Trade-Ideas LLC identified 3D Systems ( DDD) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified 3D Systems as such a stock due to the following factors:
- DDD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $53.9 million.
- DDD has traded 1.3 million shares today.
- DDD is trading at 4.38 times the normal volume for the stock at this time of day.
- DDD is trading at a new low 7.24% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success. EXCLUSIVE OFFER: Get the inside scoop on opportunities in DDD with the Ticky from Trade-Ideas. See the FREE profile for DDD NOW at Trade-Ideas More details on DDD: 3D Systems Corporation, through its subsidiaries, provides 3D printing products and services worldwide. Currently there is 1 analyst that rates 3D Systems a buy, 3 analysts rate it a sell, and 10 rate it a hold. The average volume for 3D Systems has been 4.2 million shares per day over the past 30 days. 3D Systems has a market cap of $1.7 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.72 and a short float of 23.7% with 6.25 days to cover. Shares are up 67% year-to-date as of the close of trading on Wednesday. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates 3D Systems as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Computers & Peripherals industry. The net income has significantly decreased by 38550.4% when compared to the same quarter one year ago, falling from $1.55 million to -$596.37 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, 3D SYSTEMS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $7.48 million or 67.77% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 31.31%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 53300.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- 3D SYSTEMS CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, 3D SYSTEMS CORP swung to a loss, reporting -$5.85 versus $0.11 in the prior year. This year, the market expects an improvement in earnings ($0.37 versus -$5.85).
- You can view the full 3D Systems Ratings Report.
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