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Major 3D printing system manufacturer Stratasys is about to make a big announcement. The company will report financial results for the second quarter of 2019 at the end of July and is set to beat previously issued earnings guidance.
At least that is one way to read the recent share price bump.
June - Stratasys - Stock - % - Course
First observed on the 28th of June, Stratasys stock rose 14% during the course of a single day trading, reaching $29.44. Stocks rise and fall for an inordinate number of reasons, all of which can be boiled down to the rather prosaic statement – share price reflects the cumulative effect of buying and selling in the market. That fact does not prevent analysts, experts, soothsayers, and other practitioners of the dark financial arts striving to infer meaning. With this in mind, why did Stratasys stock see double-digit growth?
Stratasys share price. Chart via Google Finance.
New - Data - Company - Motivation - Shares
New data about a company is a prime motivation for buying or selling shares in a company. Stratasys has released no such material public information, and in this situation, a market correction, whereby the share price returns to its previous level would typically be expected. However, the stock has trundled along retaining the gain, trading at $29.49 as of writing.
Also of note is the valuation of the company in comparison to its peers, specifically 3D Systems. As the chart below illustrates, 3D Systems (in gray) has historically had a higher valuation by market capitalization than Stratasys.
Stratasys - Systems - Market - Cap - Data
Stratasys vs 3D Systems – Market Cap 2014-2019. Data via Yahoo Finance, chart by 3D Printing Industry.
Behind the numbers – a new CEO or a takeover?
Results - Driver - Appointment
Why is this? Well, the aforementioned better than expected financial results could be one driver, as could the appointment of...
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