3M Stock Pops on Potential $5.5 Billion Settlement

The Dow member is hoping to avert larger liability

Deputy Editor
Aug 28, 2023 at 9:37 AM
facebook X logo linkedin

The shares of Dow member 3M Co (NYSE:MMM) are up 5.7% at $104.58 at last check, following news the industrial giant will settle more than 300,000 lawsuits pertaining to its earplugs. The company allegedly sold defective combat earplugs to the U.S. military, and the tentative settlement will amount to over $5.5 billion.

Today's pop is likely due to the fact that the settlement skirts the possibility of even larger liability. MMM cleared the $102 level as well as its 50-day moving average, both of which have enacted pressured since mid-August. Over the last 12 months, 3M stock is down more than 23%.

Coming into today, analysts were firmly bearish toward the security, with all but one of 14 in coverage carrying a tepid "hold" or worse rating. Conversely, options traders are optimistic, per MMM's 50-day call/put volume ratio of 1.96 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that ranks higher than 99% of readings from the past year.

Those looking to weigh on 3M stock's next moves should consider options. The security's Schaeffer's Volatility Index (SVI) of 21% sits higher than just 9% of readings from the past 12 months. This implies these traders are pricing in low volatility expectations. 



How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.