3M to sponsor PGA Tour
On June 18, 3M (MMM) announced that it’s an official sponsorer of the PGA. As a result, a PGA Tour event will be held in the Twin Cities in 2019. The seven-year deal by 3M’s nonprofit open fund will bring the top golfers to the Twin Cities. Minnesota will host the PGA Tour for the first time since 2009.
The dates for the 3M Open will be announced on the PGA Tour’s 2018–2019 schedule. The sponsorship gives 3M an immense opportunity to raise funds to help build new operating rooms, improve emergency rooms, and advance cancer and heart research in the Twin Cities.
Paul Keel, 3M’s senior vice president of business development and marketing sales, said, “3M is honored to welcome the top players on the PGA TOUR to the Twin Cities, and we look forward to the many opportunities this tournament will bring to support our community. We’ve formed a great relationship with PGA TOUR Champions over the last 25 years and are excited to build on that partnership with the 3M Open.”
3M’s stock performance
3M stock fell 4.1% and closed at $196.5 for the week ending June 22. 3M continued to trade below its 100-day moving average price. As of June 22, 3M traded 9.2% below its 100-day moving average price of $216.32, which indicates a downward trend in the stock. On a YTD (year-to-date) basis, 3M has fallen 16.5%.
General Electric (GE), Honeywell (HON), and Stanley Black & Decker (SWK) have fallen ~25.2%, 6.1%, and 20.4%, respectively. Analysts maintained the target price of $213.00, which implies a return potential of 8.4% over its closing price on June 22. While the stock is on a declining trend, 3M’s 14-day relative strength index of 38 indicates that the stock isn’t overbought nor oversold.
Investors could hold 3M indirectly by investing in the SPDR Dow Jones Industrial Average ETF (DIA), which has invested 5.5% of its portfolio in 3M as of June 22.