Is Desktop Metal Stock a Good Investment?
Desktop Metal Investment Advice | DM |
- Examine Desktop Metal's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Desktop Metal's leadership team and their track record. Good management can help Desktop Metal navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Electronic Equipment, Instruments & Components space and any emerging trends that could impact Desktop Metal's business and its evolving consumer preferences.
- Compare Desktop Metal's performance and market position to its competitors. Analyze how Desktop Metal is positioned in terms of product offerings, innovation, and market share.
- Check if Desktop Metal pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Desktop Metal's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Desktop Metal stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Desktop Metal is a good investment.
Sell | Buy |
Sell
Market Performance | Weak | Details | |
Volatility | Relatively risky | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very High | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Very Weak | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Desktop Metal Stock
Researching Desktop Metal's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 38.0% of the company shares are held by company insiders. The book value of Desktop Metal was currently reported as 2.17. The company recorded a loss per share of 11.15. Desktop Metal last dividend was issued on the 11th of January 2019. The entity had 1:10 split on the 11th of June 2024.
To determine if Desktop Metal is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Desktop Metal's research are outlined below:
| Desktop Metal has a very high chance of going through financial distress in the upcoming years | |
| The company generated the yearly revenue of 189.7 M. Annual Net Loss to common stockholders was (323.27 M) with gross profit of 20.99 M. | |
| Desktop Metal reports about 76.29 M in cash with (115 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.81. | |
| Desktop Metal has a very weak financial position based on the latest SEC disclosures | |
| Roughly 38.0% of the company shares are held by company insiders | |
| Latest headline from MacroaxisInsider: Disposition of 3397 shares by Jonah Myerberg of Desktop Metal subject to Rule 16b-3 |
Desktop Metal Quarterly Accounts Payable |
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Desktop Metal uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Desktop Metal. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Desktop Metal's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of March 2024 Upcoming Quarterly Report | View | |
| 8th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of March 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Desktop Metal's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Desktop Metal's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-05-09 | 2024-03-31 | -0.06 | -0.05 | 0.01 | 16 | ||
2021-11-15 | 2021-09-30 | -0.09 | -0.1 | -0.01 | 11 | ||
2021-08-11 | 2021-06-30 | -0.09 | -0.08 | 0.01 | 11 | ||
2021-03-15 | 2020-12-31 | -0.07 | -0.08 | -0.01 | 14 | ||
2024-03-15 | 2023-12-31 | -0.05 | -0.03 | 0.02 | 40 | ||
2023-03-01 | 2022-12-31 | -0.09 | -0.07 | 0.02 | 22 | ||
2022-11-09 | 2022-09-30 | -0.08 | -0.1 | -0.02 | 25 | ||
2023-11-09 | 2023-09-30 | -0.05 | -0.08 | -0.03 | 60 |
Know Desktop Metal's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Desktop Metal is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Desktop Metal backward and forwards among themselves. Desktop Metal's institutional investor refers to the entity that pools money to purchase Desktop Metal's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Group One Trading, Lp | 2024-06-30 | 323 K | Lazard Asset Management Llc | 2024-06-30 | 318.2 K | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 286.3 K | Geode Capital Management, Llc | 2024-09-30 | 260.5 K | Boston Standard Wealth Management, Llc | 2024-06-30 | 206.1 K | Jane Street Group Llc | 2024-06-30 | 201.4 K | Kingswood Wealth Advisors Llc | 2024-09-30 | 146.9 K | Charles Schwab Investment Management Inc | 2024-09-30 | 138.1 K | Simplex Trading, Llc | 2024-06-30 | 131.5 K | Nea Management Company, Llc | 2024-06-30 | 1.4 M | Vanguard Group Inc | 2024-09-30 | 1.1 M |
Desktop Metal's market capitalization trends
The company currently falls under 'Small-Cap' category with a market capitalization of 147.37 M.Market Cap |
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Desktop Metal's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (1.13) | (1.07) | |
| Return On Capital Employed | (0.83) | (0.79) | |
| Return On Assets | (0.71) | (0.74) | |
| Return On Equity | (1.34) | (1.27) |
Determining Desktop Metal's profitability involves analyzing its financial statements and using various financial metrics to determine if Desktop Metal is a good buy. For example, gross profit margin measures Desktop Metal's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Desktop Metal's profitability and make more informed investment decisions.
Desktop Metal's Earnings Breakdown by Geography
Evaluate Desktop Metal's management efficiency
Desktop Metal has Return on Asset (ROA) of (0.2409) % which means that for every 100 dollars spent on asset, it generated a loss of $0.2409. This is way below average. Likewise, it shows a return on total equity (ROE) of (1.5296) %, which implies that it produced no returns to current stockholders. Desktop Metal's management efficiency ratios could be used to measure how well Desktop Metal manages its routine affairs as well as how well it operates its assets and liabilities. As of the 25th of November 2024, Return On Tangible Assets is likely to grow to -1.07. In addition to that, Return On Capital Employed is likely to grow to -0.79. At this time, Desktop Metal's Fixed Asset Turnover is very stable compared to the past year.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 7.50 | 14.98 | |
| Tangible Book Value Per Share | 2.17 | 2.06 | |
| Enterprise Value Over EBITDA | (1.12) | (1.18) | |
| Price Book Value Ratio | 1.00 | 1.05 | |
| Enterprise Value Multiple | (1.12) | (1.18) | |
| Price Fair Value | 1.00 | 1.05 | |
| Enterprise Value | 347.4 M | 330 M |
Desktop Metal has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.
