Here is Why Nano Dimension (NNDM) Is Up This Year

Nano Dimension Ltd. (NASDAQ:NNDM), founded in 2012, specializes in additive electronics technology. Its novel technology enables quick prototyping and production of high-quality electronic devices. Its flagship product, called DragonFly LDM System, is a unique precision system that develops multilayer circuit-boards, radio frequency antennas, conductive geometries, etc. through custom additive manufacturing. The Israel-based company started trading on Nasdaq back in March 2016.

NNDM shares started 2020 trading around $2. Its stock remained flat in terms of price change during most of the year. However, the stock gained massive value during the last quarter of 2020, with its share price climbing to about $9 on December 31, from around $2.50 on October 1. Most of that gain was driven by new orders for its DragonFly 3D-printing machines.

Nano Dimension announced last month that several customers from U.S. and Europe upgraded from DragonFly Pro systems to the next generation DragonFly LDM systems during 2020 despite the disruptions caused by the Covid-19 pandemic.

Speaking on the update, CEO Yoav Stern said in a statement, “The concept for High Performance Electronic Devices (Hi-PEDs) fabrication by digital Additively Manufactured Electronics (AME) / PE (Printed Electronics) machines is confirmed to be the future of the electronic industry.”

If we look at the financial performance, the company reported revenue of $438,000 for the third quarter of 2020, down from $2,243,000 in the comparable quarter of 2019. Net loss also widened to $0.45 per share in the quarter. The company blamed the Covid-19 pandemic and share-based payments costs for the disappointing performance.

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Nevertheless, NNDM stock value skyrocketed more than 340 percent over the past three months and about 80 percent so far in 2021, bringing the company into the limelight. The stock once again climbed nearly 16 percent on Monday, hitting a new 52-week high of $17.89 on a huge volume of about 65 million shares, as compared to the daily average volume of 29 million shares. The recent stock rally also boosted the market value of the company to nearly $3 billion.