Traders Purchase Large Volume of Desktop Metal Call Options (NYSE:DM)

Desktop Metal, Inc. (NYSE:DM) was the target of some unusual options trading activity on Tuesday. Traders bought 5,257 call options on the company. This represents an increase of approximately 1,415% compared to the average volume of 347 call options.

Hedge Funds Weigh In On Desktop Metal

Hedge funds have recently made changes to their positions in the business. GABELLI & Co INVESTMENT ADVISERS INC. lifted its stake in Desktop Metal by 2.3% during the fourth quarter. GABELLI & Co INVESTMENT ADVISERS INC. now owns 387,865 shares of the pipeline company’s stock valued at $908,000 after purchasing an additional 8,665 shares during the last quarter. ABC Arbitrage SA bought a new position in shares of Desktop Metal in the fourth quarter valued at $27,000. Squarepoint Ops LLC acquired a new stake in shares of Desktop Metal during the 4th quarter valued at $41,000. Fifth Lane Capital LP bought a new stake in shares of Desktop Metal during the 4th quarter worth $42,000. Finally, Renaissance Technologies LLC grew its holdings in shares of Desktop Metal by 65.5% in the 4th quarter. Renaissance Technologies LLC now owns 50,262 shares of the pipeline company’s stock worth $118,000 after acquiring an additional 19,900 shares during the last quarter. Institutional investors and hedge funds own 56.31% of the company’s stock.

Desktop Metal Price Performance

NYSE:DM traded up $2.05 during mid-day trading on Tuesday, reaching $4.32. 24,531,229 shares of the stock were exchanged, compared to its average volume of 375,894. The company has a current ratio of 2.34, a quick ratio of 1.02 and a debt-to-equity ratio of 1.56. The business has a fifty day moving average price of $2.34 and a 200 day moving average price of $3.50. Desktop Metal has a 1-year low of $1.84 and a 1-year high of $11.80. The firm has a market capitalization of $143.93 million, a PE ratio of -0.37 and a beta of 0.70.

Wall Street Analyst Weigh In

Separately, StockNews.com downgraded Desktop Metal from a “hold” rating to a “sell” rating in a research report on Friday, February 7th.

About Desktop Metal

Desktop Metal, Inc manufactures and sells additive manufacturing technologies for engineers, designers, and manufacturers in the Americas, Europe, the Middle East, Africa, and the Asia- Pacific. The company offers Shop System, an entry-level metal 3D printing using binder jetting; X-series platform that provides binder jet 3D printing of specialty materials, including metals and ceramics, and tools; and P-Series offers high-speed metal 3D printing.