Proto Labs: A Calculated Risk?

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Right. So, another day, another SEC filing to wade through. It’s exhausting, really. All these numbers. It’s like trying to assemble IKEA furniture with instructions written in hieroglyphics. But, apparently, American Capital Management – a name that sounds reassuringly solid, doesn’t it? – has been buying Proto Labs stock. 352,015 shares, to be precise. Which, when you convert it to actual money (because numbers in isolation are just… terrifying) comes to about $18.01 million. Honestly, the sheer scale of it makes my head spin. I’m mostly used to buying oat milk and occasionally a slightly overpriced candle.

They increased their stake during the fourth quarter. Which, in investor-speak, means they think it’s a good idea. Or, at least, a less-bad idea than, say, investing in a pigeon racing syndicate. The quarter-end value went up $17.96 million. Both from the share increase and… well, the market doing its mysterious, unpredictable thing. It’s like a particularly chaotic dating app – you never know what’s going to swipe right.

It now constitutes 1.41% of their 13F assets. Which sounds… important. I’ve made a list of their top holdings, just for context (and to make myself feel slightly less financially illiterate):

  • NASDAQ: AVAV: $156.67 million (6.9% of AUM)
  • NASDAQ: CYBR: $152.56 million (6.7% of AUM)
  • NASDAQ: MEDP: $126.02 million (5.6% of AUM)
  • NASDAQ: KTOS: $124.07 million (5.5% of AUM)
  • NASDAQ: IDXX: $122.96 million (5.4% of AUM)

The stock price is currently at $66.82, which is… up. Significantly. Up 49.7% over the past year. Outperforming the S&P 500 by 39.33 percentage points. Which, if I’m understanding this correctly, means it’s doing… well? It feels strangely unsettling when things do go right. I’m almost expecting a meteor to strike or something.

Company Snapshot

Metric Value
Price (as of market close 2/17/26) $66.82
Market Capitalization $1.56 billion
Revenue (TTM) $533.13 million
Net Income (TTM) $21.24 million

So, what is Proto Labs? Apparently, they do digital manufacturing. Injection molding, CNC machining, 3D printing, sheet metal fabrication. All that stuff. They make prototypes and production parts. It sounds… complicated. They operate online, which is reassuringly modern. They serve engineers and product developers. Basically, they make things for people who make things. It’s very meta. They’re fast and customizable. Which, in today’s world, feels like a winning combination. I’ve made a note to investigate whether they can 3D print a self-folding laundry basket.

American Capital’s move, of course, begs the question: should I be buying Proto Labs stock? It’s tempting. Very tempting. Especially because the stock is on a roll. Up about 45% in the last year. Near its 52-week high of $67.52. They reported good earnings. Revenue growth is topping 12%. The highest rate in over two years. It all sounds… promising. Too promising, perhaps.

Because here’s the thing. The P/E multiple is 73x. Seventy-three! The average is around 29x. Over the last two years, Proto Labs’ average P/E ratio was about 55x. Which means it’s… elevated. Significantly. It feels like buying a designer handbag – you know it’s probably overpriced, but you do it anyway. The rational part of my brain is screaming. The impulsive part is already browsing brokerage accounts.

So, is it worth considering? If you’re looking for a fast-growing company in the digital manufacturing/3D printing space, yes. Absolutely. But be warned. The valuation might be a bit… ambitious. It might be out of reach for some. Or, at least, for someone who also needs to buy oat milk and occasionally a slightly overpriced candle. I’m going to need a spreadsheet. And possibly a therapist.

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2026-02-20 03:52