there’s been a debate lately about whether 3M’s spending on research and development is delivering the returns that it once did. The Acelity purchase suggests 3M has run out of better ideas as weak demand for automotive and electronics products and challenges in Asia weigh on 3M’s growth prospects.
3M Co. said Thursday it has agreed to acquire Acelity Inc., a maker of wound dressings and other products to stop bleeding. The deal values San Antonio, Texas-based Acelity at $6.7 billion, including the assumption of debt.
3M said it has agreed to acquire Acelity and its KCI subsidiaries worldwide from a private equity consortium — Apax Partners, the controlled affiliates of the Canadian Pension Plan Investment Board and the Public Sector Pension Investment Board — for about $6.7 billion, including the assumption of debt. Acelity manufactures advanced wound care and specialty surgical applications that are marketed under the KCI brand. 3M expects the deal to be dilutive to its GAAP EPS by 35 cents in the first 12 months following the completion of the transaction, including the transaction costs.
The maker of Post-it notes and Scotch tape is buying the company and some of its units from a consortium of funds advised by Apax Partners, affiliates of Canada Pension Plan Investment Board and the Public Sector Pension Investment Board. Acelity, under its KCI brand, makes advanced wound dressings and specialized systems that use a vacuum to seal off acute or chronic wounds, promoting faster healing. The company reported revenue of $1.5 billion in 2018, nearly 80 percent of which came from sales of such specialized systems that provide "negative pressure wound therapy".
Markets rebounding on reports that President Trump will be delaying decision on auto tariffs up to six months. Haverford Trust Co-Chief of Investment Hank Smith says Trump is a slave to the stock market. He joins Yahoo Finance's Seana Smith.