3M Co., Stocks Updated Key Lows
3M Co. stocks updated the 52-week low following the results of the trading session on February 17 against the background of the closing of the register of shareholders for quarterly dividends. Since the beginning of 2022, the quotes of the trading instrument have lost more than 16.4%, and over the past week they have decreased by another 6.95%, while the S&P 500 index has lost 2.75%.
Last week, the Board of Directors of 3M Co. approved dividends for Q1 2022 in the amount of 1.49 dollars with payment on March 12. The company has been showing an annual increase in dividends for the 63rd year in a row, but this year a very slight increase was recorded – only by 1%. This decision is due to a drop in the company's free cash flow in 2021 by 11% to about 6B dollars. 3M Co. is facing supply chain disruptions that have already impacted its operating results, as well as increased legal costs associated with ongoing litigation over military products. Almost 300K claims can lead to large expenses for their settlement in the future.
Support and resistance
The issuer continues to demonstrate a steady downward trend: the company's quotes have again updated key lows. At the moment, the instrument is consolidating in the range of 148.00-155.50, having a high potential for further decline. Indicators point out the strength of sellers: the price has fixed below MA (50) and MA (200), the MACD histogram is in the negative zone. Positions are to be opened from key levels.
Comparing company's multiplier with its competitors in the industry, we can say that the issuer's shares are neutral.
Support levels: 148.00, 140.00, 130.00.
Resistance levels: 155.50, 160.00, 164.50.