What's Going On With Velo3D Stock Monday?

Velo3D Inc (NASDAQ:VELO) shares are climbing Monday afternoon, building on recent momentum. Here’s what investors need to know.

• Velo3D stock is showing exceptional strength. What’s driving VELO stock higher?

Defense Contract Supports Revenue Visibility

Velo3D last week announced an $11.5 million production agreement with a major U.S. defense contractor.

The multi-year contract will use Velo3D's Rapid Production Solution and large industrial printers to produce parts faster and at lower cost, supporting expectations for more consistent defense revenue.

Insider Buying Underscores Leadership Confidence

Sentiment is also supported by insider activity. Director Jason Michael Lloyd disclosed open-market purchases of 7,000 shares at an average price near $3.91, raising his holdings to 13,376 shares.

CEO Arun Jeldi also received additional stock through the vesting of previously granted restricted stock units, a scheduled compensation event, but investors are likely focused on Lloyd's buying.

Velo3D's ties to U.S. defense customers continue to deepen. The company was recently named the first qualified 3D-printing vendor by the U.S. Army Ground Vehicle Systems Center, which is using additive manufacturing to modernize ground vehicles.

Velo3D’s Bearish Short Term Trend

Currently, Velo3D is trading 26.9% below its 20-day simple moving average (SMA) and 4% below its 100-day SMA, indicating a bearish short-term trend.

Over the past 12 months, shares have increased by 175.30%, positioning the stock closer to its 52-week highs than lows.

The RSI is at 39.69, which is considered neutral territory, while the MACD shows a value of -1.4297, below its signal line at -0.8980, indicating bearish pressure on the stock.

The combination of neutral RSI and bearish MACD suggests mixed momentum, reflecting uncertainty in the stock’s immediate direction.

• Key Resistance: $12.50
• Key Support: $9.00

Earnings Report Approaches Quickly

The countdown is on: Velo3D is set to report earnings on March 6.

• EPS Estimate: Loss of 56 cents
• Revenue Estimate: $8.68 million

Benzinga Edge Rankings

Benzinga Edge stock rankings show Velo3D scores bullish on the long-term price trend, while its short- and medium-term trends remain negative.

Velo3D Shares Edge Higher Monday

VELO Price Action: Velo3D shares were up 5.41% at $9.54 at the time of publication on Monday, according to Benzinga Pro data.

Image: Shutterstock