Quantum (NASDAQ:QMCO) Shares Down 11.2% - Time to Sell?

Key Points

• Quantum shares fell 11.2% to about $21.19 on Thursday, with trading volume roughly half its average; the stock has a market capitalization of approximately $819.8 million.
• Analyst sentiment remains mixed but leans positive: four analysts rate Quantum a Buy and one rates it a Sell, producing a “Moderate Buy” consensus and a $26.50 average price target.
• Quantum exceeded quarterly expectations, reporting $0.18 in EPS versus a $0.17 loss estimate and revenue of $80.8 million versus $75.05 million expected; institutional investors own 63.66% of the company.

Quantum Corporation (NASDAQ:QMCO - Get Free Report)'s share price was down 11.2% on Thursday. The stock traded as low as $21.03 and last traded at $21.1930. 536,777 shares were traded during trading, a decline of 50% from the average daily volume of 1,084,388 shares. The stock had previously closed at $23.86.

Analyst Ratings Changes

QMCO has been the topic of several recent analyst reports. Wall Street Zen upgraded Quantum from a "hold" rating to a "buy" rating in a research note on Saturday, August 15th. Weiss Ratings restated a "sell (d-)" rating on shares of Quantum in a research note on Monday, September 21st. Litchfield Hills Research began coverage on Quantum in a research note on Monday, August 10th. They set a "buy" rating for the company. Lake Street Capital set a $29.00 price objective on Quantum and gave the stock a "buy" rating in a report on Monday, September 14th. Finally, Northland Securities upgraded Quantum from a "market perform" rating to an "outperform" rating and set a $24.00 price objective on the stock in a report on Tuesday, August 11th. Four equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Quantum has an average rating of "Moderate Buy" and a consensus target price of $26.50.

Quantum Price Performance

The firm has a market cap of $819.77 million, a P/E ratio of -1.58 and a beta of 3.08. The firm's 50-day moving average price is $25.02 and its 200 day moving average price is $15.16.

Quantum (NASDAQ:QMCO - Get Free Report) last announced its quarterly earnings data on Monday, August 10th. The company reported $0.18 earnings per share for the quarter, beating the consensus estimate of ($0.17) by $0.35. The firm had revenue of $80.80 million during the quarter, compared to the consensus estimate of $75.05 million. Quantum has set its Q2 2027 guidance at 0.020-0.220 EPS. Analysts forecast that Quantum Corporation will post 0.31 earnings per share for the current year.

Institutional Investors Weigh In On Quantum

Several institutional investors and hedge funds have recently made changes to their positions in QMCO. Alyeska Investment Group L.P. bought a new position in Quantum during the second quarter worth $29,193,000. Two Seas Capital LP bought a new stake in Quantum during the second quarter valued at $27,374,000. Manatuck Hill Partners LLC bought a new stake in Quantum during the second quarter valued at $3,850,000. BlackRock Inc. bought a new stake in Quantum during the second quarter valued at $3,003,000. Finally, Bank of America Corp DE raised its holdings in shares of Quantum by 730.5% during 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 period. 63.66% of the stock is owned by institutional investors and hedge funds.

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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