Archives for January 19, 2020

3M Co (NYSE:MMM) Shares Purchased by Commerzbank Aktiengesellschaft FI

Commerzbank Aktiengesellschaft FI raised its stake in shares of 3M Co (NYSE:MMM) by 9.0% in the 4th quarter, according to its most recent Form 13F filing with the SEC. The fund owned 666,361 shares of the conglomerate’s stock after purchasing an additional 54,824 shares during the period. 3M accounts for 1.2% of Commerzbank Aktiengesellschaft FI’s portfolio, making the stock its 14th largest position. Commerzbank Aktiengesellschaft FI owned about 0.12% of 3M worth $117,559,000 as of its most recent filing with the SEC.

Other hedge funds also recently modified their holdings of the company. Private Vista LLC boosted its stake in shares of 3M by 5.1% in the third quarter. Private Vista LLC now owns 1,227 shares of the conglomerate’s stock valued at $202,000 after purchasing an additional 60 shares during the period. Boston Advisors LLC raised its holdings in shares of 3M by 0.7% during the third quarter. Boston Advisors LLC now owns 9,250 shares of the conglomerate’s stock worth $1,521,000 after purchasing an additional 60 shares during the period. West Coast Financial LLC raised its holdings in shares of 3M by 0.3% during the third quarter. West Coast Financial LLC now owns 19,416 shares of the conglomerate’s stock worth $3,192,000 after purchasing an additional 64 shares during the period. KLCM Advisors Inc. raised its holdings in shares of 3M by 3.1% during the third quarter. KLCM Advisors Inc. now owns 2,145 shares of the conglomerate’s stock worth $353,000 after purchasing an additional 64 shares during the period. Finally, Advisors Management Group Inc. ADV raised its holdings in shares of 3M by 2.4% during the second quarter. Advisors Management Group Inc. ADV now owns 2,776 shares of the conglomerate’s stock worth $481,000 after purchasing an additional 65 shares during the period. 66.53% of the stock is owned by hedge funds and other institutional investors.

MMM has been the topic of a number of analyst reports. UBS Group cut shares of 3M from a “neutral” rating to a “sell” rating and dropped their price objective for the stock from $180.00 to $160.00 in a report on Thursday, December 12th. Royal Bank of Canada dropped their price objective on shares of 3M from $165.00 to $165.00 and set an “equal weight” rating on the stock in a report on Friday, October 25th. Deutsche Bank increased their price objective on shares of 3M from $160.00 to $176.00 and gave the stock a “hold” rating in a report on Wednesday, December 4th. Morgan Stanley dropped their price objective on shares of 3M from $177.00 to $173.00 and set an “equal weight” rating on the stock in a report on Friday, September 27th. Finally, Wolfe Research raised shares of 3M from an “underperform” rating to a “peer perform” rating in a report on Thursday, January 9th. Three research analysts have rated the stock with a sell rating, nine have given a hold rating and one has assigned a buy rating to the company. 3M presently has an average rating of “Hold” and a consensus target price of $174.08.

MMM stock opened at $181.35 on Friday. The company has a quick ratio of 1.79, a current ratio of 2.30 and a debt-to-equity ratio of 1.68. 3M Co has a fifty-two week low of $150.58 and a fifty-two week high of $219.75. The firm’s 50-day simple moving average is $174.56 and its 200 day simple moving average is $168.55. The stock has a market cap of $104.29 billion, a PE ratio of 17.34, a price-to-earnings-growth ratio of 1.99 and a beta of 1.10.

3M (NYSE:MMM) last released its quarterly earnings data on Thursday, October 24th. The conglomerate reported $2.58 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.49 by $0.09. 3M had a net margin of 15.48% and a return on equity of 54.02%. The business had revenue of $7.99 billion for the quarter, compared to analysts’ expectations of $8.20 billion. During the same quarter last year, the company earned $2.58 EPS. The company’s revenue for the quarter was down 2.0% compared to the same quarter last year. Equities analysts forecast that 3M Co will post 9.04 EPS for the current fiscal year.

