Quantum (NASDAQ:QMCO) Shares Up 9% - Time to Buy?

Key Points

• Quantum shares rose 9% to about $19.21 in mid-day trading, although volume was 65% below the average session level.
• Analyst sentiment is generally positive: five analysts rate the stock a Buy versus one Sell, producing a “Moderate Buy” consensus and an average price target of $27.33.
• Quantum exceeded quarterly expectations, reporting $0.18 in EPS versus a consensus loss estimate of $0.17 and revenue of $80.8 million versus $75.05 million expected. Institutional investors own approximately 63.7% of the company.

Quantum Corporation (NASDAQ:QMCO - Get Free Report)'s stock price rose 9% during mid-day trading on Monday. The company traded as high as $18.56 and last traded at $19.2080. 387,526 shares traded hands during trading, a decline of 65% from the average session volume of 1,118,747 shares. The stock had previously closed at $17.62.

Analyst Ratings Changes

A number of equities analysts have commented on QMCO shares. 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 research note on Tuesday, August 11th. Wall Street Zen raised Quantum from a "hold" rating to a "buy" rating in a report on Saturday, August 15th. Litchfield Hills Research started coverage on shares of Quantum in a research note on Monday, August 10th. They issued a "buy" rating for the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Quantum in a report on Monday, September 21st. Finally, Lake Street Capital set a $29.00 price target on shares of Quantum and gave the stock a "buy" rating in a research note on Monday, September 14th. Five investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $27.33.

Quantum Price Performance

The company has a market capitalization of $757.42 million, a PE ratio of -1.44 and a beta of 3.08. The business has a 50-day moving average of $25.06 and a 200 day moving average of $15.82.

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

Institutional Trading of Quantum

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Alyeska Investment Group L.P. acquired a new position in Quantum in the 2nd quarter valued at about $29,193,000. Two Seas Capital LP acquired a new position in Quantum during the second quarter worth approximately $27,374,000. Manatuck Hill Partners LLC purchased a new stake in shares of Quantum during the 2nd quarter worth about $3,850,000. BlackRock Inc. acquired a new stake in Quantum in the 2nd quarter valued at $3,003,000. Finally, Bank of America Corp DE raised its position in Quantum by 730.5% in the second quarter. Bank of America Corp DE now owns 170,130 shares of the company's stock valued at $1,871,000 after purchasing an additional 149,645 shares during the period. Institutional investors and hedge funds own 63.66% of the company's stock.

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 offerings are designed to help customers store, protect, archive and access information across on-premises, cloud and hybrid environments.

The company's product portfolio has included Scalar tape libraries and LTO tape storage products, DXi deduplication and backup appliances, and software-defined storage solutions such as ActiveScale object storage.

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