Why Stratasys Is Getting Destroyed
Joel Elconin is the co-host of Benzinga's PreMarket Prep, a daily trading idea radio show.
Stratasys, Ltd. (NASDAQ: SSYS) shares are trading lower by $27.00 at $53.08 in Tuesday's session. The issue is under severe selling pressure after issuing weak guidance for 2015. The company is now forecasting EPS of between $2.07 and $2.24 on sales of $940 million to $960 million.
The Street had expected $2.89 in EPS with sales over $1 billion.
The issue, which until this week had navigated its way through the carnage in the sector, has now lost over half its value since it peaked in January at $138.10. The sharp sell-off has now erased all of its gains since September 2012, when the issued bottomed at $53.53.
Opportunistic traders and investors that were leaning on its pre-market low ($56.90) were in trouble off the opening bell. After a brief pop off the open to $57.17, it fell to $52.14 and rallied back before finding minor intraday resistance at $54.21.
Shares have since fallen below the $53 level.
Image credit: Subhashish Panigrahi, Wikimedia
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