3D Systems Corporation (NYSE:DDD) shares have tanked more than 48% from the January 3 high of $97 to about $48.60 on Monday. The stock got a big blow late last week when JPMorgan analysts Paul Coster and Mark Strouse lowered their price target on the stock from $43.50 to $40. The price target reflects a downside potential of about $16%. Notably, the research firm had a $54 price target before 3D Systems’ first quarter results.
Can 3D Systems impress investors with its execution?
Meanwhile, Ned Davis Research upgraded 3D Systems Corporation (NYSE:DDD) from Sell to Neutral in a research note Monday. In contrast, Citigroup has a Buy rating on the stock with $60 price target. The Rock Hill, South Carolina-based company has been aggressively expanding its reach with acquisitions and partnerships. Yesterday, 3D Systems joined hands with the wholesale distributor of tech products ScanSource, Inc. (NASDAQ:SCSC). Under the terms of the deal, ScanSource will sell a wide variety of 3D Systems’ products to its clients, initially in the U.S. and then in international markets.
After exploring the “acquired growth opportunities,” a big challenge before 3D Systems Corporation (NYSE:DDD) is to successfully integrate its recent purchases into a “coherent scalable platform.” The company will also have to prove its execution skills by coming up with new growth initiatives without compromising on operating margins. Investors were initially focused on the huge total addressable market (TAM) opportunity and the high-tech concept of 3D printing. But the focus is now shifting to execution.
3D Systems CFO sells shares
In another development, 3D Systems Corporation (NYSE:DDD) CFO Damon J. Gregoire revealed in his SEC filing that he offloaded 22,500 shares of the company in an open market transaction dated May 7. Gregoire sold the shares at an average price of $49 apiece for a total value of $1,102,500. After the deal, he still owns 301,500 shares of 3D Systems that are currently valued at $14,773,500.
3D Systems Corporation (NYSE:DDD) shares inched up 0.10% to $48.68 in pre-market trading Tuesday.