Major Purchase Alert: Suzan Kereere Invests $195K In 3M Stock

A new SEC filing reveals that Suzan Kereere, Director at 3M MMM, made a notable insider purchase on May 14,.

What Happened: Kereere demonstrated confidence in 3M by purchasing 1,297 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the transaction is $195,000.

3M's shares are actively trading at $145.02, experiencing a down of 1.93% during Thursday's morning session.

Get to Know 3M Better

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.

3M: Delving into Financials

Decline in Revenue: Over the 3 months period, 3M faced challenges, resulting in a decline of approximately -1.03% in revenue growth as of 31 March, 2025. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Profitability Metrics:

• Gross Margin: With a high gross margin of 41.59%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): 3M's EPS is below the industry average. The company faced challenges with a current EPS of 2.05. This suggests a potential decline in earnings.

Debt Management: 3M's debt-to-equity ratio surpasses industry norms, standing at 3.15. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Evaluating Valuation:

• 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.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 3.32, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 11.39, 3M presents an attractive value opportunity.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Exploring the Significance of Insider Trading

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Important Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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.