Desktop Stock Buy Hold or Sell Recommendation

DM
 Stock
  

USD 1.98  0.04  2.06%   

Allowing for the 90-day total investment horizon and your way above-average risk tolerance, our recommendation regarding Desktop Metal is 'Strong Sell'. Macroaxis provides Desktop Metal buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding DM positions. The advice algorithm takes into account all of Desktop Metal's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Desktop Metal's buy-and-hold perspective. Continue to Desktop Metal Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Desktop and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Desktop Metal.

Execute Desktop Metal Buy or Sell Advice

The Desktop recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Desktop Metal. Macroaxis does not own or have any residual interests in Desktop Metal or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Desktop Metal's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Desktop MetalBuy Desktop Metal
Strong Sell

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Reporting Quality (M-Score)

Details
For the selected time horizon Desktop Metal has a Mean Deviation of 3.92, Standard Deviation of 5.08 and Variance of 25.76
We provide trade advice to complement the prevailing expert consensus on Desktop Metal. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Desktop Metal is not overpriced, please confirm all Desktop Metal fundamentals, including its current ratio, beta, and the relationship between the cash and equivalents and earnings per share . Please also check Desktop Metal number of shares shorted to verify your buy or sell decision is consistent with all fundamental data available and that the company can sustain itself in the current economic cycle.

Desktop Metal Trading Alerts and Improvement Suggestions

Desktop Metal generated a negative expected return over the last 90 days
Desktop Metal has high historical volatility and very poor performance
Desktop Metal may become a speculative penny stock
The company generated the yearly revenue of 112.41 M. Annual Net Loss to common stockholders was (240.33 M) with gross profit of 20.49 M.
Desktop Metal reports about 65.02 M in cash with (155.05 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.81.

Desktop Metal Returns Distribution Density

The distribution of Desktop Metal's historical returns is an attempt to chart the uncertainty of Desktop Metal's future price movements. The chart of the probability distribution of Desktop Metal stock daily returns describes the distribution of returns around its average expected value. We use Desktop Metal price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Desktop Metal returns is essential to provide solid investment advice for Desktop Metal.
Mean Return-0.62Value At Risk-8.37
Potential Upside7.86Standard Deviation5.08
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Desktop Metal historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Desktop Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Desktop Metal is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Desktop Metal backward and forwards among themselves. Desktop Metal's institutional investor refers to the entity that pools money to purchase Desktop Metal's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Zurcher Kantonalbank Zurich CantonalbankCommon Shares26.5 K69 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares26.5 K58 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares26.5 K126 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares26.5 K131 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares10.8 K77 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares10.8 K124 K
Zevenbergen Capital Investments LlcCommon Shares1.2 M14.2 M
Yakira Capital Management IncWarrants62.7 K302 K
Xr Securities LlcPut Options8.4 K307 K
Note, although Desktop Metal's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Desktop Metal Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Desktop Metal or Computer Hardware sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Desktop Metal's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Desktop stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.79
β
Beta against NYSE Composite1.70
σ
Overall volatility
5.14
Ir
Information ratio -0.14

Desktop Metal Volatility Alert

Desktop Metal exhibits very low volatility with skewness of 0.21 and kurtosis of 0.33. However, we advise investors to further study Desktop Metal technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Desktop Metal's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Desktop Metal's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Desktop Metal Fundamentals Vs Peers

Comparing Desktop Metal's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Desktop Metal's direct or indirect competition across all of the common fundamentals between Desktop Metal and the related equities. This way, we can detect undervalued stocks with similar characteristics as Desktop Metal or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Desktop Metal's fundamental indicators could also be used in its relative valuation, which is a method of valuing Desktop Metal by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Desktop Metal to competition
FundamentalsDesktop MetalPeer Average
Return On Equity(0.59) %(0.31) %
Return On Asset(0.13) %(0.14) %
Profit Margin(2.43) %(1.27) %
Operating Margin(1.06) %(5.51) %
Current Valuation551.38 M16.62 B
Shares Outstanding317.58 M571.82 M
Shares Owned by Insiders10.66 %10.09 %
Shares Owned by Institutions49.00 %39.21 %
Number of Shares Shorted59.49 M4.71 M
Price to Book0.78 X9.51 X
Price to Sales3.00 X11.42 X
Revenue112.41 M9.43 B
Gross Profit20.49 M27.38 B
EBITDA(233.18 M)3.9 B
Net Income(240.33 M)570.98 M
Cash and Equivalents65.02 M2.7 B
Cash per Share0.81 X5.01 X
Total Debt548 K5.32 B
Debt to Equity0.15 %48.70 %
Current Ratio4.32 X2.16 X
Book Value Per Share2.54 X1.93 K
Cash Flow from Operations(155.05 M)971.22 M
Short Ratio15.75 X4.00 X
Earnings Per Share(0.90) X3.12 X
Price to Earnings To Growth(0.14) X4.89 X
Target Price3.21
Number of Employees1.37 K18.84 K
Beta0.35-0.15
Market Capitalization616.1 M19.03 B
Total Asset1.39 B29.47 B
Working Capital35.8 M1.48 B
Current Asset95.8 M9.34 B
Current Liabilities60 M7.9 B
   Payment of 547 shares by Thomas Nogueira of Desktop Metal subject to Rule 16b-3 [view details]

About Desktop Metal Buy or Sell Advice

When is the right time to buy or sell Desktop Metal? Buying financial instruments such as Desktop Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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Israel Wall Street Theme
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Continue to Desktop Metal Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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Is Desktop Metal's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Desktop Metal. If investors know Desktop will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Desktop Metal listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
616.1 M
Quarterly Revenue Growth YOY
0.85
Return On Assets
(0.13) 
Return On Equity
(0.59) 
The market value of Desktop Metal is measured differently than its book value, which is the value of Desktop that is recorded on the company's balance sheet. Investors also form their own opinion of Desktop Metal's value that differs from its market value or its book value, called intrinsic value, which is Desktop Metal's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Desktop Metal's market value can be influenced by many factors that don't directly affect Desktop Metal's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Desktop Metal's value and its price as these two are different measures arrived at by different means. Investors typically determine Desktop Metal value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Desktop Metal's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.