3D Systems (DDD) Downgraded by Zacks Investment Research to Hold
Zacks Investment Research downgraded shares of 3D Systems (NYSE:DDD) from a strong-buy rating to a hold rating in a research note published on Tuesday morning.
According to Zacks, “3D Systems has been benefiting from favorable 3D printing industry fundamentals, led by rising demand for diverse application of this novel technology across several domains. Going forward, strong demand for production printers, materials and software will likely act as major catalysts for growth. We also believe that last year’s acquisition of Vertex-Global Holding B.V has unlocked multiple opportunities for the company. Shares have outperformed the industry in the year-to-date period. Estimates have been stable lately ahead of the company’s Q3 earnings release. The company has mixed record of earnings surprises in recent quarters.Nonetheless, the company’s declining gross margin due to unfavorable sales mix and increased investment in services, and on-demand manufacturing, is a major concern. Moreover Printing giant HP is surging into the 3D printing market and looks well-positioned to challenge 3D Systems' leadership.”
Several other equities analysts have also weighed in on the stock. ValuEngine raised shares of 3D Systems from a buy rating to a strong-buy rating in a research report on Thursday, August 9th. Piper Jaffray Companies reissued a sell rating and issued a $14.00 price objective on shares of 3D Systems in a research report on Wednesday, August 8th. Canaccord Genuity reissued a hold rating and issued a $13.00 price objective (up from $11.00) on shares of 3D Systems in a research report on Wednesday, August 8th. Loop Capital upped their price target on shares of 3D Systems to $17.00 and gave the company a hold rating in a research note on Wednesday, August 8th. They noted that the move was a valuation call. Finally, B. Riley upped their price target on shares of 3D Systems from $7.00 to $9.00 and gave the company a sell rating in a research note on Wednesday, August 8th. Six equities research analysts have rated the stock with a sell rating, six have assigned a hold rating, one has given a buy rating and two have given a strong buy rating to the stock. 3D Systems has an average rating of Hold and an average target price of $13.19.
3D Systems (NYSE:DDD) last issued its quarterly earnings data on Tuesday, August 7th. The 3D printing company reported $0.06 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.06) by $0.12. The company had revenue of $176.57 million for the quarter, compared to analyst estimates of $165.83 million. 3D Systems had a negative net margin of 11.54% and a negative return on equity of 9.22%. As a group, equities research analysts anticipate that 3D Systems will post -0.13 earnings per share for the current fiscal year.
In related news, COO Kevin Mcalea sold 20,000 shares of the company’s stock in a transaction dated Wednesday, August 22nd. The shares were sold at an average price of $21.21, for a total value of $424,200.00. Following the transaction, the chief operating officer now directly owns 250,257 shares in the company, valued at $5,307,950.97. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Andrew Martin Johnson sold 4,200 shares of the stock in a transaction dated Thursday, October 4th. The stock was sold at an average price of $17.95, for a total transaction of $75,390.00. Following the sale, the executive vice president now owns 213,025 shares in the company, valued at $3,823,798.75. The disclosure for this sale can be found here. Insiders sold 29,200 shares of company stock worth $594,640 over the last 90 days. 5.00% of the stock is currently owned by corporate insiders.
Institutional investors have recently made changes to their positions in the business. Natixis grew its stake in 3D Systems by 802.8% during the second quarter. Natixis now owns 191,193 shares of the 3D printing company’s stock worth $2,640,000 after buying an additional 170,016 shares in the last quarter. Royce & Associates LP grew its stake in 3D Systems by 8.6% during the second quarter. Royce & Associates LP now owns 797,487 shares of the 3D printing company’s stock worth $11,013,000 after buying an additional 63,000 shares in the last quarter. Principal Financial Group Inc. grew its stake in 3D Systems by 1.6% during the first quarter. Principal Financial Group Inc. now owns 493,488 shares of the 3D printing company’s stock worth $5,719,000 after buying an additional 7,565 shares in the last quarter. BlackRock Inc. grew its stake in 3D Systems by 29.4% during the second quarter. BlackRock Inc. now owns 16,413,577 shares of the 3D printing company’s stock worth $226,672,000 after buying an additional 3,727,372 shares in the last quarter. Finally, Bank of New York Mellon Corp grew its stake in 3D Systems by 5.8% during the second quarter. Bank of New York Mellon Corp now owns 1,313,379 shares of the 3D printing company’s stock worth $18,138,000 after buying an additional 71,725 shares in the last quarter. Hedge funds and other institutional investors own 71.20% of the company’s stock.
3D Systems Company Profile
3D Systems Corporation, through its subsidiaries, provides three-dimensional (3D) printing products and services worldwide. The company offers 3D printers, such as stereolithography, selective laser sintering, direct metal printing, multi jet printing, and color jet printers that transform data input generated by 3D design software, CAD software, or other 3D design tools into printed parts under the Accura, DuraForm, LaserForm, CastForm, and VisiJet brand names.
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