Please ensure Javascript is enabled for purposes of website accessibility

Why 3D Systems Stock Just Popped 15%

By Rich Smith - Updated Feb 3, 2021 at 1:22PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

3D is gearing up for something big.

What happened

Shares of 3D Systems (DDD -2.00%) are on a tear today, up 15.3% at 12:25 p.m. EST. This morning, the 3D-printing company announced a 100,000-square-foot expansion of its headquarters campus in Rock Hill, South Carolina.  

So what

Why such excitement over a construction project? This isn't just an addition of office space we're talking about. Rather, 3D says it will be consolidating "materials manufacturing, quality, and logistics operations" and putting them all next door to management. It will also expand its "advanced manufacturing capabilities for both metal and polymer components," and add "new and expanded materials development laboratories." The aim is to improve operating efficiencies, accelerate product development, and reduce time to market.

Or in financial terms, boosting sales and improving profit margins.

Origami dollar folded into an arrow pointing up

Image source: Getty Images.

Now what

CEO Jeffrey Graves explained that the floor-space expansion is part of the company's restructuring and reorganization plan announced last year. This is the same plan that permitted 3D to raise the possibility that it will finally return to profitability in the fourth quarter, igniting an 84.5% rally in the stock. So it's understandable that investors are taking today's news as good news.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

3D Systems Corporation Stock Quote
3D Systems Corporation
$10.31 (-2.00%) $0.21

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.