3M Announces Change in Top Leadership
3M’s leadership announcement
On June 20, 2017, Michael Romon was appointed as chief operating officer and executive vice president, while Hak Cheol Shin was appointed as vice chair and executive vice president of 3M (MMM). The new appointments will be effective beginning July 1, 2017, and will directly report to Inge Thulin, 3M’s chair of the board, president, and chief executive officer.
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Romon in his new role will be responsible for five business groups and the company’s international operations. Inge Thulin said, “Mike and H.C. are both highly effective, accomplished leaders with proven track records of delivering strong results, building businesses and developing future leaders.”
3M’s stock performance
3M had a relatively flat week with a fall of 0.2% for the week ended June 23, 2017, with a close of $212.90. Though 3M stock remained flat, it still traded 10.4% above the 100-day moving average price of $192.85, indicating that the stock is on an upward trend. On a year-to-date basis, 3M has returned 20.7%. MMM’s RSI (or relative strength index) of 78 indicates that the stock is temporarily in the overbought zone. An RSI of 70 and above indicates the stock is overbought while an RSI of 30 and below indicates that the stock is oversold.
Investors can indirectly hold 3M by investing in the SPDR Dow Jones Industrial Average ETF (DIA), which invests 6.8% of its portfolio in 3M. DIA outperformed MMM with a gain of 0.1% for the week. The top holdings of the fund include Goldman Sachs (GS), Boeing Company (BA), and UnitedHealth Group (UNH) with weights of 7.0%, 6.4%, and 5.9%, respectively.