Earlier this month there were a couple of insiders making big sells of their stake in the 3-D printing company, 3D Systems. These two insiders were President and CEO Abraham Reichental and Vice President Kevin McAlea, and together the two raked in over $6.1 million.
Kevin McAlea made the first sell on Dec. 10, selling 22,526 shares of the company’s stock. He sold these shares at $80.35 per share for a total transaction amount of $1,809,964. Since his sell the price per share has increased 7.12%.
McAlea made another sell on Dec. 11 where he sold an additional 29,658 shares of 3D’s stock. He sold the second set of shares at an average price of $77.50 per share for a total transaction amount of $2,298,495. Since his most recent sell the price per share has increased a notable 11.06%. McAlea now holds on to 145,000 shares of company stock.
Most recently, the company’s CEO sold 25,000 shares of his stake in the company. Reichental sold these shares at $80.91 per share, raking in a total of $2,022,750. Since his sell the price per share has increased approximately 6.38%. The CEO now holds on to 1,614,054 shares of the company’s stock. Reichental’s previous most recent transaction was in May, when he sold a massive 400,000 shares of his company’s stock. Since that sell, the price per share has jumped up 115.18%.
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- DDD 15-Year Financial Data
- The intrinsic value of DDD
- Peter Lynch Chart of DDD
Reichental has served as the company’s president and CEO since 2003 and McAlea has worked with the company since 2001.
3D Systems is a provider of 3D content-to-print solutions including 3D printers, print materials and cloud sourced on-demand custom parts for professionals and consumers alike with materials including plastics, metals, ceramics and edibles. The company also provides integrated software and hardware tools including scan to CAD and inspection.
3D Systems’ historical revenue and net income:
Recently the company announced that it would be acquiring a part of Xerox’s Oregon-based solid ink engineering and development teams. This acquisition means an expanded partnership which leverages both companies’ capabilities and will ultimately result in marketplace leadership for the two companies. 3D Systems entered into an agreement to acquire the product design, engineering and chemistry group and related assets of Xerox’s Wilsonvile, Oregon team for $32.5 million in cash.
Also recently 3D System’s CEO was named to Fortune Magazine’s “2013 Top 50 People in Business” list. Reichental ranked #22 amongst those who “executed big, defied expectations and delivered stellar results for their shareholders.” The CEO was also ranked #2 in the technology category and #5 out of 100 global Fortune Magazine’s fastest-growing companies.
The Peter Lynch Chart suggests that the company is currently overvalued:
The company’s third quarter financial results provided mixed results. While the company raised full-year guidance, they also lowered the outlook for their adjusted-earnings per share. The company is currently trading at a record high today of $92.19 per share.
As of the close of the third quarter there were seven gurus maintaining a position in 3D Systems, with Chase Coleman’s Tiger Global Management holding the largest position. Tiger Global holds on to 1,274,456 shares as of Q3, representing 1.25% of the company’s shares outstanding and 1.2% of their total assets managed.
3D Systems has a market cap of $9.39 billion. Its shares are currently trading at around $92.18 with a P/E ratio of 131.70, a P/S ratio of 13.50 and a P/B ratio of 10.50. The company had an annual average earnings growth of 176.3% over the past five years.