QuantumScape (NYSE:QS) Shares Gap Up - Should You Buy?

Key Points

• QuantumScape shares opened higher at $4.75 versus the prior close of $4.52, but later traded at $4.4350 on volume of nearly 3 million shares.
• TD Cowen cut its price target from $8 to $6 and maintained a “Hold” rating; five analysts rate the stock Hold, with an average price target of $9.47.
• The company remains development-stage and unprofitable, although it beat its latest quarterly EPS estimate. Insiders have sold 294,599 shares worth about $1.47 million over the past 90 days.

QuantumScape Corporation (NYSE:QS - Get Free Report) shares gapped up before the market opened on Thursday. The stock had previously closed at $4.52, but opened at $4.75. QuantumScape shares last traded at $4.4350, with a volume of 2,964,210 shares traded.

Analyst Ratings Changes

Separately, TD Cowen decreased their price target on shares of QuantumScape from $8.00 to $6.00 and set a "hold" rating on the stock in a research note on Friday, July 24th. Five equities research analysts have rated the stock with a Hold rating, According to MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $9.47.

QuantumScape Price Performance

The company has a debt-to-equity ratio of 0.02, a current ratio of 21.14 and a quick ratio of 21.14. The stock has a market capitalization of $2.73 billion, a price-to-earnings ratio of -5.45 and a beta of 2.83. The stock has a 50 day moving average price of $5.39 and a 200-day moving average price of $6.51.

QuantumScape (NYSE:QS - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The company reported ($0.16) EPS for the quarter, beating the consensus estimate of ($0.18) by $0.02. The business's quarterly revenue was up .0% on a year-over-year basis. During the same period last year, the company earned ($0.20) earnings per share. On average, analysts forecast that QuantumScape Corporation will post -0.82 earnings per share for the current year.

Insider Activity at QuantumScape

In other news, CTO Timothy Holme sold 45,000 shares of the stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $4.54, for a total value of $204,300.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders have sold 294,599 shares of company stock valued at $1,473,271 in the last ninety days. 3.93% of the stock is owned by corporate insiders.

Institutional Trading of QuantumScape

Several large investors have recently bought and sold shares of the business. TD Waterhouse Canada Inc. raised its holdings in QuantumScape by 101.5% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 5,361 shares of the company's stock valued at $41,000 after acquiring an additional 2,700 shares during the last quarter. Vestor Capital LLC grew its position in shares of QuantumScape by 255.2% in the first quarter. Vestor Capital LLC now owns 8,000 shares of the company's stock valued at $51,000 after purchasing an additional 5,748 shares in the last quarter. Onyx Bridge Wealth Group LLC acquired a new stake in shares of QuantumScape in the first quarter valued at approximately $65,000. Cobblestone Asset Management LLC purchased a new position in QuantumScape during the first quarter worth approximately $68,000. Finally, QRG Capital Management Inc. acquired a new position in QuantumScape during the first quarter worth $74,000. Hedge funds and other institutional investors own 29.87% of the company's stock.

About QuantumScape

QuantumScape Corporation is a development-stage battery technology company focused on solid-state lithium-metal batteries for electric vehicles and other applications. Its technology is designed to replace conventional lithium-ion battery components, including the graphite anode, with a lithium-metal anode and a solid ceramic separator.

The company is developing battery cells intended to offer higher energy density, faster charging, improved safety and longer operating range than many conventional lithium-ion batteries.

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