Thomas Erickson, a director at 3D Systems Corp (DDD), recently added 50,000 shares to his holdings. The buy increased his position by 32 percent, and came to a total cost of $328,400.
This is the first insider buy in a year, following a 20,000 share pickup from the company’s President and CEO in November 2022. Insiders made a few small buys earlier in 2022, and three insiders sold in the past 12 months.
Overall, 3D Systems insiders own 2.4 percent of shares.
The 3D printer designer and manufacturer has seen shares get cut in half over the past year. The company has lost money, and revenues have declined 6 percent.
That’s taken shares just under their book value at their current price, and 3D Systems does have over $400 million in cash on the balance sheet to get through continued weakness in the 3D printing space right now.
Action to take: Shares look inexpensive enough that they could be a contrarian buy here.
If the company can move to profitability and if 3D printing continues to expand as a technology, shares should be worth far more than they are today.
For traders, shares have been trending higher in the past few weeks, and that trend looks likely to continue. The May 2024 $7 calls, last going for about $0.50, could see high-double-digit gains on a continued rally.
Traders may want to take profits in the coming weeks rather than hold until expiration.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.