Proto Labs (NYSE:PRLB) Stock Price Up 8.6% on Better-Than-Expected Earnings

Proto Labs, Inc. (NYSE:PRLB) shot up 8.6% on Friday after the company announced better than expected quarterly earnings. The company 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, topping the consensus estimate of $0.29 by $0.04. Proto Labs had a net margin of 3.31% and a return on equity of 2.44%. The company had revenue of $126.21 million for the quarter, compared to analysts’ expectations of $123.71 million. During the same period in the prior year, the business earned $0.40 EPS. The firm’s quarterly revenue was down 1.3% on a year-over-year basis.

Proto Labs announced that its board has approved a stock buyback plan on Friday, February 7th that permits the company to buyback $100.00 million in shares. This buyback authorization permits the industrial products company to purchase up to 9.8% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board believes its stock is undervalued.

Analyst Ratings Changes

PRLB has been the subject of a number of recent analyst reports. Needham & Company LLC reissued a “hold” rating on shares of Proto Labs in a research report on Friday, February 7th. StockNews.com lowered Proto Labs from a “strong-buy” rating to a “buy” rating in a research note on Thursday, April 24th. Finally, Cantor Fitzgerald increased their price objective on shares of Proto Labs from $40.00 to $50.00 and gave the company an “overweight” rating in a research report on Monday, February 10th. Two research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. According to data from MarketBeat, Proto Labs presently has a consensus rating of “Moderate Buy” and a consensus price target of $43.67.

Institutional Investors Weigh In On Proto Labs

A number of institutional investors and hedge funds have recently modified their holdings of the company. Empowered Funds LLC raised its position in Proto Labs by 544.3% during the 4th quarter. Empowered Funds LLC now owns 95,359 shares of the industrial products company’s stock worth $3,728,000 after buying an additional 80,558 shares during the last quarter. JPMorgan Chase & Co. lifted its position in Proto Labs by 93.1% during the third quarter. JPMorgan Chase & Co. now owns 139,890 shares of the industrial products company’s stock valued at $4,109,000 after purchasing an additional 67,449 shares during the period. Nordea Investment Management AB boosted its holdings in Proto Labs by 76.0% in the fourth quarter. Nordea Investment Management AB now owns 244,987 shares of the industrial products company’s stock valued at $9,711,000 after purchasing an additional 105,813 shares during the last quarter. Barclays PLC boosted its holdings 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 purchasing an additional 17,017 shares during the last quarter. Finally, Rice Hall James & Associates LLC purchased a new stake in Proto Labs in the fourth quarter valued at $5,972,000. Institutional investors and hedge funds own 84.54% of the company’s stock.

Proto Labs Trading Up 7.2 %

The firm has a 50-day simple moving average of $35.64 and a two-hundred day simple moving average of $37.87. The company has a market capitalization of $912.57 million, a price-to-earnings ratio of 59.06 and a beta of 1.52.

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.