In related news, EVP Julie L. Bushman sold 6,879 shares of the stock in a transaction dated Monday, December 2nd. The shares were sold at an average price of $165.09, for a total value of $1,135,654.11. Also, SVP Ty R. Silberhorn sold 1,634 shares of the stock in a transaction dated Wednesday, November 13th. The shares were sold at an average price of $170.72, for a total transaction of $278,956.48. The disclosure for this sale can be found here. Insiders sold a total of 13,216 shares of company stock valued at $2,233,940 in the last quarter. 0.83% of the stock is currently owned by insiders.

3M Profile

3M Company operates as a technology company worldwide. The company’s Industrial segment offers tapes, abrasives, adhesives, ceramics, sealants, specialty materials, purification products, closure systems, acoustic systems products, automotive components, abrasion-resistant films, and paint finishing and detailing products.

Jumbo resort dead

Jumbo Glacier turned over to Ktunaxa First Nation

A spectacular swath of mountains, glaciers and forests once proposed for a ski resort is being turned over to First Nations.

After decades of controversy that reached all the way to the Supreme Court, the Jumbo Glacier in British Columbia’s central Purcell Mountains is to be handed over to the Ktunaxa First Nation to manage as an Indigenous Protected Area.

“It’s an opportunity to do so many things,” said Kathryn Teneese, chairwoman of the Ktunaxa Nation Council.

The land will be accompanied by $21 million to design and plan the new conservation zone. About $16 million is to come from Ottawa and the rest from private foundations.

The company that held the development permits, Glacier Resorts, received an undisclosed payout — at least partly from federal funds — in exchange for relinquishing its interests. The deal was negotiated with the help of the Nature Conservancy of Canada.

Glacier Resorts did not respond to a request for comment.

Saturday’s signing ceremony in Cranbrook is to end a controversy that has bubbled since 1991, when a Japanese company made the first proposal for a resort on Jumbo. The spectacular terrain tantalized run planners and its high elevation held the promise of year-round skiing.

Vancouver-based Glacier Resorts took over the proposal, which planned 5,500 guest beds at a 110-hectare resort base. Proponents expected up to 3,000 visitors a day in high season.

The idea ran into opposition from the Ktunaxa, local people and environmentalists.

A 2009 study found the Jumbo area was prime grizzly bear habitat. Lead author Michael Proctor estimated that 600 grizzlies lived in the region — a crucial anchor population in habitat uncut by roads or development.

“(The resort) was going to break up that,” said Proctor. “It was going to be another fracture.”

As well, the Ktunaxa consider Jumbo to be home to the grizzly bear spirit, an important part of their spiritual practice. In 2017, the First Nation argued before the Supreme Court that allowing the resort to go ahead would inhibit their freedom of religion, but they lost.

Final boundaries for the protected area have yet to be negotiated, but it is to cover at least 600 square kilometres — large enough to connect with other bear habitats.

Way cleared for royal move

Royal deal clears way for Harry, Meghan to move to Canada

A deal reached by Prince Harry and his wife, Meghan, with Buckingham Palace helps clear the way for their planned part-time move to Canada, royal watchers said Saturday.

The palace announced that the duo will cease their duties as working royals this spring and will no longer use the titles “royal highness” or receive public funds for their work.

Keith Roy of the Monarchist League of Canada said the deal is exactly what Harry and Meghan asked for and green lights their plan to lead more private lives and split their time between Canada and the United Kingdom.

“It looks like they’re moving as expeditiously as possible in a way that’s respectful of taxpayers’ money, public sentiment and the Duke and Duchess’s desires to pursue an independent life,” he said.

Roy said he doesn’t expect the deal to impact the public cost of their security during their part-time residence in Canada.

“If you as a citizen or resident of Canada were being hounded and pursued by other members of the public or the press, I think you would expect that our government would provide you security so you could live as peaceful a life as possible,” he said.

He added that he does expect some of their security will be privately funded.

But royal historian Carolyn Harris said the deal might affect how their security is paid for. She noted that Harry’s cousins, Princess Eugenie and Princess Beatrice, also hold reduced royal roles.

