Stock Analysis

Jeffrey Graves Is The President of 3D Systems Corporation (NYSE:DDD) And They Just Picked Up 3.6% More Shares

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NYSE:DDD
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Investors who take an interest in 3D Systems Corporation (NYSE:DDD) should definitely note that the President, Jeffrey Graves, recently paid US$9.60 per share to buy US$192k worth of the stock. Although the purchase only increased their holding by 3.6%, it is still a solid purchase in our view.

Our analysis indicates that DDD is potentially overvalued!

The Last 12 Months Of Insider Transactions At 3D Systems

Notably, that recent purchase by President Jeffrey Graves was not the only time they traded 3D Systems shares this year. They previously made a sale of -US$603k worth of shares at a price of US$14.76 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$10.14). So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 40.14k shares for US$405k. On the other hand they divested 123.86k shares, for US$1.7m. Over the last year we saw more insider selling of 3D Systems shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:DDD Insider Trading Volume December 1st 2022

I will like 3D Systems better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does 3D Systems Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that 3D Systems insiders own 2.7% of the company, worth about US$36m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The 3D Systems Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. We don't take much heart from transactions by 3D Systems insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. Overall they seem reasonably aligned. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing 3D Systems. In terms of investment risks, we've identified 2 warning signs with 3D Systems and understanding them should be part of your investment process.

Of course 3D Systems may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

What are the risks and opportunities for 3D Systems?

3D Systems Corporation, through its subsidiaries, provides 3D printing and digital manufacturing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

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Risks

  • Shareholders have been diluted in the past year

  • Currently unprofitable and not forecast to become profitable over the next 3 years

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