Xometry (NASDAQ:XMTR) Shares Gap Down - Should You Sell?

Key Points

• Xometry shares opened sharply lower, falling from a prior close of $95.49 to $87.80 before recovering slightly; the stock was recently down 1.2%.
• Analysts remain broadly positive, with eight Buy ratings, four Holds and one Sell. The consensus rating is “Moderate Buy,” with an average price target of $113.18, above the recent trading price.
• Xometry reported a quarterly earnings and revenue beat, including $0.28 EPS versus $0.19 expected and $252.44 million in revenue, up 39.5% year over year. However, the company remains unprofitable, with a negative net margin and analysts expecting roughly breakeven full-year EPS.

Shares of Xometry, Inc. (NASDAQ:XMTR - Get Free Report) gapped down prior to trading on Tuesday. The stock had previously closed at $95.49, but opened at $87.80. Xometry shares last traded at $91.6790, with a volume of 147,441 shares changing hands.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on XMTR shares. Raymond James Financial set a $120.00 price target on shares of Xometry in a research report on Tuesday, September 22nd. BNP Paribas Exane initiated coverage on shares of Xometry in a research report on Friday, September 18th. They issued an "outperform" rating and a $120.00 price objective for the company. The Goldman Sachs Group increased their price objective on shares of Xometry from $78.00 to $104.00 and gave the company a "neutral" rating in a research note on Wednesday, August 5th. Royal Bank Of Canada lifted their target price on shares of Xometry from $85.00 to $100.00 and gave the stock a "sector perform" rating in a research report on Wednesday, August 5th. Finally, Wedbush initiated coverage on Xometry in a research note on Thursday, July 16th. They issued an "outperform" rating and a $126.00 target price on the stock. Eight analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Xometry presently has an average rating of "Moderate Buy" and a consensus target price of $113.18.

Xometry Trading Down 1.2%

The company has a quick ratio of 3.20, a current ratio of 3.21 and a debt-to-equity ratio of 0.41. The firm has a market cap of $4.89 billion, a P/E ratio of -157.44 and a beta of 1.23. The firm's 50-day simple moving average is $96.37 and its 200 day simple moving average is $76.22.

Xometry (NASDAQ:XMTR - Get Free Report) last released its earnings results on Tuesday, November 3rd. The company reported $0.28 earnings per share for the quarter, beating analysts' consensus estimates of $0.19 by $0.09. Xometry had a negative net margin of 3.82% and a negative return on equity of 2.88%. The firm had revenue of $252.44 million during the quarter, compared to the consensus estimate of $235.54 million. During the same period in the prior year, the firm earned $0.11 EPS. The company's revenue was up 39.5% compared to the same quarter last year. As a group, analysts expect that Xometry, Inc. will post -0.01 earnings per share for the current year.

Insider Transactions at Xometry

In other Xometry news, Director Randolph Altschuler sold 5,721 shares of the business's stock in a transaction on Friday, October 2nd. The stock was sold at an average price of $103.32, for a total value of $591,093.72. Following the sale, the director directly owned 423,029 shares in the company, valued at $43,707,356.28. The trade was a 1.33% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Vaidyanathan Raghavan sold 1,866 shares of the company's stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $103.28, for a total value of $192,720.48. Following the transaction, the chief technology officer directly owned 133,911 shares in the company, valued at $13,830,328.08. This represents a 1.37% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 64,699 shares of company stock valued at $6,169,735. Corporate insiders own 9.10% of the company's stock.

Institutional Investors Weigh In On Xometry

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Allspring Global Investments Holdings LLC lifted its holdings in Xometry by 243.6% during the first quarter. Allspring Global Investments Holdings LLC now owns 694,390 shares of the company's stock valued at $29,015,000 after purchasing an additional 492,285 shares during the last quarter. Wellington Management Group LLP boosted its holdings in Xometry by 26.9% in the 2nd quarter. Wellington Management Group LLP now owns 1,322,581 shares of the company's stock worth $127,656,000 after buying an additional 280,491 shares during the period. Zevenbergen Capital Investments LLC raised its holdings in Xometry by 115.1% during the 3rd quarter. Zevenbergen Capital Investments LLC now owns 297,552 shares of the company's stock valued at $30,603,000 after acquiring an additional 159,227 shares during the period. Sylebra Capital LLC lifted its position in shares of Xometry by 31.3% during the first quarter. Sylebra Capital LLC now owns 535,624 shares of the company's stock worth $21,875,000 after acquiring an additional 127,637 shares in the last quarter. Finally, Sei Investments Co. boosted its holdings in shares of Xometry by 45.6% in the first quarter. Sei Investments Co. now owns 274,641 shares of the company's stock worth $11,216,000 after acquiring an additional 85,989 shares during the period. 97.31% of the stock is currently owned by institutional investors.

Xometry Company Profile

Xometry, Inc NASDAQ: XMTR operates a technology-driven marketplace that connects businesses seeking custom parts with a network of manufacturing suppliers. Its platform uses automated pricing, manufacturability analysis and digital workflows to help customers source parts and manage production more efficiently.

The company supports a range of manufacturing processes, including CNC machining, 3D printing, sheet metal fabrication, injection molding, urethane casting and other specialized production services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.