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 $41.6 million.
  • DDD has traded 1.5 million shares today.
  • DDD is trading at 9.16 times the normal volume for the stock at this time of day.
  • DDD is trading at a new low 12.02% 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.

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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 3.6 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 1.54 and a short float of 25% with 8.90 days to cover. Shares are up 69.3% year-to-date as of the close of trading on Friday.

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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, 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 against the S&P 500 and did not exceed that of the Computers & Peripherals industry. The net income has significantly decreased by 35.0% when compared to the same quarter one year ago, falling from -$13.18 million to -$17.79 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.
  • The share price of 3D SYSTEMS CORP has not done very well: it is down 14.26% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 3D SYSTEMS CORP's earnings per share declined by 33.3% in the most recent quarter compared to 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 ($0.32 versus -$5.85).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.8%. Since the same quarter one year prior, revenues slightly dropped by 5.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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