3M Co (NYSE: MMM) Stock Overview – All You Need to Know About 3M Co

3M Co (NYSE: MMM) is also known as the Minnesota Mining and Manufacturing company headquartered in St. Paul, Minnesota, USA, hence the name 3M. 

In 1902, five businessmen, Henry S. Bryan, John Dwan, William A. McGonagle, Irwin Cox, and Dr J. Danley Budd, began a mining venture searching for Corundum, an essential mineral in creating sandpaper and grinding wheels ^[1].

Although they found the inferior Anorthosite mineral and that mine failed, 3M Co, diversified into other business operations that are the driving cogs of its success. Today, the company has interests in four main segments. 

Let’s explore them below:

Safety and Industrial 

Under this segment, 3M delivers workplace safety products, including personal protective equipment (PPEs), filtration systems, industrial adhesives, and tapes. These products are critical in various industries like aerospace, automotive, oil, and gas.

Transportation and Electronics 

Under this segment, 3M develops products such as adhesives and sealants, acoustic solutions, and advanced materials for electronic devices. 

Healthcare 

Under healthcare, 3M offers a variety of products and services that help improve patient outcomes, including medical tapes, dressings, and surgical drapes. It also offers infection prevention solutions, oral care products, and health information systems.

Consumer 

Under the consumer segment, 3M offers various products designed to improve the lives of individuals and families. That includes scotch tape, post-it notes, and Nexcare bandages. The Post-it Note is one of 3M’s most popular brands among the thousands of product patents introduced in 1980.

The company accidentally developed the Post-it Note when a 3M scientist tried to create a strong adhesive but ended up with a weak one instead.

Besides 3M Co’s core business segments, it has an impressive track record of innovation and development of several groundbreaking technologies. Today, 3M holds over 60,000 patents, selling its products in over 200 countries ^[2].

Employee Information

As of 2022, 3M Co. had approximately 92,000 employees worldwide ^[3]. The company is well known for developing its workforce by offering consistent training, promoting an innovative culture, and collaborating. 

3M Co. uses a hierarchical employee structure that includes entry-level workers, supervisors, managers, and senior executives. Base-level employees deal with daily tasks and delivery of 3M products.

Key Milestones

Here are some notable milestones achieved by 3M over the years:

• 1925: 3M introduces its first waterproof sandpaper, a major innovation for the automotive industry.
• 1942: During World War II, 3M invents a lightweight gas mask that is more effective and comfortable than existing models.
• 1951: 3M develops Scotchgard, a fabric stain repellent that has become a popular consumer product.
• 1960s: 3M expands globally, establishing operations in Europe, Asia, and Latin America.
• 1968: 3M introduces the first-ever Post-it Notes, which quickly become a ubiquitous office supply.
• 1976: 3M scientists invent the first-ever optical film, which enables brighter and clearer electronic displays.
• 1990s: 3M expands into new industries such as telecommunications and healthcare and acquires several companies to broaden its portfolio.
• 2000s: 3M continues to invest in innovation, launching products such as its Nexcare skin bandages and Scotch-Brite cleaning products made from plant-based materials.
• 2020: 3M announces its new sustainability goals, like reducing greenhouse gas emissions by 50% by 2030 and achieve 100% renewable electricity in all its facilities by 2050 ^[4].

Stock History

3M Co (MMM) went public on July 13, 1946, with 500,000 ordinary stock shares issued. Each share cost an average of $22.50, placing the company’s value at $13 million ^[5].

Since then, 3M has grown into a billion-dollar multinational conglomerate with an ever-expanding market cap. At the time of this writing, 3M’s market cap as of July 2023 is at $56.43 billion ^[6].

Stock Splits ^[7]

3M has undergone over 10 stock splits so far. Here is the chronological list:

Date	Stock Split
21 December 1920	2:1
16 December 1922	2:1
13 November 1945	2:1
8 January 1951	4:1
18 May 1956	2:1
15 May 1960	3:1
23 May 1972	2:1
22 May 1987	2:1
15 May 1994	2:1
9 September 2003	2:1

Price surges

Despite periods of high price volatility, the stock price of 3M has generally trended upwards over time. Since 3M Co went public, its stock price has steadily increased to its current price, just slightly above $100 since 11 July 2023 ^[8]. 3M stocks once hit a price high of $212.19 in early 2018 ^[9]. 

