Fintel reports that on August 31, 2023, Morgan Stanley upgraded their outlook for 3M (NYSE:MMM) from Underweight to Equal-Weight.
Analyst Price Forecast Suggests 10.94% Upside
As of August 31, 2023, the average one-year price target for 3M is 115.87. The forecasts range from a low of 96.96 to a high of $129.57. The average price target represents an increase of 10.94% from its latest reported closing price of 104.45.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for 3M is 34,318MM, an increase of 3.82%. The projected annual non-GAAP EPS is 10.57.
3M Declares $1.50 Dividend
On August 11, 2023 the company declared a regular quarterly dividend of $1.50 per share ($6.00 annualized). Shareholders of record as of August 21, 2023 will receive the payment on September 12, 2023. Previously, the company paid $1.50 per share.
At the current share price of $104.45 / share, the stock’s dividend yield is 5.74%.
Looking back five years and taking a sample every week, the average dividend yield has been 3.80%, the lowest has been 2.54%, and the highest has been 6.17%. The standard deviation of yields is 0.93 (n=235).
The current dividend yield is 2.09 standard deviations above the historical average.
Additionally, the company’s dividend payout ratio is -2.26. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company’s 3-Year dividend growth rate is 0.02%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 2670 funds or institutions reporting positions in 3M. This is a decrease of 122 owner(s) or 4.37% in the last quarter. Average portfolio weight of all funds dedicated to MMM is 0.29%, a decrease of 1.57%. Total shares owned by institutions increased in the last three months by 0.57% to 385,861K shares. The put/call ratio of MMM is 0.88, indicating a bullish outlook.
What are Other Shareholders Doing?
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 17,456K shares representing 3.16% ownership of the company. In it’s prior filing, the firm reported owning 17,267K shares, representing an increase of 1.08%. The firm decreased its portfolio allocation in MMM by 11.18% over the last quarter.
VFINX – Vanguard 500 Index Fund Investor Shares holds 13,135K shares representing 2.38% ownership of the company. In it’s prior filing, the firm reported owning 12,845K shares, representing an increase of 2.20%. The firm decreased its portfolio allocation in MMM by 11.81% over the last quarter.
Charles Schwab Investment Management holds 12,898K shares representing 2.34% ownership of the company. In it’s prior filing, the firm reported owning 12,535K shares, representing an increase of 2.82%. The firm decreased its portfolio allocation in MMM by 4.68% over the last quarter.
Geode Capital Management holds 11,846K shares representing 2.15% ownership of the company. In it’s prior filing, the firm reported owning 11,475K shares, representing an increase of 3.13%. The firm decreased its portfolio allocation in MMM by 11.07% over the last quarter.
Flossbach Von Storch holds 9,581K shares representing 1.74% ownership of the company. In it’s prior filing, the firm reported owning 9,344K shares, representing an increase of 2.47%. The firm decreased its portfolio allocation in MMM by 6.31% over the last quarter.
3M Background Information
(This description is provided by the company.)
3M Company is a diversified corporation manufacturing a wide range of products, including abrasives, adhesive tape and related products, and consumer-electronics components. It is headquartered in St. Paul, Minnesota. 3M apply science in collaborative ways to improve lives daily. With $32 billion in sales, 96,000 employees connect with customers all around the world.
This article originally appeared on Fintel
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