Shares of 3M Co. (MMM) took a significant hit on Monday, declining by 3.8%. This decline was enough to place the stock at the forefront of the Dow Jones Industrial Average’s losers. Investor concerns surrounding PFAS (per- and polyfluoroalkyl substances) exposure continue to weigh heavily on the company.
The past 12 sessions have seen 3M Co.’s stock experience decline in 11 of them. In fact, the stock is on track to close at its lowest point since November 21, 2012, according to Dow Jones Market Data. Although the stock saw a slight increase of 0.4% on Friday, ending a 10-day losing streak, this recent selloff resumption has proven to be quite significant.
3M Co. made headlines last week when it announced that it had ceased all manufacturing of PFAS, also known as “forever chemicals,” at a plant in Belgium. The company is actively working towards a complete exit from PFAS manufacturing by the end of 2025. This decision came after 3M Co. agreed to pay a substantial $10.3 billion settlement in June for all claims of responsibility regarding forever chemicals found in U.S. drinking water.
In addition to this, 3M Co. reached an agreement in August to pay $6 billion in order to settle claims of potentially faulty ear protection sold to the U.S. military. As a result, the stock has experienced a decline of 10.1% over the past three months, while the overall Dow has seen a more modest decrease of 3.2%.
The continued selloff and investor concerns surrounding PFAS exposure have put significant pressure on 3M Co.’s stock performance. The company’s efforts to address these concerns and exit the PFAS manufacturing sector are crucial to restore investor confidence and regain traction in the market.