3D Systems Shares Climb to Record on Takeover Speculation
3D Systems Corp. (DDD) shares climbed to a record amid speculation it could be the next maker of printers that create three-dimensional objects to become a takeover target.
Shares of 3D Systems rose 6 percent to $70.01, the highest close since at least December 1989 and a 23 percent increase from Oct. 28, the day before the company reported third-quarter sales that topped analysts’ estimates. About 9.94 million shares were traded, or more than two-and-a-half times the three-month average.
With 3D Systems’ growing revenue in a nascent industry, the company could attract possible bidders, Angelo Zino, an analyst at S&P Capital IQ, said in a phone interview. “Given the growth potential in this space, would that be a possibility? Absolutely.”
Popularity for 3-D printers has increased among engineers, designers and manufacturers as prices have fallen, making them affordable to more consumers. Other companies in the industry have already started to join forces as they seek to tap rising demand. Stratasys Ltd. (SSYS) agreed in June to buy startup MakerBot Industries LLC for at least $403 million.
3D Systems, based in Rock Hill, South Carolina, last week raised its forecast for full-year revenue to as much as $530 million from a previous projection for a maximum of $510 million. In 2012, revenue was $353.6 million. In the third quarter, 3D Systems reported sales of $135.7 million, topping analysts’ estimates of $132.3 million.
Alyssa Reichental, a spokeswoman for 3D Systems, said the company is “not currently in discussions regarding an acquisition of the company’s shares.”
To contact the editor responsible for this story: Nick Turner at firstname.lastname@example.org