Nano Dimension (NASDAQ: NNDM) is an Israeli-based company that manufactures and provides additive electronics in the tech sector. NNDM has made a name for itself as one of the leading and innovative Isreali-based companies with a renowned reputation in aeronautics, health care and manufacturing. Its 3D printing technology for electronics targets a growing demand for a range of electronic devices that require sophisticated features and rely on encapsulated sensors, antennas and printed multilayer circuit boards in a number of locations.
With its 3D printing technology for electronics, the company tends to target demand for electronics in the auto sector, which rely on printed circuit boards (PCBs). Essentially, PCBs can make electronic equipment become smaller over time, and the company’s PCB jet printer system is used for multilayer circuit boards at home or the office.
The company is used across a range of industries in the U.S. and Israel, including nano components servicing. It uses a mix of software and hardware and has developed unique capabilities in nanochemistry research and development (R&D). It provides prototyping and custom manufacturing projects.
NNDM has experienced huge swings in its share price even as its prospects are supported by the diverse nature of its products and services to consumer electronics, telecoms, Internet of Things (IOT) and medical services. This article looks at its share price in greater detail and seeks to disentangle its use cases from the marketability of its findings.
NNDM Stock Price
NNDM has fallen from a record high share price in January 2020, which ranged between $15 to $16 per share. In the last week, the stock has seen some positive momentum, with the stock gaining 2.90% on Thursday, rising from $5.52 to $5.68. It has been a fairly good week for NNDM stock; its stock price has risen in the last 4 days of the week. Of course, it remains to be seen if it can maintain its uptrend, but a mix of structural factors and sector news may drive the price of the stock in the coming sessions.
It is, however, important to note that the stock has fluctuated between 4.93% from a low of $5.58 to a high of $5.85. Bear in mind that the stock has traded in a fairly narrow range in the last 2 months, so these outcomes should be interpreted as the absence of momentum in any direction. NNDM is down by 9.27% even as its stock price has risen in the last 10 days on average. Volumes have increased in the last 4 days, which is generally a positive sign. In total, 6 million shares were bought and sold for $32.27 million with 1 million shares trading on Wednesday alone.
There is plenty to be said about its competition, which is performing better driven by a mix of strong fundamentals and large cash buffers. The acquisition of DeepCube, an AI company, on April 20, 2021, was a form of vertical integration that will enable NNDM to provide more tailored services to its customers. However, its competitor Sanmina (NASDAQ: SANM) has a beta of 1.14, which indicates that its stock is 14 times more volatile than the S&P 500. Sanmina has a net margin of 3.8% compared to Nano’s net margin of -1,515.03%, which equates to a return on equity of 14.46%.
NNDM Stock Forecast
NNDM is in the middle of a long-term and wide-falling trend in the short term. Most indicators suggest that the stock has some room to go, and recent outcomes illustrate that the stock could fall by single-to-double digits over the next 3 months. The moving averages suggest that Nano could see a further 14% correction, with a greater probability of holding in the lower end of the bearish channel of $4.12 and $5.20 in the coming 3 months. This forecast is based on a mix of fundamental indicators such as weak earnings per share and negative net income. Competitors such as Nippon Seiki Co (TYO: 7287) had 2020 revenues of approximately 4 trillion Japanese yen, lower than the 4.04 trillion yen in the previous fiscal year. NNDM will need to show 2 positive quarters of revenue growth and a meaningful spillover from its new partnerships with defense companies to return some market optimism.
NNDM Stock News
In the last 6 months, NNDM raised about $1.5 billion and made new acquisitions that will enable it to develop superior technology and put the capital to work. A key event to watch will be its next earnings report for the fiscal year 2021, which should provide a more comprehensive view of its financial situation as well as its earnings per share. Don’t forget to add NNDM to your watch list and see how it performs in the coming months.
How to Buy Nano Dimension Stock
If you want to buy NNDM, use limit orders from a licensed broker. This strategy could enable you to make purchases contingent on future revenue potential and its earnings call. It is important to ensure that your exposure is balanced by looking at how competitors' stocks behave while ensuring that your strategy is aligned to your investment goals.
Best Online Stock Brokers for NNDM Stock
The table below provides a summary of stock brokers that enable you to buy, sell and trade NNDM.
NNDM on Benzinga Pro
Screenshot taken from Benzinga Pro on 8-10-2021
The above chart is evidence that NNDM is experiencing a bearish trend with limited buy signals. The moving average indicator suggests that the stock still has further to go, and any gains will meet resistance at about $5.75. Volumes have generally increased in the last week, but this increase has not provided sufficient support for the stock. Trend analysis suggests further downside for the stock. Since September 2021, NNDM has slumped by over 12.07%, finding a new bottom pivot.
The 3-month Moving Average Convergence (MACD) points to a bearish short term trend. Even so, a bullish pattern above $6 could see it near the $8 if the right mix of factors present themselves. New products and partnerships could see its share price gain further credibility, while a recovery in its revenues and earnings per share could underpin a range trading in a consolidated bullish pattern.
Tough Times for NNDM
NNDM has acquired a new company to improve its product offering, but its revenues have been falling and its earnings per share are unknown. In its new bearish trend, it will likely remain under pressure in the absence of stronger revenues. Faster research-to-market processes would help increase its footprint across a number of industries and sectors.
Frequently Asked Questions
Does NNDM have to disclose its outstanding shares?
This Israeli-based company is not required to disclose or file a Q-10 each quarter. However, an American company has to fully disclose its outstanding shares to the public, which should be present on its balance sheet.
Why does NNDM use 3D printing instead of traditional manufacturing?
By using 3D printing to create and manufacture PCBs, designers are able to go well beyond the traditional geometries that are found in PCB designing tools. In essence, it enables greater control in the design process, and what has been termed impedance control determines the effectiveness of the manufacturing process.
Additive manufacturing meets several design challenges in the aviation industry, and the level of precision afforded by Nano Dimension means it is able to print complex and professional sensors and antennas.Not only are these packed with functionality, they enable the company to create customizable parts.