3D Systems (NYSE: DDD), a technology company focused on manufacturing 3D devices, recently revealed that it has entered into a Joint Venture with the Saudi Arabian Industrial Investments Company, also known as Dussur, to expand the use of additive manufacturing in Saudi Arabia.
As per the agreement, a new facility will be opened for this purpose. The facility, which is expected to be operational in late 2022, will demonstrate plastic and metal 3D printing capabilities, supervised by experienced 3D Systems application engineers.
The move is in sync with Saudi Arabia’s vision of diversification of the economy and long-term sustainability by 2030. To that end, 3D Systems’ expertise in developing additive technology as well as application prowess led to its selection as the preferred partner.
Following the news, shares of the company gained marginally to close at $17.60 in Tuesday’s extended trading session, after rising over 8% during the day.
Management Commentary
The CEO of 3D Systems, Dr. Jeffery Graves, said, “Our partnership with Dussur will accelerate the adoption of additive manufacturing in the region, enabling diversification of the Saudi Arabian economy. We are excited about the partnership and believe it will provide a strong foundation within the Kingdom to expand local engineering and manufacturing and encourage green energy sources.”
Stock Rating
Consensus among analysts is a Hold based on one Buy, four Holds and two Sells. The 3D Systems average price target of $21.50 implies upside potential of 22.4% from current levels. Shares have declined 32.7% over the past year.
Insider Trading Activity
TipRanks’ Insider Trading Activity tool shows that confidence in 3D Systems is currently Very Negative based on informative transactions by five insiders over the past three months. Corporate Insiders have sold shares worth $1.3 million over this period.
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