Markforged Holding Corporation (NYSE: MKFG) Stock Sees Huge Buying: What Next?
There were some stocks that stole the spotlight on Wednesday, and one of those was the Markforged Holding Corporation (NYSE: MKFG) stock, which clocked gains of 74% amidst heavy interest.
Nano Dimension to Acquire Markforged, Creating a Leading Player in Additive Manufacturing (“AM”) With the Technologies Expected to Drive Future Growth
On Wednesday, Nano Dimension along with Markforged Holding Corporation made a joint statement with regards to the signing of a definitive agreement. As per the terms of the agreement, Nano Dimension would acquire all the outstanding shares in Markforged for $5 a share in a transaction entirely conducted in cash. The acquisition could be a game changer for Nano Dimension since it would enable the company to take over an outfit with efficiency and scale.
In 2023, Markforged had generated revenues of as much as $93.8 million with a gross margin of 47.4% and a non-GAAP gross margin of 48.6%. There is expectation that the combined entity following the merger will have a strong balance sheet.
The total expected cash and cash equivalents for the combined entity, inclusive of marketable securities, could be to the tune of $475 million. It was also revealed that the total compensation that would be paid to Markforged shareholders would amount to $115 million. Considering the optimism around the Nano Dimension stock yesterday, it would be interesting to see if it can maintain its momentum this morning.
Key Quote
Yoav Stern, Chief Executive Officer and member of the board of directors of Nano Dimension, said, “In combining with Markforged, Nano Dimension is taking bold action in its journey towards becoming a digital manufacturing leader and being a foundational pillar of Industry 4.0. Markforged is an exceptional company with innovative AM materials and solutions for true production. Their prowess is validated by their more than fifteen thousand installed and connected systems in the field with many leading names across key industry verticals. I am excited to work with Shai Terem and his team, who have done an exceptional job developing their cutting-edge solutions. This is all the more substantial when we think about the anticipated closing of our deal with Desktop Metal. We believe the combination of Nano Dimension, Desktop Metal, and Markforged further strengthens our unique opportunity in creating value for our shareholders, customers, and employees as we work to deliver profitable growth, exceptional services, and notable career development opportunities.”
Fundamentals
| P/E Ratio | -0.81 |
| PEG Ratio | -0.17 |
| Price to Book | 0.82 |
| Price to Cash Flow | – |
| Price to Free Cash Flow | – |
| Total Sales (TTM) | 86.48 M |
| Revenue per Share (TTM) | 4.30 |
| Shares Outstanding | 20.325 M |
| Share Float (%) | 11.27 M (55.46%) |
| % Held by Institutions | 39.76 |
| Dividends Per Share (TTM) | – |
| Ex-Dividend Date | – |