3D Systems Corporation Assigned A Consensus ‘Hold’ Rating

3D Systems Corporation Assigned A Consensus ‘Hold’ Rating
Image Credit: 3D Systems Corporation

3D Systems Corporation (NYSE:DDD) stock has declined about 45% from its January 3 high of $97. But many analysts still don’t find it attractive enough at current levels. Investor and brokerage firms seem to have shied away from 3D Systems after its June quarter results missed the consensus estimate. On July 31, the 3D printing company reported EPS of 16 cents compared to analysts’ forecast of 18 cents. Its Q2 revenue of $151.50 million also missed the Wall Street estimate of $162.30.

Many analysts downgraded 3D Systems after Q2 results

Data from Thomson Reuters/First Call show that the stock has been assigned a consensus rating of Hold by 24 analysts covering the stock. Eleven analysts have a Buy rating, two recommend their clients Sell 3D Systems, and the remaining ten have given a Hold rating. One-year average price target is $67.10, with the highest price objective of $84.

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On July 31, FBR Capital downgraded 3D Systems from Outperform to Market perform. On August 1, RBC Capital Markets analysts downgraded the stock from Outperform to Sector perform. RBC also lowered its price target from $64 to $54. Same day, Pacific Crest reiterated its Outperform rating on 3D Systems stock, but reduced the price objective from $59 to $56.

3D Systems witnesses spike in short interest

Meanwhile, 3D Systems executives continue to unload shares of the company. Executive vice-president Charles Hull sold 7,500 shares in the open market on August 18. He unloaded those shares at an average price of $49.07 to rake in a total of $368,025. Short interest in the stock is also piling up. According to Nasdaq, the number of 3D Systems shares held short stood at 36.07 million on July 31, up from 32.33 million shares on June 30. It will take 8.88 days to cover the short positions.

3D Systems remains committed to expanding its facilities acquiring more companies. The company said in a press release Thursday that it was opening a new innovation center and software development unit in Cary, North Carolina. Last week, the company announced that it would increase its filament manufacturing capacity by opening a new production unit in Barberton, Ohio.

3D Systems shares jumped 2.70% to $50.65 at 10:54 AM EDT on Friday.

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