Why Are 3D Printing Stocks Down Sharply Over The Past 3 Months?

Shares of 3D printing stocks are having a tough time as of late, despite the exciting opportunities in the field. Three companies in the sector, 3D Systems Corporation DDD, Stratasys, Ltd. SSYS and Organovo Holdings Inc ONVO, have each recorded at least a 20 percent drop in the current month alone.

Three potential reasons for the negative sentiments within the sector include:

• Short interest of over 20 percent in 3D Systems, although it dipped 3.1 percent from the previous period.
• A recent Piper Jaffray survey indicated a weak 3D printer market.
• HP Inc HPQ's entry into the 3D printer market.

Piper Jaffray's Troy Jensen commented on the survey results, saying they "were extremely discouraging," especially for 3D Systems and Stratasys.

He predicted that both the companies might miss revenue expectations for the third quarter, while saying earnings might not be a problem based on gains from cost cuttings.

Reporting Dates

• 3D Systems will report its results on November 3. Analysts expect EPS of $0.09 on revenue of $160.16 million.
• Organovo to announce its results on November 3. Analysts estimate a loss per share of $0.11 on revenue of $750,000.
• Stratasys would release its results on November 15. The Street is looking for an EPS of $0.05 on revenue of $174.54 million.

Recent Stock Performance

• 3D Systems dropped about 22 percent in October, but gained roughly 4 percent in the three-month period. At last check, 3D Systems was up 1.31 percent at $13.94.
• Stratasys fell approximately 21 percent in the current month and about 9 percent in the three-month period. The stock was recently seen up 0.11 percent at $19.02.
• Organovo lost about 32 percent in October and about 40 percent in the three-month period. At last check, Organovo was down 1.15 percent at $2.57.