QuantumScape (NYSE:QS) Shares Down 6.4% - Here's What Happened

Key Points

• QuantumScape shares fell 6.4% to approximately $4.60 in mid-day trading, with trading volume significantly below its average.
• TD Cowen cut its price target from $8 to $6 and maintained a “Hold” rating; analysts’ consensus rating is “Reduce,” with an average price target of $9.47.
• Insiders have sold 321,644 shares worth nearly $2 million over the past 90 days, while institutional investors—including Dimensional Fund Advisors and Geode Capital—have increased their holdings.

QuantumScape Corporation (NYSE:QS - Get Free Report) dropped 6.4% during mid-day trading on Monday. The stock traded as low as $4.56 and last traded at $4.5950. Approximately 7,016,183 shares were traded during mid-day trading, a decline of 63% from the average daily volume of 18,793,369 shares. The stock had previously closed at $4.91.

Wall Street Analyst Weigh In

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

QuantumScape Trading Down 6.4%

The company has a market capitalization of $2.84 billion, a P/E ratio of -5.67 and a beta of 2.68. The stock's 50 day moving average is $5.52 and its 200-day moving average is $6.64. The company has a debt-to-equity ratio of 0.02, a current ratio of 21.14 and a quick ratio of 21.14.

QuantumScape (NYSE:QS - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The company reported ($0.16) EPS for the quarter, topping the consensus estimate of ($0.18) by $0.02. The firm's revenue for the quarter was up .0% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.20) earnings per share. As a group, equities research analysts anticipate that QuantumScape Corporation will post -0.82 earnings per share for the current year.

Insider Activity at QuantumScape

In other QuantumScape news, CTO Timothy Holme sold 45,000 shares of the firm's stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $5.09, for a total transaction of $229,050.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Kevin Hettrich sold 9,800 shares of the business's stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $7.28, for a total transaction of $71,344.00. Following the sale, the chief financial officer owned 1,816,257 shares in the company, valued at approximately $13,222,350.96. This trade represents a 0.54% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 321,644 shares of company stock worth $1,998,959 over the last 90 days. 3.93% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of 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 acquiring an additional 3,290,942 shares during the last quarter. Norges Bank purchased a new position in QuantumScape in the fourth quarter worth about $29,321,000. Bank of New York Mellon Corp bought a new position in shares of QuantumScape in the second quarter worth approximately $9,619,000. Geode Capital Management LLC lifted its stake in shares of QuantumScape by 16.7% in the fourth quarter. Geode Capital Management LLC now owns 8,327,604 shares of the company's stock worth $86,794,000 after buying an additional 1,189,748 shares in the last quarter. Finally, Clear Street Group Inc. bought a new position in shares of QuantumScape during the fourth quarter valued at $10,314,000. 29.87% of the stock is owned by hedge funds and other institutional investors.

QuantumScape Company Profile

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.

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