Peak Financial Exits $2.75 Million 3M Stake as Industrial Giant Eyes Turnaround
Key Points
Peak Financial Advisors sold 18,052 shares of 3M Company worth an estimated $2.75 million in the third quarter.
The transaction represented 1.3% of reportable 13F assets under management.
Peak Financial owned no shares of 3M after the sale. Previously, the position accounted for 1.4% of Peak's assets.
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On Thursday, Peak Financial Advisors reported selling 18,052 shares of 3M Company worth an estimated $2.75 million, fully exiting its position in the third quarter.
What Happened
According to a filing with the Securities and Exchange Commission released Wednesday, Peak Financial Advisors sold all of its 18,052 shares in 3M Company (NYSE:MMM) during the quarter. The estimated transaction value was $2.75 million, based on the quarterly average share price. The fund reported holding no shares of 3M Company as of the end of the period.
What Else to Know
Before the third-quarter sale, 3M represented about 1.4% of Peak's reported assets.
Top holdings after the third-quarter filing:
- FLXR: $24.9 million (11.9% of AUM)
- GLDM: $19.1 million (9.1% of AUM)
- CTA: $16.2 million (7.8% of AUM)
- MTBA: $15 million (7.2% of AUM)
- EMB: $7.6 million (3.7% of AUM)
As of Thursday morning, shares of 3M Company were priced at $152.66, up 13% over the past year, lagging the S&P 500's 16% gain in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $24.6 billion |
| Net income (TTM) | $3.9 billion |
| Dividend yield | 1.87% |
| Price (as of Thursday morning) | $152.66 |
Company Snapshot
- 3M offers a diversified portfolio across safety and industrial products, transportation and electronics solutions, healthcare products, and consumer goods.
- It generates revenue by manufacturing and distributing proprietary products and solutions, leveraging innovation and global distribution channels.
- The company serves industrial clients, healthcare providers, transportation sectors, and end consumers through both direct and indirect sales networks worldwide.
3M Company is a global industrial conglomerate with a broad product portfolio.
Foolish Take
Peak Financial Advisors’ decision to fully exit its nearly $2.8 million position in 3M Company (NYSE: MMM) marks an interesting break from one of the industrial sector’s most complex turnaround stories. The Denver-based firm—which emphasizes tailored, tax-conscious wealth management—perhaps chose to reallocate capital amid 3M’s uneven fundamentals and sluggish stock performance, which lags the S&P 500 by three percentage points this year.
In its latest quarter, 3M reported $6.3 billion in GAAP sales, up 1.4% year over year, and operating metrics were mixed. The company’s GAAP operating income margin fell from 20.3% to 18%, while operating cash flow came in at negative $1 billion due largely to litigation-related costs tied to synthetic chemicals (PFAS) and Combat Arms earplug settlements. Adjusted results were stronger—EPS rose 12%—but underlying cash strain and legal costs remain headwinds.
CEO William Brown called the results “solid,” and while 3M raised its full-year EPS guidance, investors remain wary as the company restructures and prepares to exit PFAS production. For long-term investors, the story hinges less on near-term margin recovery and more on how sustainable the company's broader turnaround efforts will be.
Glossary
13F assets: Securities and assets that institutional investment managers must report quarterly to the Securities and Exchange Commission (SEC) under Form 13F.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a financial institution or fund.
Quarterly average price: The average price of a security calculated over a specific quarter, used for transaction estimates.
Reportable assets: Investments that must be disclosed to regulators, typically due to size or regulatory requirements.
Dividend yield: Annual dividends paid by a company divided by its share price, expressed as a percentage.
Industrial conglomerate: A large corporation operating in multiple, often unrelated, industrial sectors.
Proprietary products: Goods or solutions developed and owned by a company, often protected by patents or trademarks.
Direct and indirect sales networks: Methods of selling products either directly to customers or through intermediaries such as distributors or retailers.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 3M. The Motley Fool has a disclosure policy.
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