Xometry’s Stock Caught in a Valuation Tug-of-War

The shares of manufacturing marketplace Xometry are currently being pulled in opposite directions by two powerful forces. On one side, major institutional investors are building significant positions. On the other, the company’s own executives have been reducing their stakes. This dynamic was ignited by the firm’s latest quarterly earnings report, which delivered a powerful catalyst for both sides of the trade.

Strong Fundamentals Fuel the Fire

The core driver behind the recent flurry of activity was Xometry’s impressive third-quarter performance, announced in November. The results marked a decisive positive shift, surpassing all market expectations.

• Revenue surged by 28% year-over-year to $180.7 million, beating estimates.
• Profitability showed marked improvement, with adjusted EBITDA swinging to a positive $6.1 million from a prior loss.
• Margins expanded significantly, as the marketplace’s gross margin increased by 210 basis points to 35.7%.
• Guidance was raised, with management boosting its full-year outlook for both revenue and adjusted EBITDA.

This robust financial foundation is the battleground upon which the current valuation debate is being fought.

Institutional Investors Place Bullish Bets

A wave of buying from large funds has been a defining feature of recent market activity. Institutional investors now control a substantial 97.31% of all shares, a strong endorsement of the digital manufacturing platform’s long-term narrative.

Notable moves include XTX Topco Ltd., which boosted its holding by 39.7% in Q2 to over 40,000 shares. Silvant Capital Management established a new position worth $745,000. Other heavyweight investors like Rhumbline Advisers and Legal & General also increased their stakes. One of the most aggressive bets came from Lisanti Capital Growth, which grew its position by a striking 140%. This concentrated buying power suggests a strategic reallocation within major portfolios.

Should investors sell immediately? Or is it worth buying Xometry?

Insider Sales Present a Contrasting Signal

In stark contrast to the institutional enthusiasm, actions from within the company’s leadership tell a different story. Corporate insiders have sold shares valued at more than $660,000 over the past three months.

The largest transaction was executed by CEO Randolph Altschuler, who divested shares worth approximately $470,000 in October. CFO James Miln also sold a portion of his holdings. These sales reduced the CEO’s position by 2.92% and contribute to a mixed message for the market, which often views insider transactions as a key sentiment indicator.

Analysts Weigh Growth Against Valuation

The analyst community has responded with a mix of optimism and caution. JPMorgan dramatically raised its price target from $55 to $70, reaffirming its “Overweight” rating. UBS followed with a target increase of its own. The consensus average price target now sits at $57.89, accompanied by a “Hold” recommendation.

Underlying concerns persist, however. Xometry remains unprofitable on a GAAP basis. Its price-to-sales ratio of 4.9 sits well above the industry average of 1.1, indicating that substantial growth is already priced into the stock. For shares to advance further, the company will likely need to demonstrate accelerating margin expansion faster than currently anticipated. Trading between $18.59 and $69.26, the stock continues to search for a clear directional trend amidst these competing pressures.