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Why 3D Systems Stock Popped Today

By Chris Neiger - Jan 19, 2021 at 3:37PM

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An analyst started coverage of the company and investors pounced.

What happened 

Shares of 3D Systems (DDD 3.23%) jumped today after Stifel analyst Noelle Dilts initiated coverage of the company. 

The tech stock was up by as much as 18.5% today and had gained 13.2% as of 3:14 p.m. EST. 

So what

Dilts started coverage of the company with a hold rating and a price target of $28. The analyst said that she likes the company's products and its large installed base.

A line graph on top of a blue bar chart.

Image source: Getty Images.

While Dilts is optimistic about 3D Systems, she did say that the near-term upside could be limited following the stock's 116% share price surge earlier this month. Management said on Jan. 7 that the company's fourth-quarter revenue will be between $170 million and $176 million, outpacing Wall Street's expectations.

The share price had been relatively flat for an entire year, but with the gains earlier this month, on top of today's increase, the company's stock is up 193% over the past four weeks.  

Now what 

Considering that 3D Systems' share price jumped so high on one analyst's report, and the fact that the company's stock has skyrocketed so high in just a matter of weeks, investors should proceed with caution with this stock. It's clear that any bit of good or bad news could send the share price flying high or tumbling.

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3D Systems Corporation Stock Quote
3D Systems Corporation
DDD
$10.56 (3.23%) $0.33

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