Share Repurchase Program Declared by 3M (NYSE:MMM)

3M (NYSE:MMM) declared that its Board of Directors has initiated a stock buyback plan on Wednesday, November 4th, RTT News reports. The company plans to buy back $6 billion in outstanding shares. This repurchase authorization allows the conglomerate to reacquire up to 6.6% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s management believes its stock is undervalued.

3M Stock Down 1.4%

Shares of NYSE:MMM opened at $185.23 on Friday. The firm has a market capitalization of $95.71 billion, a PE ratio of 20.11, a price-to-earnings-growth ratio of 2.32 and a beta of 1.01. The business has a 50 day simple moving average of $168.96 and a two-hundred day simple moving average of $161.79. 3M has a 1 year low of $139.34 and a 1 year high of $196.90. The company has a debt-to-equity ratio of 3.01, a current ratio of 1.41 and a quick ratio of 1.06.

3M (NYSE:MMM) last posted its quarterly earnings results on Tuesday, October 20th. The conglomerate reported $2.50 EPS for the quarter, topping the consensus estimate of $2.38 by $0.12. The company had revenue of $6.60 billion for the quarter, compared to the consensus estimate of $6.61 billion. 3M had a net margin of 14.01% and a return on equity of 123.11%. The firm’s revenue was up 1.5% compared to the same quarter last year. During the same quarter last year, the firm posted $2.19 EPS. On average, equities analysts predict that 3M will post 9.14 EPS for the current year.

3M Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 11th. Stockholders of record on Friday, November 13th will be given a $0.78 dividend. This represents a $3.12 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend is Friday, November 13th. 3M’s payout ratio is presently 46.50%.

Analysts Set New Price Targets

MMM has been the subject of a number of recent research reports. UBS Group set a $230.00 price objective on 3M in a report on Wednesday. Argus began coverage on shares of 3M in a research note on Wednesday. They issued a “strong-buy” rating for the company. Citigroup boosted their target price on 3M from $183.00 to $188.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 21st. Raymond James Financial reiterated a “market perform” rating on shares of 3M in a report on Wednesday, October 21st. Finally, The Goldman Sachs Group lifted their target price on shares of 3M from $200.00 to $225.00 and gave the company a “buy” rating in a research note on Thursday. Two analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $190.07.

About 3M

3M is a diversified science and manufacturing company that develops products for businesses and consumers. Its offerings include workplace safety equipment, adhesives and abrasives, filtration materials, automotive and electronics components, and home and office products such as Post-it Notes and Scotch brand tapes.

Founded in 1902 as the Minnesota Mining and Manufacturing Company, 3M began as a mining venture before expanding into materials science and industrial manufacturing. The company adopted the name 3M in 2002 and is headquartered in St.