Desktop Metal Inc. (DM): A Technical View

As of Thursday close, Desktop Metal Inc.’s (NYSE:DM) stock was up $0.08, moving up 3.42 percent to $2.42. The average number of shares traded per day over the past five days has been 3,834,320 shares. 5 times new highs have been achieved over the past 5 days, with a $0.28 gain in that time frame. In the last twenty days, the average volume was 4,753,280, while in the previous 50 days, it was 6,209,158.

Since last month, DM stock rose 12.56%. Shares of the company fell to $1.97 on 07/05/22, the lowest level in the past month. A 52-week high of $9.82 was reached on 01/04/22 after having rallying from a 52-week low of $1.26. Since the beginning of this year, DM’s stock price has dropped by -51.11% or -$2.53, and marked a new high 2 times. However, the stock has declined by -75.36% since its 52-week high.

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Desktop Metal Inc. (DM) last reported insider trading activity 142 days ago on Mar 16. Fulop Ric, the CHIEF EXECUTIVE OFFICER of the company, purchased of 128,850 shares for $4.08 on Mar 16. It resulted in a $525,231 investment by the insider. Hindery Leo J. Jr. sold 300,000 shares at an average price of $5.06 on Dec 27. The insider now owns 2,597,317 shares following the transaction.

Valuation Metrics

The latest dividend of $0.3690 per share was paid out, remained unchanged from last year’s $0.3690.

Financial Health

In the three months ended March 30, Desktop Metal Inc.’s quick ratio stood at 2.60, while its current ratio was 3.40, showing that the company is able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 12.10% percent. Based on annual data, DM earned $18.29 million in gross profit and brought in $112.41 million in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -13.70%. Return on equity (ROE) for the past 12 months was -23.50%.

In Desktop Metal Inc.’s quarter-end financial report for March 30, it reported total debt of $0.52 million against cash and short-term investments of $102.9 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. DM’s revenue rose 74.12% to $56.68 million during the quarter, while net income inched up to $43.71 million. While analysts expected Desktop Metal Inc. to report -$0.13 quarterly earnings, the actual figure was -$0.14 per share, beating the consensus estimate by -7.70%. During the quarter, the company generated -$56.18 million in EBITDA. The liabilities of Desktop Metal Inc. were 143.97 million at the end of its most recent quarter ended March 30, and its total debt was $26.44 million. The value of shareholders’ equity is $313.46 million.

Technical Picture

This quick technical analysis looks at Desktop Metal Inc.’s (DM) price momentum. With a historical volatility rate of 74.05%, the RSI 9-day stood at 58.54% on 04 August.

With respect to its five-day moving average, the current Desktop Metal Inc. price is up by +13.08% percent or $0.28. At present, DM shares trade +1.68% above its 20-day simple moving average and -39.50% percent below its 100-day simple moving average. However, the stock is currently trading approximately +18.05% above its SMA50 and -64.93% below its SMA200.

Stochastic coefficient K was 45.89% and Stochastic coefficient D was 33.17%, while ATR was 0.17. Given the Stochastic reading of 57.97% for the 14-day period, the RSI (14) reading has been calculated as 54.19%. As of today, the MACD Oscillator reading stands at 0.12, while the 14-day reading stands at 0.01.

Analyst Ratings

Lake Street upgraded its rating on Desktop Metal Inc. (NYSE: DM) to a Buy in a note to investors on January 10, 2022. The analysts firm previously had a Hold rating on the stock.Desktop Metal Inc. (DM) has been rated Overweight by analysts. According to 0 brokerage firms, DM is a sell, and 2 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Desktop Metal Inc. stock as buy, with 2 recommending it as overweight.

With a median target price of $4.25, the current consensus forecast for the stock is $2.00 – $7.00. Based on these forecasts, analysts predict Desktop Metal Inc. (DM) will achieve an average price target of $4.38.


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