“Beatrice and Eugenie originally had British state-funded security and that attracted a lot of criticism in the British press when they were travelling with security officers. Now their father, the Duke of York, privately pays for their security,” Harris said.

The royal statement said Buckingham Palace does not comment on the details of security arrangements and there are well-established independent processes to determine the need for publicly funded security.

Harris said it’s unlikely the details have been hammered out because it remains to be seen how much time the pair will spend in the United Kingdom, Canada and potentially the United States.

She pointed out the statement says Frogmore Cottage will remain Harry and Meghan’s family home in the United Kingdom, suggesting the couple isn’t contemplating a full-time move to Canada.

Since the Duke and Duchess of Sussex announced they wanted to spend more time in North America, and the Queen confirmed Canada as their destination, speculation has run rampant that they will buy a home in British Columbia. Harry and Meghan vacationed on Vancouver Island over Christmas and Meghan recently visited a women’s charity in Vancouver’s Downtown Eastside.

New issue on 737 Max

Boeing working on new software issue on grounded 737 Max

Boeing is working to fix a newly discovered problem with software powering up on the 737 Max, adding to the list of tasks the aircraft maker faces to get the grounded plane back in the air.

Boeing said Friday it has told the Federal Aviation Administration about the issue.

“We are making necessary updates and working with the FAA on submission of this change, and keeping our customers and suppliers informed,” Boeing said in a statement. “Our highest priority is ensuring the 737 MAX is safe and meets all regulatory requirements before it returns to service.”

A person with knowledge of the situation said the issue concerns software that verifies whether monitors tracking key systems on the plane are working properly.

The monitor check is supposed to happen automatically when the plane or system is powered up, but during a recent review, one of the monitors didn’t start up correctly, said the person, who spoke on condition of anonymity to discuss a detail that was not announced publicly.

The issue was discovered during a technical review that normally happens near the end of the software-development process, a sign that Boeing could be close to finishing changes designed to get the plane back in the air.

Boeing is rewriting software that played a role in crashes five months apart in Indonesia and Ethiopia that killed 346 people and led regulators to ground the plane worldwide in March 2019.

Boeing still must finish the software package, conduct one or more demonstration flights with FAA experts on board, and bring in airline pilots to test the changes it is making.

Separately on Friday, Fitch Ratings downgraded Boeing’s debt rating. It cited uncertainty about when the Max will fly again, the challenge of catching up on deliveries that were halted last April, rising debt, and risks posed by fines, lawsuits and a damaged reputation.

Boeing Co. shares fell $7.85, or 2.4%, to close at $324.15.

Moody’s Investors Service, which cut Boeing ratings on Dec. 18, signalled this week that another downgrade is possible because of a likely long and costly fight to regain confidence even if the Max returns to service relatively soon.

Best Buy reviews allegations

Best Buy says it is reviewing allegations made against CEO

Best Buy said it is investigating CEO Corie Barry after receiving an anonymous letter making allegations against her.

Best Buy declined to reveal the allegations but The Wall Street Journal, which first reported on the probe Friday, said it had seen the letter, which accused Barry of having an inappropriate romantic relationship with another executive.

The letter claims that Barry had the relationship with former Best Buy Senior Vice-President Karl Sanft before she took over as CEO last June, the Journal said.

“Best Buy takes allegations of misconduct very seriously,” the company said in a statement to The Associated Press.

Best Buy, based in Richfield, Minnesota, said it hired an outside law firm to investigate the allegations.

“We will not comment further until the review is concluded,” the electronics chain said.

Many U.S. companies have adopted policies to address workplace romances, even before the #MeToo movement stirred a national conversation surrounding sexual misconduct. Fast-food chain McDonald’s fired its CEO in November for violating company policy when he had a consensual relationship with an employee.

Barry, who became CEO of Best Buy Co. six months ago, replaced Hubert Joly after he stepped down and took on the role of executive chairman. Barry, 44, has worked at the company since 1999, most recently as chief financial officer. She is Best Buy’s first female CEO in its 53-year history.