Quantum (NASDAQ:QMCO) Upgraded to "Outperform" at Northland Securities

Key Points

• Northland Securities upgraded Quantum to “outperform” from “market perform” and set a $24 price target, implying roughly 25% upside. Overall, analysts have a “Moderate Buy” consensus, with four Buy ratings and one Sell rating.
• Quantum reported adjusted EPS of $0.18 and revenue of $80.8 million, beating estimates of a $0.17 loss and $75.05 million in revenue. The company also reported zero debt and guided for fiscal Q2 2027 adjusted EPS of $0.02 to $0.22.
• Shares rose sharply to $19.18, but the company’s $155.3 million GAAP net loss, high stock volatility, and recent insider selling remain risks for investors.

Quantum (NASDAQ:QMCO - Get Free Report) was upgraded by analysts at Northland Securities from a "market perform" rating to an "outperform" rating in a report issued on Tuesday. The brokerage presently has a $24.00 price target on the stock. Northland Securities' price objective indicates a potential upside of 25.12% from the stock's current price.

Several other equities analysts have also recently weighed in on QMCO. Weiss Ratings reissued a "sell (d-)" rating on shares of Quantum in a report on Wednesday, June 24th. Litchfield Hills Research began coverage on shares of Quantum in a research report on Monday. They set a "buy" rating on the stock. Lake Street Capital reiterated a "buy" rating and set a $24.00 price objective on shares of Quantum in a research note on Tuesday. Finally, Needham & Company LLC started coverage on Quantum in a research report on Wednesday, June 3rd. They set a "buy" rating on the stock. Four analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, Quantum currently has a consensus rating of "Moderate Buy" and an average target price of $24.00.

Quantum Stock Performance

Shares of NASDAQ QMCO traded up $7.40 during mid-day trading on Tuesday, hitting $19.18. 12,615,281 shares of the stock traded hands, compared to its average volume of 850,659. Quantum has a 52 week low of $4.19 and a 52 week high of $19.15. The stock has a fifty day moving average price of $11.98 and a 200-day moving average price of $8.50. The company has a market cap of $755.77 million, a price-to-earnings ratio of -2.34 and a beta of 2.97.

Quantum (NASDAQ:QMCO - Get Free Report) last posted its quarterly earnings data on Monday, August 10th. The company reported $0.18 earnings per share for the quarter, beating analysts' consensus estimates 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, sell-side analysts predict that Quantum will post -0.28 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Bank of America Corp DE boosted its stake in Quantum by 337.5% in the third quarter. Bank of America Corp DE now owns 2,896 shares of the company's stock valued at $29,000 after acquiring an additional 2,234 shares in the last quarter. BNP Paribas Financial Markets boosted its position in Quantum by 322.1% during the 3rd quarter. BNP Paribas Financial Markets now owns 3,461 shares of the company's stock worth $34,000 after purchasing an additional 2,641 shares during the period. NBC Securities Inc. bought a new stake in shares of Quantum in the fourth quarter worth $26,000. Raymond James Financial Inc. acquired a new stake in shares of Quantum in the 2nd quarter valued at about $46,000. Finally, Geode Capital Management LLC increased its holdings in Quantum by 9.1% in the second quarter. Geode Capital Management LLC now owns 69,384 shares of the company's stock valued at $692,000 after buying an additional 5,806 shares during the last quarter. Institutional investors and hedge funds own 63.66% of the company's stock.

Trending Headlines about Quantum

Here are the key news stories impacting Quantum this week:

• Positive Sentiment: Strong earnings and revenue beat: Quantum reported adjusted EPS of $0.18, versus analyst expectations for a $0.17 loss, while revenue reached $80.8 million—26% above the prior-year period and ahead of the roughly $75 million consensus estimate. Quantum Corp. Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Improved operating performance: Non-GAAP adjusted net income was $4.0 million and adjusted EBITDA was $8.0 million. Operating expenses declined year over year, supporting investor confidence in the company’s cost-control efforts. Quantum Reports Fiscal First Quarter 2027 Financial Results
• Positive Sentiment: Debt eliminated and guidance raised: Quantum reported zero outstanding debt and $54.6 million in cash, cash equivalents and restricted cash at quarter-end. Fiscal Q2 2027 revenue guidance of $80 million to $84 million and adjusted EPS guidance of $0.02 to $0.22 both exceeded consensus estimates. Quantum Reports $80.8 Million Revenue for Fiscal Q1 2027
• Positive Sentiment: Speculative demand increased: Investors purchased approximately 5,709 QMCO call options, about 813% above the average daily volume, signaling heightened bullish trading interest.
• Neutral Sentiment: GAAP results remain weak: Quantum posted a $155.3 million GAAP net loss, or $7.06 per share, largely because of one-time debt-elimination charges. The discrepancy between GAAP and adjusted results may contribute to continued volatility. Quantum Corp. Stock Rockets on Q1 Performance
• Negative Sentiment: Insider selling is a cautionary signal: Company insiders reported four sales and no purchases during the past six months, including sales by the CEO and other senior executives.

About Quantum

Quantum Corporation NASDAQ: QMCO is a technology company that develops and delivers data management and storage solutions for businesses and organizations worldwide. The company's product portfolio includes hardware, software and cloud-based offerings designed to address backup, archive, primary storage and long-term retention needs. Quantum's solutions are geared toward data-intensive environments such as media and entertainment, surveillance, government, education and healthcare, where large volumes of digital content must be reliably stored, managed and accessed.

Quantum's flagship products include the StorNext® data management platform, which provides high-performance shared file storage and workflow acceleration, and the DXi® series of deduplication appliances, which optimize backup and recovery by reducing storage footprints and data transfer times.

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.

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