3D Systems Shares Rise 26% in Heavy Trading
Shares of 3D Systems Corp. of Valencia jumped nearly 26%, or $3.19, to $15.63 in Nasdaq trading Wednesday, which the company said might reflect new investor interest following recent presentations it has made to financial analysts.
Nearly 1 million shares traded, more than 10 times the company’s typical daily volume, lifting the stock to its highest close since 1997.
3D makes machines that convert computer designs into solid objects by digitally instructing a laser to build a prototype out of liquid epoxy plastic. The technology can be used in designs ranging from three-dimensional scale models of auto parts to full-size prototypes of small toys.
In its meetings with investment analysts recently, the company said it has discussed efforts to develop materials that can be shaped like liquid epoxy but that would have the durability of industrial plastics such as polypropylene.
Such materials would allow customers to produce final products rather than only prototypes using 3D Systems equipment.
Brian Service, chief executive of 3D Systems (ticker symbol: TDSC), said that would make the firm’s “solid imaging technology” attractive to companies producing plastic parts in short runs of 10,000 to 20,000 units. Traditional tooling remains more economical at higher production rates, Service said.
Service said he has been “guarded” in his comments to analysts and has not provided financial projections.
“We are just talking about the prospects we see for this company long term,” Service said. “Our technology will have broader applications based on the development of new materials.”
He said he did not know what, specifically, sparked the jump in the stock and trading volume Wednesday, beyond what he characterized as a steady climb for the stock in recent months.
Shares of 3D Systems, which has 400 employees, including 120 in Valencia, have risen 84% since Jan. 1, and 181% over the last 12 months.
In April, 3D Systems reported first-quarter earnings of $1.1 million, or 9 cents a share. That compared with a loss of $2.3 million, or 20 cents a share, in the same period a year earlier. Revenue rose slightly to $23.0 million from $22.7 million.
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Sudden Spike
3D Systems shares rocketed Wednesday, following the company’s recent presentations to analysts. Weekly closes and latest on Nasdaq:
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Wednesday: $15.63, up $3.19
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Source: Bridge News
