Proto Labs (NYSE:PRLB) Stock Price Up 8.6% Following Strong Earnings

Proto Labs, Inc. (NYSE:PRLB) shot up 8.6% on Friday following a better than expected earnings announcement. The stock traded as high as $38.43 and last traded at $38.89. 43,591 shares changed hands during trading, a decline of 81% from the average session volume of 232,715 shares. The stock had previously closed at $35.80.

The industrial products company reported $0.33 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.29 by $0.04. The company had revenue of $126.21 million during the quarter, compared to analysts’ expectations of $123.71 million. Proto Labs had a net margin of 3.31% and a return on equity of 2.44%. The business’s quarterly revenue was down 1.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.40 earnings per share.

Proto Labs declared that its Board of Directors has approved a share repurchase program on Friday, February 7th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the industrial products company to repurchase up to 9.8% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

PRLB has been the topic of a number of research reports. Needham & Company LLC reaffirmed a “hold” rating on shares of Proto Labs in a research report on Friday, February 7th. StockNews.com downgraded shares of Proto Labs from a “strong-buy” rating to a “buy” rating in a report on Thursday, April 24th. Finally, Cantor Fitzgerald increased their target price on shares of Proto Labs from $40.00 to $50.00 and gave the company an “overweight” rating in a research note on Monday, February 10th. Two equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $43.67.

Institutional Investors Weigh In On Proto Labs

Several institutional investors and hedge funds have recently bought and sold shares of the business. Barclays PLC increased its stake in Proto Labs by 66.4% in the third quarter. Barclays PLC now owns 42,633 shares of the industrial products company’s stock valued at $1,252,000 after acquiring an additional 17,017 shares during the period. Tidal Investments LLC grew its stake in shares of Proto Labs by 1.7% in the 3rd quarter. Tidal Investments LLC now owns 30,156 shares of the industrial products company’s stock valued at $886,000 after purchasing an additional 494 shares during the period. JPMorgan Chase & Co. raised its holdings in shares of Proto Labs by 93.1% in the 3rd quarter. JPMorgan Chase & Co. now owns 139,890 shares of the industrial products company’s stock worth $4,109,000 after buying an additional 67,449 shares in the last quarter. Nordea Investment Management AB lifted its position in shares of Proto Labs by 76.0% during the 4th quarter. Nordea Investment Management AB now owns 244,987 shares of the industrial products company’s stock worth $9,711,000 after buying an additional 105,813 shares during the period. Finally, Diversified Trust Co grew its position in Proto Labs by 13.9% in the fourth quarter. Diversified Trust Co now owns 9,236 shares of the industrial products company’s stock valued at $361,000 after acquiring an additional 1,125 shares during the period. Institutional investors own 84.54% of the company’s stock.

Proto Labs Stock Up 7.2 %

The stock has a market capitalization of $912.57 million, a P/E ratio of 59.06 and a beta of 1.52. The business has a 50-day simple moving average of $35.64 and a two-hundred day simple moving average of $37.87.

About Proto Labs

Proto Labs, Inc, together with its subsidiaries, operates as a digital manufacturer of custom parts in the United States and Europe. The company offers injection molding; computer numerical control machining; three-dimensional printing; and sheet metal fabrication products. It serves developers and engineers, who use 3D computer-aided design software to design products across a range of end-markets.