It was revealed in a recent SEC filing that James R Fitterling, Board Member at 3M MMM made a noteworthy insider purchase on May 14,.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Fitterling purchased 1,297 shares of 3M. The total transaction amounted to $195,000.
In the Thursday’s morning session, 3M‘s shares are currently trading at $145.02, experiencing a down of 1.93%.
Unveiling the Story Behind 3M
3M, a multinational conglomerate founded in 1902, sells tens of thousands of products ranging from sponges to respirators. The firm is well known for its extensive research and development capabilities, and it is a pioneer in inventing new use cases for its proprietary technologies. 3M is organized across three business segments: safety and industrial (representing around 44% of revenue), transportation and electronics (36%), and consumer (20%). The firm recently spun off its healthcare business, now known as Solventum. Nearly half of 3M’s revenue comes from outside the Americas.
Breaking Down 3M’s Financial Performance
Revenue Growth: 3M’s revenue growth over a period of 3 months has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -1.03%. This indicates a decrease in the company’s top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.
Exploring Profitability:
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Gross Margin: Achieving a high gross margin of 41.59%, the company performs well in terms of cost management and profitability within its sector.
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Earnings per Share (EPS): 3M’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 2.05.
Debt Management: With a high debt-to-equity ratio of 3.15, 3M faces challenges in effectively managing its debt levels, indicating potential financial strain.
Analyzing Market Valuation:
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Price to Earnings (P/E) Ratio: 3M’s P/E ratio of 18.42 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: The Price to Sales ratio is 3.32, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio 11.39 is below the industry average, indicating that it may be relatively undervalued compared to peers.
Market Capitalization Analysis: Reflecting a smaller scale, the company’s market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
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Uncovering the Importance of Insider Activity
While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.
Exploring the legal landscape, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider’s new purchase, there’s a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
A Deep Dive into Insider Transaction Codes
Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of 3M’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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