After Stratasys Ltd. (NASDAQ: SSYS) managed to crush its own prospects, more and more investors are losing faith. It is not just that Stratasys shares hit a new recent low after its warnings. This is a cloud on 3D Systems Corp. (NYSE: DDD) as well, even if its stock has held up better during and after the warning from Stratasys.

24/7 Wall St. has seen many analyst downgrades. We have also received word that a well-known short seller is short and is staying short the 3D printing leaders.

On Tuesday, after Monday’s earnings and revenue warning, Stratasys was downgraded to Neutral from Overweight at Piper Jaffray, with a price target slash to $65 from $120 (ouch), and it was downgraded to Hold from Buy at Brean Capital. Then on Wednesday came word that Stifel cut its rating to Hold from Buy, and Morgan Stanley lowered its rating to Equal Weight from Overweight. Also on Wednesday, RBC Capital Markets downgraded its Stratasys price target to $82 from $100, while maintaining an Outperform rating.

A week prior to the Stratasys warnings, Jefferies had downgraded shares of rival 3D Systems to Hold from Buy, with a price target cut to $30 from $42. RBC has also maintained its Market Perform rating on 3D Systems, but lowered its price target down to $40 from $45 in the call.

ALSO READ: Short Sellers Move Back Into 3D Printing Stocks

Now comes word that short selling hedge fund exchange traded fund, the AdvisorShares Ranger Equity Bear ETF (NYSEMKT: HDGE), has been short on both Stratasys and 3D Systems and will continue to be short. Its strategist is Brad Lamensdorf, and he noted that shares of these 3D printing companies fell out of favor once Hewlett-Packard Co. (NYSE: HPQ) said that it would enter the market. Lamensdorf said, “This is no time to go long on either DDD or SSYS despite their sell-off and lowered stock price.”

3D Systems saw its shares close at $30.25 before Stratasys warned, and its stock was last seen at $28.42. Stratasys was last seen trading at $56.90, but this was an $80 stock before it issued its warning.

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