However, plenty of internal and external factors have led to price movements across the years. One critical example is during the 2008 and 2009 global financial crisis. 3M’s stock price closed at $55.55 in 2019 but rose as the markets adjusted ^[10]. It later peaked from 2010 to early 2018 before falling once more.

Dividends ^[11]

3M has consistently paid out dividends for over 100 years, with yearly increments of the earnings per share to its investors. From 2013, all investors have received an average of $1 per share. 2022 was the highest with $1.49 EPS, and 2023 seems more appealing to investors as the company started the first quarter with $1.50 EPS. 

Besides reinvesting company profits in research and development, 3M also uses excess profits to payout dividends to their current investors. Dividends attract new investors, but current investors tend to reinvest their dividends and invest long-term.

Stock trading information 

• Primary exchange: NYSE
• Ticker: MMM
• Country: U.S.
• Currency: USD
• Trading hours:
  • Main: 9.30am to 4pm ET, Mon to Fri
  • Pre-market: 4am to 9.30am
  • After-market: 4pm to 8pm

Why trade 3M?

If you’re considering a stock to trade, here are several reasons you should consider trading NYSE: MMM:

Diversification

As a large, multinational company, 3M Co operates in multiple industries, including consumer goods, health care, and industrial products. With its presence in different industries, 3M’s performance may be influenced by various factors, such as consumer spending trends, healthcare advancements, and industrial demand. This diversification can help offset potential losses in one industry with gains in another, potentially improving the overall risk-reward profile of the portfolio.

Dividend income

3M Co pays a dividend to its shareholders. The dividend amount and payout schedule vary over time, but consistent dividend payments may be attractive if you seek income-generating investments.

Growth potential

3M Co invests heavily in research and development, which helps it to stay at the forefront of innovation. Also, the company has a presence in different international markets, which provides future growth opportunities.

Potential for long-term returns:

Despite the market volatility, 3M continues to provide investors with consistent returns. For instance, the company has consistently paid dividends and has increased its dividend payout over time. Many new investors find this growth attractive for long-term growth.

Reputation 

3M Co has a strong reputation for quality and innovation, which may make it an attractive investment for investors who value these qualities in a company.

What can affect the prices of 3M stock? 

Many factors can affect the price of 3M stock. Let’s explore some below: 

Earnings

Annual and quarterly earnings are significant factors that may affect 3M’s stock price. For instance, the stock price will continue to rise when the company reports improved earnings year over year. On the other hand, a drop in earnings will affect the stock price negatively. 

Company Restructuring

After the company’s unprecedented merger with Neogen (NEOG) on September 1, 2022, it raised uncertainty for current and new investors. Many investors dislike uncertainty. Due to the negative sentiments attached to that fear, 3M’s stock price dropped.

New products

3M is a highly innovative company that regularly releases new products. Not all products have a similar reception. Investors’ sentiments may drive the stock price up or down depending on how the market receives a new product. So, a positive reception will rally the stock price up, while a hostile reception drives the price down.

Litigation

3M has over 60,000 products and patents, which may lead to delays and legal roadblocks during market entry. For instance, Aearo Tech, a 3M subsidiary, recently filed for bankruptcy after unending lawsuits over faulty earplugs. Such factors can impact the company’s stock price. 

The number of delivery/products sold

3M’s sales volume is also a critical factor driving its stock price. When the company reports higher sales, the stock price rises. Conversely, if the sales performance drops, the stock price may fall.

Economic conditions

The broader economic environment can also impact 3M’s stock price. Generally, a well-performing economy will boost sales, which will convert to a significant stock price. A weaker economy, for instance, during recessions, means lower purchasing power from consumers, which reduces the stock price. 

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References