Why 3D Systems Stock Is Soaring Today

3D Systems (NYSE: DDD) stock is making big gains in Thursday's trading. The company's share price was up 15.4% as of 11:15 a.m. ET. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) were both down 0.1% in the same time frame.

3D Systems stock is gaining ground following an announcement that the company will be selling its Geomagic software to Hexagon. 3D Systems will be paid $123 million for the software portfolio, and the deal is expected to close in the first half of next year.

Investors are bullish on 3D Systems' latest deal

3D Systems' Geomagic software portfolio consists of Design X, Control X, Freeform, Wrap, and Geomagic for SolidWorks, and will be integrated into Hexagon's manufacturing intelligence division following the completion of the sale. Investors seem to be quite happy with the purchase price 3D Systems is getting in the deal.

While the move represents a substantial divestiture for 3D Systems, the 3D printing specialist has indicated that it's not completely moving away from the software space. Going forward, the company will be concentrating on software solutions that accelerate adoption for 3D printing, as well as the expansion of its 3D Sprint and 3DXpert platforms and the Oqton Industrial Manufacturing OS.

What's next for 3D Systems?

With an update it published last week, 3D Systems lowered its full-year sales target to between $440 million and $450 million -- down from its previous guidance for sales between $450 million and $460 million. On the other hand, the company expects that geopolitical and macroeconomic headwinds it has faced over the last 18 months will ultimately begin to recede. The company anticipates that its operating expenses will continue to decline, putting the company on track to achieve profitability in the not-too-distant future.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends 3d Systems. The Motley Fool has a disclosure policy.