3D Systems (DDD) Rating Lowered to Sell at Zacks Investment Research

3D Systems (NYSE:DDD) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday.

According to Zacks, “3D Systems reported better-than-expected Q1 top-line results which also marked a year-over-year improvement. The company 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, as well as healthcare solutions 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. 3D Systems’ shares have grossly outperformed the industry average in the year-to-date period. 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. This apart, escalating R&D, IT and go-to-market expense may prove as significant headwinds, going forward.”

A number of other analysts have also weighed in on the stock. Stifel Nicolaus upped their price objective on shares of 3D Systems from $11.00 to $12.00 and gave the stock a “hold” rating in a research note on Thursday, March 15th. Loop Capital lowered their price objective on shares of 3D Systems to $10.00 and set a “hold” rating for the company in a research note on Thursday, May 3rd. ValuEngine raised shares of 3D Systems from a “sell” rating to a “hold” rating in a research note on Wednesday, May 2nd. Susquehanna Bancshares set a $12.00 price objective on shares of 3D Systems and gave the stock a “hold” rating in a research note on Friday, March 16th. Finally, Deutsche Bank increased their price target on shares of 3D Systems from $9.00 to $13.00 and gave the company a “hold” rating in a research report on Friday, March 16th. Seven equities research analysts have rated the stock with a sell rating, ten have given a hold rating, one has assigned a buy rating and one has given a strong buy rating to the company. The stock has a consensus rating of “Hold” and an average price target of $11.74.

NYSE DDD opened at $12.62 on Wednesday. The company has a quick ratio of 1.51, a current ratio of 2.02 and a debt-to-equity ratio of 0.01. 3D Systems has a 12 month low of $12.82 and a 12 month high of $13.31.

3D Systems (NYSE:DDD) last posted its quarterly earnings results on Wednesday, May 2nd. The 3D printing company reported ($0.03) EPS for the quarter, missing the Zacks’ consensus estimate of $0.01 by ($0.04). The company had revenue of $166.00 million during the quarter, compared to the consensus estimate of $159.59 million. 3D Systems had a negative return on equity of 10.41% and a negative net margin of 11.77%. The company’s revenue for the quarter was up 6.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.06 earnings per share. sell-side analysts predict that 3D Systems will post -0.2 earnings per share for the current year.

In other news, Director G Walter Loewenbaum II acquired 16,475 shares of the firm’s stock in a transaction on Monday, May 7th. The shares were bought at an average price of $10.12 per share, for a total transaction of $166,727.00. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 5.00% of the company’s stock.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Alps Advisors Inc. acquired a new stake in shares of 3D Systems during the 1st quarter worth about $117,000. Oppenheimer & Co. Inc. acquired a new stake in shares of 3D Systems during the 1st quarter worth about $120,000. Sciencast Management LP acquired a new stake in shares of 3D Systems during the 4th quarter worth about $106,000. Private Advisor Group LLC acquired a new position in 3D Systems in the 1st quarter valued at about $147,000. Finally, Xact Kapitalforvaltning AB acquired a new position in 3D Systems in the 4th quarter valued at about $116,000. Institutional investors and hedge funds own 63.14% of the company’s stock.

About 3D Systems

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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