You may not have heard of Nano Dimension (NASDAQ:NNDM), or at least heard of it lately, but it just did something that gave its stock price a hefty lift. The 3D printer maker announced plans to stage a massive stock buyback, and it sent shares up over 7.5% in Monday afternoon’s trading.
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The first question to a proposition like that is “how massive?” The answer is “about a third of the company.” The share repurchase program Nano Dimension set up is equivalent to roughly a third of the company’s total market cap, or about $227.5 million. With this buyback plan, Nano Dimension is now authorized to buy American Depository Shares, using either open market transactions or transactions that the company negotiates privately with shareholders. Any other method that isn’t outright crime is also on the table, reports note.
The news comes at an excellent time for Nano Dimension; just last week, it lost 13.6% of its total value after its plan to buy in on Stratasys Ltd (NASDAQ:SSYS) fell through. Nano Dimension pulled its offer, and also revealed it was looking into selling off the 14.1% of Stratasys it already owned. That leaves a pretty safe bet as to where the cash will come from to buy back all of its own shares, and at a decent discount too, given the drubbing it took last week.
In fact, a look at the last five days in trading for Nano Dimension shows, nicely, what’s been going on. Nano Dimension shares were slipping a bit, but still high up, until a sudden downslump hit. The gradual downward path reasserted itself before another pronounced down kicked in, rallied, and carried on. Then, after a modest recovery, shares shot up, slipped, and then mostly recovered. However, shares are still under what they were this time five days ago.
