Stratasys (SSYS) Shares Surge 12.73% on New Tooling Center Launch, Strategic Expansion Fuels Rally

Stratasys (SSYS) shares surged 12.73% on Monday, reaching a peak unseen since September 2025, with an intraday gain of 13.02%. The rally was fueled by strategic developments, including the launch of a North American Tooling Center of Excellence in Flint, Michigan, a joint venture with Automation Intelligence. This initiative aims to advance digital tooling for automotive and manufacturing sectors, leveraging Stratasys’s 3D printing expertise to enhance production efficiency.

Recent volatility has also been driven by ongoing merger negotiations with Desktop Metal. Proxy advisory firms and activist investors have issued conflicting guidance. Glass Lewis and Donerail Group advised shareholders to reject the proposed deal, citing governance and strategic concerns, while ISS supported it for potential synergies. The Stratasys board rejected a rival offer from 3D Systems, reaffirming its focus on the Desktop Metal merger as a path to market consolidation.

Institutional investor activity further underscored divergent views. ARK Investment Management sold 217,228 shares on September 15, while Legato Capital Management added 13,773 shares the prior day. These moves reflect cautious optimism about Stratasys’s long-term innovation potential amid short-term uncertainty. The company’s recent ESG report highlighted progress in sustainability, including reduced Scope 3 emissions, aligning with growing demand for environmentally responsible manufacturing solutions.

Stratasys’s stock remains sensitive to macroeconomic factors, including rising Treasury yields and Federal Reserve policy uncertainty. However, its strategic partnerships, such as the PowderEase T1 system collaboration with AM Solutions, demonstrate a commitment to advancing post-processing technologies critical for additive manufacturing adoption. The outcome of the September 28 shareholder vote on the Desktop Metal merger will likely shape near-term investor sentiment, as conflicting proxy recommendations highlight the decision’s complexity and potential market impact.