DM stock touches 52-week low at $2.09 amid market challenges

Published 28/01/2025, 15:52
DM stock touches 52-week low at $2.09 amid market challenges

Desktop Metal Inc. (NYSE:DM) stock has hit a 52-week low, dropping to $2.09, as the company faces a turbulent market environment. Technical indicators from InvestingPro show the stock is in oversold territory, with a current ratio of 2.34 indicating strong short-term liquidity despite market challenges. This latest price level reflects a significant downturn from the previous year, with the stock experiencing a sharp decline of 66.09% over the past year. The company faces challenges with revenue declining ~15% and rapid cash burn, though InvestingPro analysis suggests the stock may be undervalued at current levels. Investors are closely monitoring the company’s performance and market position, as Desktop Metal navigates through the headwinds affecting the broader tech and manufacturing sectors. The 52-week low serves as a critical indicator for shareholders and potential investors, who are assessing the company’s valuation and future prospects in light of recent market trends and financial performance. Discover 14 additional key insights about Desktop Metal with an InvestingPro subscription, including detailed analysis of its financial health and growth prospects.

In other recent news, Desktop Metal, a prominent player in the 3D printing industry, has been preparing for a merger with Nano Dimension (NASDAQ:NNDM). The merger, set to close in the fourth quarter of 2024, is pending regulatory approvals and other customary closing conditions. Investors have been informed about new tax guidelines related to the merger’s anticipated closure, as disclosed in a recent SEC Form 8-K filing.

In a significant development, Desktop Metal shareholders have approved the merger with Nano Dimension, which is expected to strengthen the company’s position in the 3D printing industry. Financially, Desktop Metal reported a decrease in its Q2 2024 revenue to $38.9 million, primarily due to reduced hardware sales, while Nano Dimension reported a 21% increase in third-quarter revenue, reaching $14.7 million.

In addition, Desktop Health, a division of Desktop Metal, announced the qualification of its Flexcera family resins for use with LuxCreo 3D printing systems. This development positions both companies in the dental 3D printing market, which is projected to reach $8.1 billion by 2029.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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