Proto Labs (NYSE:PRLB) Shares Down 7.1% - Here's Why

Key Points

• Proto Labs shares fell 7.1% to about $84.50 on Thursday, with trading volume 32% below its average; the stock was reported as down 12.6% over the referenced period.
• Analyst sentiment remains generally positive: four analysts rate the stock a Buy and one a Hold, producing a “Moderate Buy” consensus and an average price target of $100.50.
• The company exceeded quarterly expectations, reporting $0.63 in EPS versus $0.60 expected and $154.32 million in revenue versus $149.31 million expected; revenue grew 13.7% year over year.

Proto Labs, Inc. (NYSE:PRLB - Get Free Report) shares were down 7.1% on Thursday. The company traded as low as $83.27 and last traded at $84.4980. Approximately 134,645 shares were traded during trading, a decline of 32% from the average daily volume of 198,430 shares. The stock had previously closed at $90.91.

Analyst Upgrades and Downgrades

Several brokerages have commented on PRLB. Benchmark raised their price objective on Proto Labs from $70.00 to $91.00 and gave the company a "buy" rating in a research report on Thursday, July 2nd. Cantor Fitzgerald reiterated an "overweight" rating on shares of Proto Labs in a research report on Tuesday. Needham & Company LLC upped their price target on shares of Proto Labs from $87.00 to $110.00 and gave the stock a "buy" rating in a research report on Friday, October 23rd. Zacks Research downgraded Proto Labs from a "strong-buy" rating to a "hold" rating in a research report on Friday, October 2nd. Finally, Wall Street Zen downgraded shares of Proto Labs from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 18th. Four research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $100.50.

Proto Labs Trading Down 12.6%

The firm has a market cap of $1.90 billion, a PE ratio of 63.91 and a beta of 1.38. The business's 50-day simple moving average is $86.56 and its 200 day simple moving average is $72.89.

Proto Labs (NYSE:PRLB - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The industrial products company reported $0.63 EPS for the quarter, beating analysts' consensus estimates of $0.60 by $0.03. Proto Labs had a return on equity of 4.80% and a net margin of 5.44%. The company had revenue of $154.32 million during the quarter, compared to analysts' expectations of $149.31 million. During the same period last year, the business posted $0.47 earnings per share. The firm's revenue was up 13.7% compared to the same quarter last year. Analysts expect that Proto Labs, Inc. will post 1.46 earnings per share for the current year.

Insider Activity

In related news, CFO Daniel Schumacher sold 5,000 shares of the business's stock in a transaction on Thursday, September 24th. The shares were sold at an average price of $95.32, for a total transaction of $476,600.00. Following the completion of the transaction, the chief financial officer directly owned 35,019 shares in the company, valued at $3,338,011.08. The trade was a 12.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 10,000 shares of company stock worth $902,629 over the last three months. Company insiders own 1.30% of the company's stock.

Hedge Funds Weigh In On Proto Labs

A number of institutional investors have recently modified their holdings of PRLB. Balance Wealth Partners LLC acquired a new stake in Proto Labs in the 3rd quarter valued at about $36,000. Public Employees Retirement System of Ohio acquired a new stake in shares of Proto Labs during the 2nd quarter worth approximately $37,000. Fortitude Family Office LLC acquired a new stake in shares of Proto Labs during the third quarter valued at about $40,000. Signaturefd LLC boosted its stake in shares of Proto Labs by 240.0% in the third quarter. Signaturefd LLC now owns 527 shares of the industrial products company's stock valued at $50,000 after purchasing an additional 372 shares during the period. Finally, USA Financial Formulas acquired a new position in Proto Labs during the 1st quarter worth $52,000. Hedge funds and other institutional investors own 84.54% of the company's stock.

Proto Labs Company Profile

Proto Labs, Inc NYSE: PRLB, operating as Protolabs, is a digital manufacturing company that provides rapid prototyping and on-demand production services. The company uses automated quoting and manufacturing systems to help engineers and product developers produce custom parts without relying on traditional, lengthy tooling and procurement processes.

Protolabs offers computer numerical control (CNC) machining, injection molding, 3D printing and sheet-metal fabrication. Its services support the development and production of components in a range of materials and are used across industries including automotive, aerospace, medical, electronics and consumer products.

Founded in 1999 by entrepreneur Larry Lukis, the company has expanded its reach beyond its original U.S.

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