QuantumScape (NYSE:QS) Sets New 52-Week Low - Time to Sell?

Key Points

• QuantumScape shares hit a new 52-week low of $4.76 during Thursday trading, below both their 50-day average of $5.55 and 200-day average of $6.67.
• Analyst sentiment is negative: TD Cowen cut its price target from $8 to $6, while the broader analyst consensus is “Reduce” with a $9.47 target price.
• The company continues to report losses, posting quarterly EPS of -$0.16, while insiders sold 321,644 shares worth nearly $2 million over the past three months.

QuantumScape Corporation (NYSE:QS - Get Free Report) shares reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $4.76 and last traded at $4.8050, with a volume of 4193112 shares. The stock had previously closed at $4.91.

Wall Street Analyst Weigh In

Separately, TD Cowen reduced their target price on shares of QuantumScape from $8.00 to $6.00 and set a "hold" rating for the company in a research note on Friday, July 24th. Five investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $9.47.

QuantumScape Stock Performance

The company's 50-day simple moving average is $5.55 and its 200 day simple moving average is $6.67. The stock has a market cap of $3.06 billion, a P/E ratio of -6.06 and a beta of 2.68. 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 released its earnings results on Wednesday, July 22nd. The company reported ($0.16) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.18) by $0.02. QuantumScape's quarterly revenue was up .0% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.20) earnings per share. As a group, sell-side analysts expect that QuantumScape Corporation will post -0.82 EPS for the current fiscal year.

Insider Buying and Selling at QuantumScape

In other news, CTO Timothy Holme sold 102,991 shares of QuantumScape stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $7.28, for a total transaction of $749,774.48. Following the sale, the chief technology officer directly owned 1,712,506 shares in the company, valued at $12,467,043.68. The trade was a 5.67% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Kevin Hettrich sold 9,800 shares of the business's stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $7.28, for a total transaction of $71,344.00. Following the completion of the transaction, the chief financial officer directly owned 1,816,257 shares in the company, valued at $13,222,350.96. This trade represents a 0.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 321,644 shares of company stock worth $1,998,959. Insiders own 3.93% of the company's stock.

Institutional Trading of QuantumScape

Several hedge funds have recently added to or reduced their stakes in QS. Geode Capital Management LLC lifted its stake in QuantumScape by 16.7% in the fourth quarter. Geode Capital Management LLC now owns 8,327,604 shares of the company's stock valued at $86,794,000 after purchasing an additional 1,189,748 shares during the last quarter. Dimensional Fund Advisors LP increased its position in 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 buying an additional 3,290,942 shares during the last quarter. Norges Bank purchased a new stake in QuantumScape in the fourth quarter worth $29,321,000. Bank of New York Mellon Corp bought a new stake in shares of QuantumScape in the second quarter valued at $9,619,000. Finally, Clear Street Group Inc. bought a new stake in shares of QuantumScape in the fourth quarter valued at $10,314,000. Institutional investors own 29.87% of the company's stock.

About QuantumScape

QuantumScape Corporation NYSE: QS is a battery technology company developing solid-state lithium-metal batteries for electric vehicles and other energy-storage applications. Its technology is designed to replace the liquid electrolyte used in conventional lithium-ion batteries with a solid ceramic separator, with the goal of improving energy density, charging performance, safety and operating range.

The company is focused on designing, testing and scaling prototype cells rather than selling mass-produced batteries.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.