It is Poised to be a Bull Market for Desktop Metal Inc. (DM)

Desktop Metal Inc. (NYSE: DM) stock fell -4.89% on Wednesday to $1.75 against a previous-day closing price of $1.84. With 4.75 million shares changed hands, the volume of the stock remained heavier than its average volume of 4.18 million shares. During the session, the Computer Hardware company that operates in wider Technology sector, reached to the highest price of $1.8200 whereas the lowest price it dropped to was $1.7200. The 52-week range on DM shows that it touched its highest point at $3.65 and its lowest point at $1.13 during that stretch. It currently has a 1-year price target of $2.50. Beta for the stock currently stands at 0.66.

Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DM was down-trending over the past week, with a drop of -1.13%, but this was down by -19.35% over a month. Three-month performance surged to 8.02% while six-month performance fell -13.79%. The stock lost -14.63% in the past year, while it has gained 28.68% so far this year. A look at the trailing 12-month EPS for DM yields -2.29 with Next year EPS estimates of -0.09. For the next quarter, that number is -0.06. This implies an EPS growth rate of -155.20% for this year and 60.00% for next year.

Float and Shares Shorts:

At present, 319.10 million DM shares are outstanding with a float of 283.70 million shares on hand for trading. On Apr 27, 2023, short shares totaled 74.52 million, which was 23.23% higher than short shares on Mar 30, 2023. In addition to Mr. Ric Fulop as the firm’s Co-Founder & CEO, Mr. Jonah Myerberg serves as its Co-Founder, CTO & Sr. VP of Global Engineering.

Institutional Ownership:

Through their ownership of 49.12% of DM’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 22.25% of DM, in contrast to 19.75% held by mutual funds. Shares owned by individuals account for 17.29%. As the largest shareholder in DM with 6.92% of the stake, The Vanguard Group, Inc. holds 22,047,075 shares worth 22,047,075. A second-largest stockholder of DM, BlackRock Fund Advisors, holds 16,945,129 shares, controlling over 5.32% of the firm’s shares. Koch Industries, Inc. is the third largest shareholder in DM, holding 9,384,282 shares or 2.94% stake. With a 2.31% stake in DM, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 7,350,559 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 1.96% of DM stock, is the second-largest Mutual Fund holder. It holds 6,232,005 shares valued at 13.71 million. Janus Henderson Triton Fund holds 1.95% of the stake in DM, owning 6,227,980 shares worth 13.7 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, DM reported revenue of $57.67M and operating income of -$63.07M. The EBITDA in the recently reported quarter was -$50.35M and diluted EPS was -$0.95.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DM since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With DM analysts setting a high price target of $2.00 and a low target of $1.60, the average target price over the next 12 months is $1.88. Based on these targets, DM could surge 14.29% to reach the target high and fall by -8.57% to reach the target low. Reaching the average price target will result in a growth of 7.43% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.