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Velo3D sees $32m market cap gain, major shareholders benefit

EditorHari Govind
Published 15/11/2023, 13:12
© Reuters.
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NEW YORK - Velo3D (NYSE:VLD), a company significantly influenced by private equity firms, witnessed a market capitalization increase of $32 million today, with its top shareholders reaping the benefits. The four leading shareholders, who together hold a majority 54% stake in the company, along with institutions owning another 26%, have seen their investments grow.

This surge in market cap comes amid a broader understanding of the company's ownership structure. Institutional ownership, which is considered to lend credibility to Velo3D, also carries the risk of significant share price volatility. Deer Management Company, LLC is currently the largest shareholder with a 19% stake in the company.

The influence of these major shareholders is further underscored by Velo3D's CEO Benny Buller's ownership of 2.5% of the company's shares. The combined control of the top four shareholders gives them considerable sway over corporate decisions.

Further analysis of the company's shareholder composition reveals that private equity firms command a substantial 48% ownership. Their strategic focus on value creation has the potential to direct the company's future path. Meanwhile, the general public holds a smaller, yet notable, 24% stake in Velo3D.

Despite the positive news on market capitalization, which stands at $272 million, and insiders owning $9.3 million worth of shares, potential investors are advised to consider four warning signs associated with Velo3D. These cautionary points highlight the need for investors to conduct thorough due diligence when considering an investment in the company.

InvestingPro Insights

According to real-time data from InvestingPro, Velo3D's (VLD) Earnings Per Share (EPS) for the last twelve months as of Q1 2023 was $0.45, reflecting a steady growth. The company's Return on Equity (ROE) stood at 15%, indicating a solid return on investments made by shareholders. Furthermore, the company's Debt-to-Equity ratio was 0.35, suggesting a healthy balance between debt and equity financing.

InvestingPro Tips suggest two key points for potential investors. Firstly, the company's steady EPS growth is a positive sign for future profitability. Secondly, a healthy ROE indicates that the company is effectively using the investments made by its shareholders. There are over 20 additional tips available on InvestingPro that can provide more insights into investing in Velo3D.

These insights offer a more comprehensive understanding of Velo3D's financial health and potential for future growth. As always, potential investors are encouraged to conduct their own due diligence, and consider using resources like InvestingPro to gain a deeper understanding of the company's financials.

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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