What happened
Shares of 3D Systems Corporation (DDD 6.96%) fell sharply today as some investors appear to be taking some of their gains following a recent run-up of the company's share price.
The tech stock fell by as much as 14.2% today and was down 10.5% as of 2:03 p.m. EST.
So what
While there was no company-specific news related to 3D Systems' share price slide today, it's likely that investors are simply cashing in on some of the profit that they've made from the company's stock over the past few days. Even with today's drop, 3D Systems' stock has surged 120% since Jan. 7.
Image source: Getty Images.
On Jan. 7 the company announced that it has completed the sale of its non-core software business for about $64 million in cash. The company said it will use that money to pay off some of its debt and that it was terminating an "at-the-market" stock sales program, which was set up to sell new shares to investors.
Additionally, the company issued preliminary financial results for the fourth quarter of 2020, with management estimating revenue between $170 million and $176 million. That guidance is much better than the $140 million that Wall Street has been estimating for the company's fourth-quarter sales.
Now what
Investors flocked to 3D Systems' stock following the above announcements last week. And today's share price sell-off is likely a reaction by some investors to take the gains they've made over a short amount of time and put that money elsewhere. With today's drop though, existing 3D Systems investors may want to keep an eye out for further volatility.
