Zacks Investment Research cut shares of Stratasys (NASDAQ:SSYS) from a hold rating to a sell rating in a research report sent to investors on Friday morning.
According to Zacks, “Stratasys reported mixed results for Q4, wherein earnings matched the Zacks Consensus Estimate while revenues surpassed the same. The stock has outperformed the industry in a year’s time frame. Nonetheless, we remain concerned about its declining gross margin which has been impacted by the incremental sales generated from the lower-margin products of acquired businesses including MakerBot, Solid Concepts and Harvest Technologies. Stratasys had witnessed gross margin decline in each of the four quarters of 2017. However, Stratasys managed to mitigate this gross margin contraction by lowering operating expenses as a percentage of revenues. But, we opine that it will be a tough task for the company to lower operating expenses continuously as it will have to continue to invest in marketing and R&D to generate higher sales, which will weigh on its operating margins.”
A number of other equities analysts have also recently issued reports on SSYS. Citigroup set a $29.00 target price on Stratasys and gave the stock a buy rating in a report on Wednesday, November 15th. Loop Capital decreased their target price on Stratasys from $24.00 to $21.00 and set a hold rating on the stock in a report on Wednesday, November 15th. B. Riley restated a hold rating and issued a $30.00 target price on shares of Stratasys in a report on Wednesday, November 15th. BidaskClub cut Stratasys from a hold rating to a sell rating in a report on Friday, December 29th. Finally, ValuEngine cut Stratasys from a hold rating to a sell rating in a report on Friday, February 2nd. Six investment analysts have rated the stock with a sell rating, eight have issued a hold rating and five have issued a buy rating to the stock. The stock currently has a consensus rating of Hold and an average target price of $25.50.
Stratasys (NASDAQ:SSYS) last issued its earnings results on Wednesday, February 28th. The technology company reported $0.16 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.15 by $0.01. The business had revenue of $179.34 million for the quarter, compared to analysts’ expectations of $174.30 million. Stratasys had a positive return on equity of 0.66% and a negative net margin of 5.98%. The company’s quarterly revenue was up 2.3% on a year-over-year basis. During the same period in the previous year, the firm posted $0.15 EPS. analysts anticipate that Stratasys will post 0.17 earnings per share for the current fiscal year.
Several institutional investors have recently modified their holdings of SSYS. Ameritas Investment Partners Inc. boosted its position in shares of Stratasys by 11.7% in the second quarter. Ameritas Investment Partners Inc. now owns 4,388 shares of the technology company’s stock worth $102,000 after buying an additional 458 shares during the period. Investment Management of Virginia LLC acquired a new stake in shares of Stratasys in the fourth quarter worth $200,000. Chicago Equity Partners LLC acquired a new stake in shares of Stratasys in the third quarter worth $214,000. Thompson Investment Management Inc. acquired a new stake in shares of Stratasys in the third quarter worth $245,000. Finally, LPL Financial LLC boosted its position in shares of Stratasys by 24.2% in the fourth quarter. LPL Financial LLC now owns 12,511 shares of the technology company’s stock worth $250,000 after buying an additional 2,439 shares during the period. 75.16% of the stock is owned by institutional investors and hedge funds.
Stratasys Company Profile
Stratasys, Inc is a manufacturer of three-dimensional (3D) printers and rapid prototyping (RP) systems for the office-based RP and direct digital manufacturing (DDM) markets. The Company develops, manufactures and sells a product line of 3D printers and DDM systems (and related consumable materials) that create physical models from computer-aided design (CAD) designs.
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