Beta 0.598 |
Basic technical analysis of Desktop Stock
As of the 25th of November, Desktop Metal shows the Mean Deviation of 1.72, coefficient of variation of 2946.94, and Downside Deviation of 2.48. Desktop Metal technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Please confirm Desktop Metal variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to decide if Desktop Metal is priced favorably, providing market reflects its regular price of 4.16 per share. Given that Desktop Metal has jensen alpha of 0.0749, we urge you to verify Desktop Metal's prevailing market performance to make sure the company can sustain itself at a future point.Desktop Metal's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Desktop Metal insiders, such as employees or executives, is commonly permitted as long as it does not rely on Desktop Metal's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Desktop Metal insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Desktop Metal's Outstanding Corporate Bonds
Desktop Metal issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Desktop Metal uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Desktop bonds can be classified according to their maturity, which is the date when Desktop Metal has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View |
Understand Desktop Metal's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Desktop Metal's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0335 | |||
| Market Risk Adjusted Performance | 0.6765 | |||
| Mean Deviation | 1.72 | |||
| Semi Deviation | 2.31 | |||
| Downside Deviation | 2.48 | |||
| Coefficient Of Variation | 2946.94 | |||
| Standard Deviation | 2.99 | |||
| Variance | 8.95 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | 0.0749 | |||
| Total Risk Alpha | (0.38) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.6665 | |||
| Maximum Drawdown | 21.58 | |||
| Value At Risk | (3.95) | |||
| Potential Upside | 3.69 | |||
| Downside Variance | 6.17 | |||
| Semi Variance | 5.32 | |||
| Expected Short fall | (1.87) | |||
| Skewness | 2.64 | |||
| Kurtosis | 15.77 |
| Risk Adjusted Performance | 0.0335 | |||
| Market Risk Adjusted Performance | 0.6765 | |||
| Mean Deviation | 1.72 | |||
| Semi Deviation | 2.31 | |||
| Downside Deviation | 2.48 | |||
| Coefficient Of Variation | 2946.94 | |||
| Standard Deviation | 2.99 | |||
| Variance | 8.95 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | 0.0749 | |||
| Total Risk Alpha | (0.38) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.6665 | |||
| Maximum Drawdown | 21.58 | |||
| Value At Risk | (3.95) | |||
| Potential Upside | 3.69 | |||
| Downside Variance | 6.17 | |||
| Semi Variance | 5.32 | |||
| Expected Short fall | (1.87) | |||
| Skewness | 2.64 | |||
| Kurtosis | 15.77 |
Consider Desktop Metal's intraday indicators
Desktop Metal intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Desktop Metal stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 21361.56 | |||
| Daily Balance Of Power | (1.00) | |||
| Rate Of Daily Change | 0.94 | |||
| Day Median Price | 4.23 | |||
| Day Typical Price | 4.21 | |||
| Price Action Indicator | (0.20) | |||
| Period Momentum Indicator | (0.26) | |||
| Relative Strength Index | 29.72 |
Desktop Metal Corporate Filings
F4 | 25th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F3 | 19th of November 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
8K | 8th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 4th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
Desktop Stock media impact
Far too much social signal, news, headlines, and media speculation about Desktop Metal that are available to investors today. That information is available publicly through Desktop media outlets and privately through word of mouth or via Desktop internal channels. However, regardless of the origin, that massive amount of Desktop data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Desktop Metal news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Desktop Metal relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Desktop Metal's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Desktop Metal alpha.
Desktop Metal Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Desktop Metal can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Desktop Metal Corporate Management
| Prof Schuh | CoFounder | Profile | |
| James Eisenstein | Director | Profile | |
| A Hart | Co-Founder | Profile | |
| Thomas Nogueira | Chief Officer | Profile | |
| Christopher Schuh | Co-Founder | Profile | |
| Steven Papa | Independent Director | Profile | |
| Prof Hart | CoFounder | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Desktop Metal. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. To learn how to invest in Desktop Stock, please use our How to Invest in Desktop Metal guide.You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Is Electronic Equipment, Instruments & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Desktop Metal. If investors know Desktop will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Desktop Metal listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (11.15) | Revenue Per Share 5.117 | Quarterly Revenue Growth (0.15) | Return On Assets (0.24) | Return On Equity (1.53) |
The market value of Desktop Metal is measured differently than its book value, which is the value of Desktop that is recorded on the company's balance sheet. Investors also form their own opinion of Desktop Metal's value that differs from its market value or its book value, called intrinsic value, which is Desktop Metal's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Desktop Metal's market value can be influenced by many factors that don't directly affect Desktop Metal's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Desktop Metal's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Desktop Metal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Desktop Metal's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.