Please ensure Javascript is enabled for purposes of website accessibility

Why Nano Dimension Stock Fell 28.4% in February

By Keith Noonan - Mar 4, 2021 at 9:08AM

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

Market volatility is threatening the 3D-printing company's incredible run.

What happened

Shares of Nano Dimension (NNDM -5.53%) sank 28.4% in February, according to data from S&P Global Market Intelligence. There wasn't much in the way of business-specific news behind the pullback. The 3D-printing specialist has been on an incredible run and posted fantastic gains, but it got caught up in a sell-off for growth-dependent tech stocks late last month. 

NNDM Chart

NNDM data by YCharts

Despite recent declines, Nano Dimension stock has skyrocketed roughly 653% over the last year. Its machines could pave the way for some revolutionary breakthroughs, but that doesn't mean the young company is immune to market volatility. 

The Dragonfly 2020 Pro 3D printer.

Image source: Nano Dimension.

So what

Substantial gains for Treasury bond rates prompted some investors to move out of tech stocks in favor of safer investment vehicles in February. The dynamic has raised questions about whether tech's incredible run is coming to a halt.

Nano Dimension's share price has soared over the last year amid signs of long-term demand for the company's 3D-printing machines, which are tailored for the additive production of semiconductors and other high-end electronics components. The company has a market capitalization of roughly $2.2 billion and is valued at approximately 436.5 times this year's expected sales even after recent sell-offs.

Now what

Amid a continued pullback for growth-dependent stocks, Nano Dimension has slipped further early in March's trading. The company's share price is down roughly 14.5% in the month so far. 

NNDM Chart

NNDM data by YCharts

The coronavirus pandemic has impacted near-term demand for its DragonFly 3D printers, but management is seeing relatively encouraging performance for machine upgrades and initial device sales. For the 2020 fiscal year, Nano Dimension expects to report roughly $3.4 million in sales. The company also estimates having cash reserves of roughly $990 million against zero debt as of Jan. 31, 2021, and it's preparing for a substantial sales push in anticipation of rebounding demand.

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

Nano Dimension Ltd. Stock Quote
Nano Dimension Ltd.
$2.82 (-5.53%) $0.17

*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 service.

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 05/21/2022.

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.