Investors Buy High Volume of Call Options on Quantum (NASDAQ:QMCO)

Key Points

• Quantum saw unusually heavy call-option activity: Investors purchased 2,575 call options, about 91% above the average volume of 1,345 contracts.
• The stock rose to $19.09 during Tuesday trading, while remaining highly volatile, with a 12-month range of $4.19 to $35.65 and a beta of 3.08. Quantum also reported quarterly EPS and revenue above analyst expectations.
• Analyst sentiment is mostly positive: Four analysts rate Quantum a Buy and one rates it Sell, producing a consensus “Moderate Buy” rating and a $26.50 target price. Institutional investors own 63.66% of the company.

Quantum Corporation (NASDAQ:QMCO - Get Free Report) was the recipient of unusually large options trading on Tuesday. Investors acquired 2,575 call options on the company. This represents an increase of approximately 91% compared to the average volume of 1,345 call options.

Quantum Stock Performance

NASDAQ:QMCO traded up $0.78 during trading hours on Tuesday, reaching $19.09. The stock had a trading volume of 659,584 shares, compared to its average volume of 1,104,598. The stock has a 50 day simple moving average of $25.48 and a 200 day simple moving average of $15.48. Quantum has a 12-month low of $4.19 and a 12-month high of $35.65. The stock has a market cap of $752.34 million, a P/E ratio of -1.44 and a beta of 3.08.

Quantum (NASDAQ:QMCO - Get Free Report) last announced its quarterly earnings results on Monday, August 10th. The company reported $0.18 EPS for the quarter, beating analysts' consensus estimates of ($0.17) by $0.35. The business had revenue of $80.80 million for the quarter, compared to analysts' expectations of $75.05 million. Quantum has set its Q2 2027 guidance at 0.020-0.220 EPS. On average, equities analysts expect that Quantum will post 0.31 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of analysts recently commented on the company. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Quantum in a research report on Monday, September 21st. Lake Street Capital set a $29.00 price objective on Quantum and gave the stock a "buy" rating in a research report on Monday, September 14th. Wall Street Zen upgraded Quantum from a "hold" rating to a "buy" rating in a research note on Saturday, August 15th. Northland Securities raised Quantum from a "market perform" rating to an "outperform" rating and set a $24.00 target price for the company in a research report on Tuesday, August 11th. Finally, Litchfield Hills Research started coverage on Quantum in a research note on Monday, August 10th. They set a "buy" rating on the stock. Four analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $26.50.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. State Street Corp increased its stake in Quantum by 4.3% in the 2nd quarter. State Street Corp now owns 75,914 shares of the company's stock worth $835,000 after purchasing an additional 3,100 shares during the period. Squarepoint Ops LLC purchased a new stake in shares of Quantum during the second quarter valued at approximately $372,000. Susquehanna Fundamental Investments LLC purchased a new stake in shares of Quantum during the second quarter valued at approximately $381,000. Alyeska Investment Group L.P. purchased a new stake in shares of Quantum during the second quarter valued at approximately $29,193,000. Finally, Bank of America Corp DE grew its holdings in shares of Quantum by 730.5% in the second quarter. Bank of America Corp DE now owns 170,130 shares of the company's stock worth $1,871,000 after purchasing an additional 149,645 shares during the last quarter. Institutional investors own 63.66% of the company's stock.

Quantum Company Profile

Quantum Corporation NASDAQ: QMCO provides data storage, management and protection solutions for organizations that generate and retain large volumes of unstructured data. Its customers include businesses, media and entertainment companies, government agencies, research institutions and other organizations that require long-term data preservation, rapid access and secure information management.

The company's portfolio includes tape libraries and drives based on Linear Tape-Open (LTO) technology, disk-based backup and deduplication systems, and software for managing files, objects and data workflows.

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