Markforged Holding Corporation (NYSE:MKFG) Stock Rockets 30%: More To Come?
Markforged Holding Corporation (NYSE:MKFG) could be in sharp focus this morning after its stock clocked gains of 30% yesterday following a key announcement.
Markforged Announces Settlement in IP Litigation
The company, involved in the strengthening of resilience through the enablement of industrial production at the point of need, announced that it had inked a Settlement and Patent License Agreement.
The agreement had been made in relation to the patent infringement case filed by Continuous Composites Inc. The settlement agreement signed by the company was a comprehensive one, which resolved all the claims and counterclaims that had been part of the litigation. However, it should be noted that the litigation is still pending at the United States District Court for the District of Delaware.
As per the provisions of the settlement agreement signed by Markforged Holding Corporation, the company would pay Continuous Composites $18 million upfront. That payment would be made at some point in the fourth quarter of the 2024 fiscal year. Thereafter, the company would make three more payments of $1 million, $2 million, and $4 million in the 2025, 2026, and 2027 fiscal years, respectively.
Following the agreement, the two companies would also need to file a dismissal of the dispute jointly with prejudice at the District Court and dismiss all claims.
Executive Statement
“We are pleased to announce this Settlement Agreement which, if approved by the District Court, will bring this litigation to a successful conclusion that will eliminate this distraction to Markforged and the uncertainty over the outcome of this litigation for all of our stakeholders,” commented Shai Terem, President and Chief Executive Officer of Markforged. “In addition, we are particularly excited after the successful launch of metal printing capability for the FX10, the world’s first industrial 3D printer for metals and composites, at the International Manufacturing Technology Show in Chicago. With the Settlement Agreement in place and the previously announced $25 million cost reduction initiative implemented, we are committed to advancing our strategic objectives and executing on our strategy to bring industrial 3D printing right to the factory floor.”
Traders Note
Technicals
| +/- EMA(20) | 2.28 (+24.56%) |
| +/- SMA(50) | 2.84 (+0.00%) |
| +/- SMA(200) | 5.43 (-47.70%) |
| 5-Day Perf. | +44.16% |
| 1-Month Perf. | +6.33% |
| 3-Month Perf. | -34.41% |
| 6-Month Perf. | -62.75% |
| YTD Perf. | -65.37% |
| 1-Year Perf. | -78.81% |
| RSI(14) | 60.13 |
| ATR(14) | 0.3 |
| ADX(14) | 29.65 |
| Beta (5Y) | 1.57 |