Quantum (NASDAQ:QMCO) Shares Gap Down - Here's Why

Key Points

• Quantum shares opened lower, falling from a prior close of $18.31 to $17.60 before recovering to $18.5480 in trading.
• Analyst sentiment is broadly positive: four analysts rate Quantum a Buy and one a Sell, resulting in a “Moderate Buy” consensus and a $26.50 average price target.
• Quantum exceeded quarterly expectations, reporting $0.18 in earnings per share versus a projected $0.17 loss and revenue of $80.8 million versus estimates of $75.05 million; institutional investors own 63.66% of the company.

Quantum Corporation (NASDAQ:QMCO - Get Free Report) shares gapped down before the market opened on Tuesday. The stock had previously closed at $18.31, but opened at $17.60. Quantum shares last traded at $18.5480, with a volume of 142,993 shares.

Wall Street Analyst Weigh In

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

Quantum Trading Up 3.9%

The business's fifty day simple moving average is $25.48 and its 200 day simple moving average is $15.48. The stock has a market cap of $749.46 million, a P/E ratio of -1.44 and a beta of 3.08.

Quantum (NASDAQ:QMCO - Get Free Report) last posted 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 company had revenue of $80.80 million during the quarter, compared to analyst estimates of $75.05 million. Quantum has set its Q2 2027 guidance at 0.020-0.220 EPS. On average, analysts predict that Quantum Corporation will post 0.31 earnings per share for the current fiscal year.

Institutional Trading of Quantum

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Alyeska Investment Group L.P. acquired a new position in Quantum during the 2nd quarter worth $29,193,000. Two Seas Capital LP bought a new position in Quantum in the 2nd quarter valued at $27,374,000. Manatuck Hill Partners LLC bought a new position in Quantum in the 2nd quarter valued at $3,850,000. BlackRock Inc. bought a new position in Quantum in the 2nd quarter valued at $3,003,000. Finally, Bank of America Corp DE increased its stake in shares of Quantum by 730.5% in the 2nd quarter. Bank of America Corp DE now owns 170,130 shares of the company's stock valued at $1,871,000 after buying an additional 149,645 shares during the period. Institutional investors and hedge funds 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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