Shares of 3D Systems Corporation (NYSE:DDD) are up sharply in mid-morning trading today as investors may once again be jumping into the stock, seeing it as undervalued. The stock was up at one point this morning as much as 11.4% before giving a portion of those gains back.
The culprit of today’s move? It’s likely, the fact that the stock is trading down well over 90% from highs reached back in early 2014. With a market cap under $1 billion, the company is still one of the leaders within the rapidly expanding 3D printing space. This places 3D Systems Corporation (NYSE:DDD) in a strong position to realize substantial growth over the next two to three years, and puts them firmly in place as a solid takeover candidate for a larger tech firm looking to enter the 3D printing space.
While there is little doubt that the stock got ahead of itself in 2013 and 2014, there is also little doubt that 3D printing is the future of manufacturing. While many large firms may enter the space themselves, 3D Systems Corporation (NYSE:DDD) has a strong patent portfolio and decades of experience,giving the company quite a significant advantage in the market.
The stock is up 8.32% or $0.62 following the news, hitting $8.07 per share. About 1.26 million shares traded hands. DDD has declined 61.95% since June 29, 2015 and is downtrending. It has underperformed the S&P500 by 53.08%.
From a total of 9 analysts covering 3D Systems Corporation (NYSE:DDD) stock, 2 rate it a “Buy”, 1 a “Sell”, and 6 a “Hold”. This means that 22% of the ratings are positive. The highest target price is $22 while the lowest target price is $9. The mean of all analyst targets is $11.86 which is 46.96% above today’s ($8.07) stock price. 3D Systems Corporation was the topic of 16 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Canaccord Genuity maintained shares on January 15 with a “Hold” rating. Piper Jaffray upgraded shares to a”Neutral” rating and a $14 target share price in their report from an August 7. Stephens upgraded DDD stock in a recent report from December 17 to a “Overweight” rating. Finally, Stifel Nicolaus maintained the stock with a “Hold” rating in a report they issued on an August 7.
The institutional sentiment increased to 1.1 in Q2 2015. It’s up 0.02, from 1.08 in 2015Q2. The ratio increased, as 48 funds sold all their 3D Systems Corporation shares they owned while 63 reduced their positions. 40 funds bought stakes while 82 increased their total positions. Institutions now own 65.81 million shares which is 14.52% more than the previous share count of 57.46 million in 2015Q2.
Investment Management Of Virginia Llc holds 4.97% of its total portfolio in 3D Systems Corporation, equating to 1.63 million shares. Clark Estates Inc Ny owns 1.43 million shares representing 2.83% of their total US portfolio. Moreover, Wall Street Access Asset Management Llc has 2.8% of their total portfolio invested in the company, equating to 365,259 shares. The Louisiana-based Villere St Denis J & Co Llc has a total of 2.43% of their portfolio invested in the stock. Bluefin Trading Llc, a New York-based fund reported 1.14 million shares owned.
Since September 10, 2015, the stock had 0 buys, and 1 insider sale for a total of $106,716 in net activity. Johnson Andrew Martin sold 8,000 shares worth $106,716.
3D Systems Corporation is a holding company. The company has a market cap of $935.41 million. The Firm is a well-known provider of three-dimensional printing centric solutions. It currently has negative earnings. It provides 3D design-to-manufacturing solutions, including 3D printers, print materials and cloud sourced custom parts.