Semiconductor 3D-printing specialist Nano Dimensions (NASDAQ:NNDM) shares surged by 16.1% in June driven by robust momentum in the broader market, as per data from the S&P Global Market Intelligence. The growth-dependent technology stocks gained after some months of volatile trading even as the Nasdaq Composite index jumped 5.5% in the same month.
Though the company received approval from U.S. Patent and Trademark Office by mid June for its multilayered printed circuit board fabricationusing inkjet printing, this doesn’t have much significance to its stock surge.
In July’s trading session, Nano Dimension’s share price plummeted by 6.6%. Overall, the company’s shares have seen a huge rally of 263% in the last one year while it witnessed completion of new share offerings for funding business operations. Based in Israel, the tech company’s share count has augmented by 450% in one year with market cap rising by 2,600%.
With a market capitalisation of about $2 billion, its valuation is 395 times this year’s expected sales and demonstrates that investors must comprehend that the stock is currently highly speculative and there is little knowledge on how the business will evolve in the next five years
Enterprise customers and research institutions have adopted Nano Dimension’s DragonFly LDM machines while the company also launched a new version of the hardware. The machines permit creation of prototype semiconductors quickly and can result in rapid development of chips and general technologies.
Market Reaction:
On Friday, NNDM stock was down 3.75% at $7.70 with more than 8.53 million shares, compared to its average volume of 16.69 million shares. The stock has moved within a range of $7.67 – 8.12 after opening the trade at $7.96. Over the past 52-week, the stock has been trading within a range of $1.31 – 17.89.
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