What Happened?
Shares of 3D printing company 3D Systems (NYSE: DDD) fell 20.5% in the morning session after the company announced plans to offer $92 million in Convertible Senior Notes to qualified institutional buyers.
The stock was likely down due to concerns about the dilutive effect of the notes, which can be converted to the company's ordinary stock, raising the total share count.
Also, the notes have a conversion price of approximately $2.24 per share, which represents a premium of roughly 20% over 3D Systems' last trading price of $1.87 per share on June 17, 2025.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy 3D Systems? Access our full analysis report here, it’s free.
What The Market Is Telling Us
3D Systems’s shares are extremely volatile and have had 77 moves greater than 5% over the last year. But moves this big are rare even for 3D Systems and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 28 days ago when the stock dropped 5.5% after the major indices fell further in the afternoon (Nasdaq -1.3%, S&P 500 - 1.4%) as Treasury yields rose, reflecting market anxiety over a draft federal budget that could worsen the already wide US fiscal deficit.
A poor auction for 20-year U.S. Treasury bonds further raised concerns, as weak demand implies investors are becoming more cautious about holding long-dated U.S. debt.
As a reminder, the driver of a stock's value is the sum of its future cash flows discounted back to today. With lower interest rates (yields), investors can apply higher valuations to their stocks; when yields rise, that math works in reverse.
Adding to the cautious mood were earnings results from retail giants Target and Lowe's, both of which reported weak earnings that missed expectations, pointing to a potential slowdown in consumer spending and further weighing on sentiment.
Lastly, some influential voices such as Jamie Dimon (JPMorgan) and Steve Cohen (Point72) made cautious comments about the market, which can sometimes become self-fulfilling prophecies as investors increase their cautiousness and skittishness.
3D Systems is down 52.9% since the beginning of the year, and at $1.51 per share, it is trading 68% below its 52-week high of $4.72 from February 2025. Investors who bought $1,000 worth of 3D Systems’s shares 5 years ago would now be looking at an investment worth $207.25.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
