Velo3D Inc (NASDAQ:VELO) shares are trading higher Tuesday morning after the company announced it has been selected as the first qualified 3D-printing vendor for the U.S. Army's Ground Vehicle Systems Center (GVSC).
Here’s what investors need to know.
Partnership Targets Defense Supply Chain Bottlenecks
Velo3D says the designation, made public during the Military Additive Manufacturing Summit, positions the company at the center of the Army's push to accelerate qualified additive manufacturing solutions across the Defense Industrial Base.
Under an existing Cooperative Research & Development Agreement, Velo3D and GVSC will develop and validate complex metal parts and assemblies for ground combat vehicles and other military systems.
Velo3D says the company met all of GVSC's qualification criteria in less than two weeks and will use its U.S.-built Sapphire printers to produce critical components in Aluminum CP1 and Inconel 718.
What The News Could Mean For VELO Stock
While financial terms were not disclosed, the GVSC program could expand demand for Velo3D's printers and software platform if additive manufacturing parts are widely adopted across Army fleets. Traders and investors will be watching for follow-on contract wins.
“Our Rapid Production Solution is a proven solution the Department of War and the broader national security community increasingly rely on to accelerate the delivery of critical advanced technologies,” said Arun Jeldi, CEO of Velo3D.
Mixed Momentum Despite Strong Gains
Velo3D is currently trading 6.8% below its 20-day simple moving average (SMA) but is 12% above its 50-day SMA, reflecting a mixed short-term trend. Over the past 12 months, shares have surged 344.35% and are currently positioned closer to their 52-week highs than lows, indicating strong long-term performance.
The RSI is at 47.87, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, MACD is below its signal line, indicating bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $16.50
- Key Support: $12.50
Velo3D’s Business Model
Velo3D provides additive manufacturing (AM), also referred to as three-dimensional printing (3D printing), to deliver breakthroughs in performance, cost, and time in the production of high-value metal parts.
The Velo3D intelligent metal additive manufacturing solution is comprised of the Velo3D Flow intelligent print preparation software, the Sapphire production system and Velo3D Assure, real-time quality assurance software.
Velo3D Shares Climb Tuesday
VELO Price Action: Velo3D shares were up 8.25% at $14.83 at the time of publication on Tuesday, according to Benzinga Pro data.
Image: Shutterstock
