QuantumScape (NYSE:QS) Sets New 52-Week Low - Here's Why

Key Points

• QuantumScape shares fell to a new 52-week low, trading as low as $3.69, below the prior close of $3.88.
• Analysts’ ratings are broadly neutral: six analysts rate the stock Hold, with an average price target of $7.36. Several firms recently lowered their targets, including Morgan Stanley, which cut its target to $4.50.
• The company reported a quarterly loss of $0.14 per share, beating the $0.17 loss analysts expected. Insiders sold nearly 295,000 shares over the past 90 days.

QuantumScape Corporation (NYSE:QS - Get Free Report) shares hit a new 52-week low during trading on Friday. The stock traded as low as $3.69 and last traded at $3.6650, with a volume of 3,127,126 shares trading hands. The stock had previously closed at $3.88.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on QS. Robert W. Baird cut their target price on QuantumScape from $8.00 to $6.00 and set a "neutral" rating for the company in a research note on Thursday, October 22nd. Morgan Stanley decreased their price target on QuantumScape from $8.50 to $4.50 and set an "equal weight" rating on the stock in a research note on Thursday, October 15th. William Blair raised QuantumScape to a "hold" rating in a report on Thursday, October 22nd. Finally, TD Cowen dropped their price objective on QuantumScape from $8.00 to $6.00 and set a "hold" rating for the company in a research report on Friday, July 24th. Six equities research analysts have rated the stock with a Hold rating. According to MarketBeat, QuantumScape presently has an average rating of "Hold" and an average target price of $7.36.

QuantumScape Stock Performance

The stock's 50-day moving average is $4.55 and its 200-day moving average is $6.40. The firm has a market capitalization of $2.30 billion, a price-to-earnings ratio of -4.57 and a beta of 2.83. The company has a current ratio of 21.14, a quick ratio of 21.14 and a debt-to-equity ratio of 0.02.

QuantumScape (NYSE:QS - Get Free Report) last announced its quarterly earnings results on Wednesday, October 21st. The company reported ($0.14) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.17) by $0.03. During the same quarter last year, the company earned ($0.18) EPS. QuantumScape's quarterly revenue was up .0% on a year-over-year basis. On average, analysts predict that QuantumScape Corporation will post -0.82 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CTO Timothy Holme sold 75,000 shares of QuantumScape stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $5.09, for a total transaction of $381,750.00. Following the sale, the chief technology officer directly owned 1,583,075 shares of the company's stock, valued at approximately $8,057,851.75. This trade represents a 4.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders sold 294,599 shares of company stock valued at $1,473,271 in the last ninety days. 3.93% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On QuantumScape

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP grew its stake in shares of QuantumScape by 134.6% in the first quarter. Dimensional Fund Advisors LP now owns 5,735,035 shares of the company's stock worth $36,570,000 after purchasing an additional 3,290,942 shares during the last quarter. Bank of New York Mellon Corp bought a new position in QuantumScape during the 2nd quarter worth $9,619,000. Russell Investments Group Ltd. lifted its holdings in QuantumScape by 181.0% during the 3rd quarter. Russell Investments Group Ltd. now owns 854,135 shares of the company's stock worth $3,967,000 after buying an additional 550,221 shares during the period. California State Teachers Retirement System lifted its holdings in QuantumScape by 23.3% during the 1st quarter. California State Teachers Retirement System now owns 491,725 shares of the company's stock worth $3,137,000 after buying an additional 93,079 shares during the period. Finally, AXQ Capital LP lifted its holdings in QuantumScape by 313.2% during the 2nd quarter. AXQ Capital LP now owns 463,653 shares of the company's stock worth $3,505,000 after buying an additional 351,451 shares during the period. 29.87% of the stock is currently owned by institutional investors and hedge funds.

About QuantumScape

QuantumScape Corporation develops solid-state lithium-metal battery technology, primarily for use in electric vehicles. Its battery design replaces the conventional liquid electrolyte found in many lithium-ion batteries with a solid separator, with the goal of supporting higher energy density, faster charging and improved safety. Founded in 2010 and headquartered in San Jose, California, the company focuses on researching, testing and scaling its battery technology rather than selling mass-market batteries.

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