3M Sales | Will Chief Legal Officer Drop $700k MMM Stock? | Media Pyro

Kevin Rhodes, chief legal officer of 3M (MMM), raised $720,840 by acquiring 5,703 shares of the company, according to documents filed with the US Securities and Exchange Commission (SEC).

The move comes as 3M’s stock price has plummeted over the past year as a subsidiary battles a military lawsuit over the headphones.

3M (MMM) live price chart

But what does this mean for 3M shareholders? Here we look at what happened, examine the company’s prospects, and find out what analysts think.

What is 3M?

3M is a multinational corporation whose interests include safety, industrial, transportation, electronics, health care and consumer products. The company was launched in 1902 and was originally called Minnesota Mining and Manufacturing. More than 600,000 products are manufactured.

The company’s shares were listed on the New York Stock Exchange (NYSE) on January 14, 1946 under the ticker symbol MMM. In addition to New York, it is traded on the Chicago and Swiss stock exchanges.

In addition, 3M is one of the 30 companies listed in the Dow Jones Industrial Average (US30), having become a member on August 9, 1976.

Stock price analysis

This has been a tough year for shareholders. 3M’s share price has fallen 30% from $177.74 at the start of 2022 to $124.84 when the market closed on November 4. The past three months have been turbulent, with 3M’s share price dropping 29.4% from $152.24 on August 12th to $107.52 on October 7th.

However, it rallied 17.7% to $126.60 on October 28, before resuming its steep decline over the past two weeks.

The all-time high for 3M stock was $220.83li achieved on January 26, 2018. The average price for the last 52 weeks was $146.90.

Selling indoor furniture

Kevin Rhodes, 3M’s vice president and chief legal officer, sold 5,703 shares at $126. Rhodes, who has been with the company for 20 years, manages legal, compliance, government affairs and international security matters. A registered patent attorney, he has served as president of the leading intellectual property association and association of corporate patent attorneys.

He has said that leadership begins by presenting a vision that inspires others to work together with “heart and energy” to achieve shared goals, saying:

“The best leaders serve their teams with integrity, support, empathy and inclusion, and are committed to empowering all colleagues to lead and contribute to the success of the organization. group.”

So, are indoor stock sales bad news? It is not. While shareholders like to see insiders holding or selling stock because it shows confidence in future plans, selling is not necessarily bad news.

For example, canceling some of the shares will only give the management some money, without being considered bad or good.

New credits

3M reported sales of $8.6 billion for the third quarter of 2022, which was down 4% year-over-year (YOY).

Operating cash flow fell 18% YOY to $1.5bn, while organic sales achieved growth of 2%.

3M returned $1 billion to shareholders in dividends and capital buybacks. Adjusted earnings per share came in at $2.69, excluding the impact of special items, while GAAP earnings per share were $6.77.

In a statement, Mike Roman, chairman and CEO, said the company is executing its strategy in an “extremely uncertain” environment:

“We are committed to 3M’s future through investments in growth, profitability and sustainability, and strong financial management.”

Roman also announced the liquidation of his food safety business and said he had begun a “streamlining” process to effectively transform his health care business.

Judicial reform

One of the news stories about 3M is related to the lawsuit being fought by Aearo Technologies, one of its subsidiaries.

The company, which was acquired by 3M in 2008, began Chapter 11 proceedings after being sued for allegedly making wartime headphones. In the Q3 2022 earnings call, 3M’s Mike Roman said Chapter 11 is going strong and moving forward, saying:

“We believe this is the best way to resolve claims fairly, efficiently, quickly, and permanently. That is always our goal: a decision that is fair and well-informed for all parties.

Roman also indicated that Aearo is participating in a confidential mediation process aimed at achieving a comprehensive settlement and confirmed that 3M supports those efforts. In early November, it was reported that Judge Casey Rodgers, who is presiding over the consolidated pre-trial hearings, had ordered settlement talks to resume.

Analysts’ comments

Joshua Aguilar, senior analyst i The morning stara fair value of $183 a share, as of October 25, 2022. In a note, he said the most recent quarter’s strong performance on the top line came from in the engineering sector:

“The Director mentioned the growth of the carbon sales of small youth in the automotive markets, although by our calculations, the foreign exchange winds reduced this contribution to 8% good sales growth from every year.”

Aguilar said it showed “early signs of a return on digital investments” such as RepairStack for connected auto shops and heat barriers in the electronics industry. “RepairStack helps automate many tasks in an auto body shop, such as inventory management and billing,” he added. “We’re also interested in real-time performance analysis, which may be better for larger customer engagements, because of the upfront cost.”

On the negative side, Aguilar showed how personal safety, vehicle safety, and oral care can affect two-way sales based on information. More broadly, he acknowledged that signs of recession “from this industrial bellwether” are beginning to flow:

“We like to use 3M as a brand because it’s a short cycle business. Oral care, for example, sustained a decline in mid-year organic sales from a difficult comparison, due to the pressure of inflation related to manufacturing processes.

What will happen to the stock price?

As of November 7, the stock has a ‘hold’ rating, based on the ratings of 13 analysts compiled by MarketBeat. Three of them saw it as a ‘buy’, while the rest called it a ‘hold’. They think that the price of 3M can increase to $ 132.93 – 6.48% on the level of $ 124.84 at the close of the market on November 4. The highest estimate is $190 and the lowest is $110.

3M stock has a ‘moderate buy’ rating, according to opinions of 13 analysts compiled by Award Award, marked a stock price of $124.69, representing a 0.12% downtrend. The highest estimate was $140 and the lowest was $110.

Algorithmic Prediction of Pocket Pocket A MMM project may be a “long-term (one year) bad investment”. It is predicted that it may fall 47.5% to $65.49 in the coming year. Its two-year forecast to November 2024 suggests 3M shares will fall to $5.29.

Remember that analysts’ forecasts are always wrong. Do not use forecasts as a substitute for your own research. Always conduct yourself before trading. And never invest or trade money that you cannot afford to lose.

FAQ

Read about it

Rate this article

Rate this article

Information

There are currently no responses to this comment.
You are the first to answer.