Quantum (NASDAQ:QMCO) Trading Up 7.7% - Here's What Happened

Key Points

• Quantum shares rose 7.7% to about $27.63 in mid-day trading, despite volume running 24% below the average session level.
• Analyst sentiment remains broadly positive: four analysts rate the stock a Buy and one rates it Sell, resulting in a “Moderate Buy” consensus and a $26.50 average price target.
• Quantum beat quarterly expectations with $0.18 in EPS versus a projected $0.17 loss and revenue of $80.8 million versus the $75.05 million consensus estimate. Institutional investors own 63.66% of the company.

Shares of Quantum Corporation (NASDAQ:QMCO - Get Free Report) were up 7.7% during mid-day trading on Wednesday . The company traded as high as $27.50 and last traded at $27.6280. 739,814 shares traded hands during mid-day trading, a decline of 24% from the average session volume of 978,823 shares. The stock had previously closed at $25.65.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on QMCO. Northland Securities upgraded shares of Quantum from a "market perform" rating to an "outperform" rating and set a $24.00 target price on the stock in a research report on Tuesday, August 11th. Needham & Company LLC started coverage on Quantum in a report on Wednesday, June 3rd. They issued a "buy" rating for the company. Weiss Ratings restated a "sell (d-)" rating on shares of Quantum in a research report on Monday. Litchfield Hills Research assumed coverage on Quantum in a research note on Monday, August 10th. They issued a "buy" rating on the stock. Finally, Lake Street Capital set a $29.00 target price on shares of Quantum and gave the stock a "buy" rating in a report on Monday, September 14th. Four research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $26.50.

Quantum Price Performance

The company has a market capitalization of $1.13 billion, a P/E ratio of -2.17 and a beta of 3.14. The stock's 50 day simple moving average is $18.82 and its two-hundred day simple moving average is $12.34.

Quantum (NASDAQ:QMCO - Get Free Report) last released 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 company 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, equities research analysts expect that Quantum Corporation will post 0.31 earnings per share for the current year.

Hedge Funds Weigh In On Quantum

Several hedge funds have recently added to or reduced their stakes in QMCO. State Street Corp increased its position in Quantum by 4.3% in the second 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 acquired a new position in Quantum during the 2nd quarter valued at about $372,000. Susquehanna Fundamental Investments LLC bought a new position in shares of Quantum in the 2nd quarter valued at about $381,000. Alyeska Investment Group L.P. bought a new position in shares of Quantum in the 2nd quarter valued at about $29,193,000. Finally, Bank of America Corp DE grew its position in shares of 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 buying an additional 149,645 shares during the period. Institutional investors own 63.66% of the company's stock.

About Quantum

Quantum Corporation NASDAQ: QMCO is a data storage and management company that provides technology for organizations handling large volumes of digital content. Its solutions are designed to help customers store, protect, manage and access unstructured data, including video, images, scientific information and other content-intensive files.

The company's product portfolio has included Scalar tape libraries and tape storage systems, DXi deduplication appliances, and software for data backup, archiving and disaster recovery.

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