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

Key Points

• Quantum shares fell sharply at the open, dropping from a prior close of $27.51 to $26.02 before trading around $26.60.
• Analyst sentiment remains generally positive: four analysts rate the stock Buy and one rates it Sell, producing a consensus “Moderate Buy” rating and an average price target of $26.50.
• Quantum exceeded quarterly expectations, reporting $0.18 in EPS versus a projected loss of $0.17 and revenue of $80.8 million versus $75.05 million expected. Institutional investors own approximately 63.66% of the company.

Quantum Corporation (NASDAQ:QMCO - Get Free Report) shares gapped down prior to trading on Tuesday. The stock had previously closed at $27.51, but opened at $26.02. Quantum shares last traded at $26.6010, with a volume of 721,372 shares.

Wall Street Analysts Forecast Growth

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

Quantum Stock Performance

The company has a market capitalization of $1.04 billion, a PE ratio of -1.99 and a beta of 3.08. The business has a fifty day moving average price of $24.48 and a 200 day moving average price of $14.88.

Quantum (NASDAQ:QMCO - Get Free Report) last issued its earnings results on Monday, August 10th. The company reported $0.18 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.17) by $0.35. The firm 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. Research analysts forecast that Quantum Corporation will post 0.31 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Quantum

Several institutional investors have recently bought and sold shares of the business. Alyeska Investment Group L.P. purchased a new position in shares of Quantum in the 2nd quarter valued at $29,193,000. Two Seas Capital LP acquired a new position in shares of Quantum during the 2nd quarter valued at $27,374,000. Manatuck Hill Partners LLC acquired a new position in shares of Quantum during the 2nd quarter valued at $3,850,000. BlackRock Inc. purchased a new stake in Quantum during the 2nd quarter worth $3,003,000. Finally, Bank of America Corp DE boosted its position in Quantum by 730.5% during the 2nd 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 currently owned by hedge funds and other institutional investors.

About Quantum

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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