In this article, we will be looking at some 3D printing stocks bought by hedge funds. If you want to skip our comprehensive analysis on the 3D printing industry, you can go directly to the 5 3D Printing Stocks Hedge Funds Like.
3D Printing or Additive Manufacturing is the process of creating a three-dimensional object through a computer-aided design (CAD) Model. It is basically used to design and consolidate any material through computer control. The idea of 3D printing has been around since the 1940s, but proper additive manufacturing equipment and tools had not been developed till the ’80s. However, even at that time, the technology was merely rapid-prototyping. With the advancement in technology especially after the 2010s the 3D printing industry is rapidly taking over the world and it has become eminent among investors. These days 3D printing is being used in food, fashion, health, transportation, firearms, and many other industries.
Applications of 3D Printing
Why is 3D printing getting so much hype in the modern world? Because it has the potential to replace the processes of casting, stamping, molding, and machining which is collectively a $12 trillion industry. According to McKinsey & Company, 3D printing is “ready to emerge from its niche status and become a viable alternative to conventional manufacturing processes in an increasing number of applications.”
3D printing has revolutionized healthcare by giving us the ability to print organs, cells, skin and other body parts without the fear of rejection by the body like it happens with donated body parts. The aerospace industry can use 3D printing to create the parts they need with utmost precision and timeliness. On top of that, the manufacturing speed of products has been reduced to a minimum, all thanks to the technology of additive manufacturing. These days fused filament fabrication is the most commonly used process of 3D printing. The process uses a continuous filament of a thermoplastic material.
With all this in mind, it is safe to say that the 3D printing industry is getting harder to ignore each day by investors. Companies like ANSYS, Inc. (NASDAQ:ANSS), Autodesk, Inc. (NASDAQ:ADSK), and HP Inc. (NYSE:HPQ) are slowly becoming the companies of choice for investors for long-term financial growth.
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Our Methodology
We analyzed our data of 867 elite hedge funds and picked the 3D printing stocks most popular among these funds as of the end of the third quarter.
9 3D Printing Stocks Hedge Funds Like
9. Materialise N.V (NASDAQ:MTLS)
Number of Hedge Funds: 9
Materialise N.V (NASDAQ:MTLS) is a Belgian 3D printing company. It was founded in 1990 in Leuven, Belgium, with only a single stereolithography machine.
Materialise had increased its 2021 targets twice. The company has two important software platforms: Magics and Mimics. The company also produces personalized medical devices and personalized footwear (insoles). It is also operating in the growth market of unique eyewear solutions.
Cathie Wood’s ARK holds the highest position in Materialise N.V (NASDAQ:MTLS) with 5.59 million shares worth $112.4 million.
8. FARO Technologies (NASDAQ:FARO)
Number of Hedge Funds: 9
FARO Technologies (NASDAQ:FARO) is a 3D imaging company that mainly focuses on 3D measurement, imaging, and realization solutions. The company was founded in 1981 and is headquartered in Florida.
On October 7, Needham analyst James Ricchiuti upgraded FARO Technologies (NASDAQ:FARO) shares from Hold to Buy and kept a $77 price target. The analyst is confident in the management’s abilities to “transform” operations. The analyst also provided a positive outlook on the company as he believes that the company’s decision to outsource all of its 3D metrology and scanning products manufacturing will begin paying off in 2022.
At the end of the third quarter of 2021, Chuck Royce’s Royce and Associates held the most valuable stake in FARO Technologies (NASDAQ:FARO) with around 1.1 million shares worth $72.155 million. The second position was held by Paradice Investment Management, followed by ARK Investment Management.
7. Nano Dimension Ltd. (NASDAQ:NNDM)
Number of Hedge Funds: 10
Nano Dimension Ltd. (NASDAQ:NNDM) is an Israel-based company that, together with its subsidiaries, develops additively manufactured electronics. The company was founded in 2012 and has around 90 full-time employees.
The company has about $1.4 billion in cash on hand. The company’s flagship product, DragonFly lights-out digital manufacturing (LDM) system, produces professional multilayer circuit boards, radio frequency antennas, sensors, conductive geometries, and molded connected devices for prototyping through custom additive manufacturing. The stock looks undervalued, and the company has been increasing its hold in the industry through acquiring companies such as Essemtec AG and DeepCube.
The company’s revenue is projected to grow at an over 100% rate over 2022.
6. Proto Labs, Inc. (NYSE:PRLB)
Number of Hedge Funds: 17
Proto Labs, Inc. (NYSE:PRLB) is an American prototyping and short-run production company. In January 2021, the company announced to acquire 3D Hubs, an Amsterdam-based manufacturing company, for $280 million.
In December 2021, Protolabs (NYSE:PRLB) board approved a $50 million increase in its authorized stock repurchase program with an expiration date of Dec.31, 2023. With this, the stock repurchase program is now increased to $150 million.
Harding Loevner mentioned Proto Labs, Inc. (NYSE:PRLB) in their first-quarter 2021 investor letter. Here is what it said:
“Shares of Protolabs, a provider of 3D printing and other rapid prototyping and mold machining services for manufacturing, extended their strong performance from last year and soared early in January after the company announced its intention to acquire another on-demand digital manufacturing platform. We took advantage of their runup to sell our position.”
Click to continue reading and see 5 3D Printing Stocks Hedge Funds Like.
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Disclosure: None. 9 3D Printing Stocks Hedge Funds Like is originally published on Insider Monkey.
