Stratasys soars 20% on premium equity investment, strong Q4 earnings outlook

Stratasys

03/02/2025 16:51

(Updates, includes preliminary Q4 results)
** Shares of 3D printer co Stratasys  SSYS.O  up 20.6% on Mon to
$11.23, about a 10-month high, after announcing equity
investment from existing holder and preliminary Q4 results 
** SSYS on Sun said Israeli PE firm Fortissimo Capitalto invest
$120 mln via direct purchase of ~11.7 mln newly issued shares
** Purchase price of $10.30 represents 10.6% premium to last
close of SSYS shares on Fri
** With this investment, Fortissimo boosting its holdings from
~1.5% to ~15.5% of SSYS's total shares outstanding
** In connection with the investment, Yuval Cohen, Fortissimo
managing partner, to be appointed to board of SSYS, replacing a
current director
    ** SSYS also said  Q4 adj net income of $8.1-$8.6 mln vs
LSEG estimate of $8.1 mln. Anticipated rev in qtr of
$150.1-$150.5 mln slightly below consensus view of $150.6 mln
  
    ** SSYS has ~71.39 mln shares outstanding for roughly $800
mln market cap - LSEG
  
    ** About 2.6 mln SSYS shares have traded on Mon, nearly 6x
the 10-DMA volume
  
    ** With move on Mon, shares up  ~26% YTD following ~38%
decline in 2024
  
    ** Separately, shares of peer 3D Systems  DDD.N  up ~6% on
the session, possibly in sympathy with SSYS
  
    ** Both stocks bucking the trend on Mon as Wall Street's
main indexes slide on Trump tariff jitters  .N 
  

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))