Why 3D Systems Corporation’s (DDD) Stock May Continue Much Higher


While it’s been a long time coming, shares of 3D Systems Corporation (NYSE:DDD) seem to have finally hit a bottom. The stock, which had been beaten down over 90% within the last two years, has recently given investors something to cheer about. This week the company reported preliminary earnings for the last quarter, and they were much better than analysts had expected. What this tells us is that the selloff likely was overdone and the 3D printing industry may have been beaten down too far over the last several months.

Shares of 3D Systems Corporation (NYSE:DDD) are up big in pre-market trading today following yesterday’s rally, and in our opinion could continue much higher over the next couple of quarters. Expectations for the industry are uncharacteristically low, meaning that it will take just slight earnings beats to spark further gains. 3D Systems Corporation (NYSE:DDD) has positioned themselves as one, if not ‘the’ market leader for enterprise-level additive manufacturing machines. Even though HP plans to enter the space late this year, 3D Systems has years of patents, experience and talent backing them up. Their balance sheet is stong and there is no reason for this company not to capitalize on the rapidly expanding 3D printing space over the coming few years.

The stock increased 8.49% or $0.69 on February 11, hitting $8.76. DDD has declined 47.58% since July 9, 2015 and is downtrending. It has underperformed the S&P500 by 38.71%.

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 35.39% above today’s ($8.76) 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 improved, 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 $930.51 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.