3D Systems (DDD) Stock’s Volatility Remains, Despite An Upgraded Recommendation

3D Systems Corporation (DDD) closed the week on Friday dropping 2.31 percent to settle at $7.20. The stock remained volatile after announcing weaker results on November 5, but has get a boost last week upon receiving supportive recommendation by global investment banking & wealth management firm William Blair.

Brian Drab, analyst at William Blair, notices the recovery of the 3D Systems market and the right approach of the company’s new management to minimize costs. This will allow the return of 3D systems to profitability in 2021. The firm upgraded its “Under Perform” rating to “Market Perform” on Tuesday, November 10.

Less than a month ago, in October, Brian Drab questioned the reason for the rise in the price of DDD, which caused the stock to fall. Thanks to a supportive comment from the analytical company Craig-Hallum, quotes rose even earlier.

DDD shares were therefore volatile in 2020 and strongly responded to the remarks. The explanation is that the dynamics of financial metrics are unpredictable. 3D Systems’ sales decreased 13 percent year-on-year in the third quarter, while the loss quadrupled to nearly $73 million. By selling non-core assets and concentrating on promising areas such as 3D printing for clinical medicine, the company is seeking to strengthen its balance sheet. However, to maintain a long-term upward trajectory, 3D Systems needs to show sustainable growth in revenue and profitability. 3D Systems has the potential to do this despite many challenges, as the market for metal and high-strength composite printing is increasing.

Though shares of 3D Systems Corporation (DDD) have dropped on weekend but still succeeded to add 15.38 percent over the past week and are up 10.09 percent since release of the quarterly results. Over the month company has added 7.95% but that is a drop of 17.71 percent since start of the year.