ExOne Stock Is Emerging As A 3D Printing Winner
MarketBeat.com | Aug 27, 2021 05:50AM ET
Industrial sand and metal 3D printer company The ExOne Company (NASDAQ:XONE) has reversed its tumultuous downtrend after peaking at a high of $66.48 on Feb. 9, 2021 to collapse to a low of $15.31 on July 27, 2021. The Company released improved earnings and then agreed to be acquired by Desktop Metal (NYSE:DM) around roughly $25.50 per share in a cash and stock deal. The 3D printing trend is continuing to flourish as the industrial, automotive, and aerospace sectors continue to adopt the technology. The combined entity will be a strong player in the additive manufacturing (AM) segment of 3D printing with its cutting-edge technology. Desktop Metal is poised to roll out one of the fastest 3D printers in the market. They plan to execute their AM 2.0 strategy for mass production providing unrivaled customer choice and product portfolio in casting. ExOne provides full digital casting workflows to Desktop Metal’s sand printing solutions. The combined distributions include over 200 channel partners in over 65 countries. Prudent investors seeking exposure in next-gen 3D printing technology can watch for pullbacks in shares of ExOne.h2 Q2 FY 2021 Earnings Release /h2
On Aug. 11, 2021, ExOne released its second-quarter fiscal 2021 earnings report for the period ended in June 2021. The Company reported a loss of (-$0.25) per share versus consensus analyst estimates for a loss of (-$0.27) per share, a $0.02 per share beat. Revenues grew 69% year-over-year (YoY) to $18.78 million, beating consensus estimates by $3.67 million. The Company had record backlog of $48.7 million, up 27% YoY. The quarter also had all-time highs for quarterly recurring revenues at $8.3 million, up 34% YoY thanks to material sales. ExOne CEO John Hartner commented, “The ExOne Team is proud to deliver a record second quarter revenue result, driven by market momentum we continue to see for our portfolio of products, which we believe is the strongest in the company’s history and also in the binder jet marketplace, as well as an all-time high in both quarterly recurring revenue and backlog. We’re also benefiting from secular trends that we believe will continue to lift ExOne long into the future, such as a desire to lightweight cars and aircraft for sustainability benefits. While COVID-19 continues to cast uncertainty over the markets we serve, we also see early signs of an economic restart, led by the U.S. market, and a shift in manufacturing approach as a direct result of the pandemic that also benefits ExOne. We’re talking to an increasing number of manufacturers who are looking to de-risk and shorten supply chains in a way that supports increased interest in additive manufacturing technologies such as binder jetting for more localized production.”
h2 Acquisition By Desktop Metal /h2On Aug 11, 2021, ExOne entered into a definitive agreement to be acquired by Desktop Metal for $25.50 in cash and stock equating to a $550 million deal. The deal is comprised of $8.50 in cash and $17.00 in shares of Desktop Metal for each common share of ExOne, implying a $47.6% premium. Desktop Metal CEO Ric Folup stated:
Get The News You Want
Read market moving news with a personalized feed of stocks you care about.Get The App
“We are thrilled to bring ExOne into the DM family to create the leading additive manufacturing portfolio for mass production. We believe this acquisition will provide customers with more choice as we leverage our complementary technologies and go-to-market efforts to drive continued growth. This transaction is a big step in delivering on our vision of accelerating the adoption of additive manufacturing 2.0.”
Upon closing of the transaction, Desktop Metal shareholders will own 85% to 88% and ExOne shareholders will own between 12% and 15% of the combined entity. The transaction is expected to close in Q4 2021.
Using the rifle charts on the weekly and daily time frames provides a precision view of the landscape for XONE stock. While the Company is being acquired by Desktop Metal, shares are still experiencing some reversions that investors can capitalize on. The weekly rifle chart reversed its downtrend as it attempts a breakout on the rising 5-period moving average (MA) at $19.39 to crossover the 15-period MA at $20.03. The initial spike on Q2 2021 earnings results peaked near the $25.13 Fibonacci (fib) level. The weekly formed a market structure high (MSH) sell trigger when shares fell under $31.51. However, the weekly market structure low (MSL) buy triggered above the $17.29 price level. The daily rifle chart shows a make-or-break situation as the 5-period MA slopes down at $23.02 attempt to channel tighten towards its 15-period MA rising at $20.05. The daily stochastic peaked and fell back under the 80-band.
Prudent investors can look for opportunistic pullback levels at the $20.49 fib, $19.35, $18.26 fib, $17.29 weekly MSL trigger, and the $15.25 fib.
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.