The digital manufacturing marketplace Xometry continues to garner a “Moderate Buy” consensus rating from Wall Street analysts. This assessment is supported by nine research firms, with six recommending a ‘Buy’ and three maintaining a ‘Neutral’ stance. The collective average price target for the stock stands at $40.44.
Impressive Q2 2025 Performance Drives Optimism
The recent wave of analyst upgrades is firmly rooted in the company’s exceptional second-quarter financial performance, which handily surpassed market expectations. Xometry reported a significant year-over-year revenue increase of 22.6%, achieving a total of $162.55 million against an anticipated $156.53 million. Earnings per share also outperformed, coming in at $0.09 compared to the $0.05 forecast. A key profitability metric, Adjusted EBITDA, showed a substantial improvement of $6.6 million year-over-year to reach a positive $3.9 million. Reflecting this strong momentum, the stock hit a 52-week high of $48.64 on August 22, representing a remarkable 143.44% gain over the past twelve months.
A Series of Upward Revisions
This robust operational performance has triggered a succession of positive adjustments from financial institutions, indicating a widespread reassessment of Xometry’s growth potential. The flurry of activity began in early August:
Should investors sell immediately? Or is it worth buying Xometry?
- Cantor Fitzgerald upgraded its rating from “Underweight” to “Neutral” on August 5, simultaneously establishing a $41 price target.
- On August 6, UBS raised its target from $35 to $40, though it maintained a “Neutral” recommendation.
- Also on August 6, JMP Securities issued a more bullish revision, increasing its price objective from $45 to $50 and reaffirming its “Market Outperform” rating.
- Earlier, on June 3, JPMorgan had increased its target from $36 to $38, maintaining an “Overweight” position on the stock.
Record Quarterly Revenue Fuels Growth
The core driver behind this analyst enthusiasm is the platform’s exceptional operational performance. Xometry’s marketplace segment was the primary growth engine, expanding by 26% and propelling the company to a record Q2 revenue of $163 million. This figure marks a 23% increase compared to the same period last year. This top-line strength flowed through to profitability, with Gross Profit also climbing by 23% to reach $65.2 million.
Institutional Confidence Contrasts with Insider Sales
An examination of the shareholder base reveals a fascinating dynamic. Institutional investors demonstrate overwhelming confidence, holding a commanding 97.31% of all shares. Recent filings show that firms including GAMMA Investing LLC and SG Americas Securities have significantly increased their stakes, a move interpreted as a strong endorsement of the company’s long-term strategy.
This makes a contrasting action by CEO Randolph Altschuler in early July particularly noteworthy. During this period, he sold shares valued at over $302,000. While insider selling can attract scrutiny, the continued and growing dominance of large institutional investors presents a powerful counter-narrative of belief in Xometry’s future.
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