QuantumScape Corporation (NYSE:QS) Given Average Rating of "Reduce" by Analysts

Key Points

• QuantumScape currently has a consensus analyst rating of "Reduce", with one sell rating and five hold ratings across six covering firms. The average 12-month price target is about $11.13.
• The company recently beat Q2 EPS expectations by reporting a smaller-than-expected loss of $0.16 per share, and it also posted $10.8 million in customer billings, signaling some progress toward commercialization.
• Despite the earnings beat, the stock has been pressured by concerns over slow profitability improvement, an early commercialization timeline, and broader weakness in tech and solid-state battery names. QuantumScape shares fell to around $4.86, near their 52-week low.

QuantumScape Corporation (NYSE:QS - Get Free Report) has received a consensus recommendation of "Reduce" from the six ratings firms that are covering the firm, Marketbeat reports. One research analyst has rated the stock with a sell rating and five have given a hold rating to the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $11.1333.

Separately, TD Cowen reissued a "hold" rating on shares of QuantumScape in a research report on Friday.

Key Stories Impacting QuantumScape

Here are the key news stories impacting QuantumScape this week:

• Positive Sentiment: QuantumScape beat Q2 EPS expectations, reported a narrower loss, and posted $10.8 million in customer billings, which suggests progress toward commercialization. QuantumScape Q2 Earnings Beat Estimates on Eagle Line Gains
• Positive Sentiment: The company highlighted expanding opportunities beyond EVs, including Honda, Volkswagen’s PowerCo, AI data centers, aerospace, and defense, which could broaden its long-term addressable market. QS Q2 Earnings Call Focuses on Honda and New Markets
• Neutral Sentiment: Options activity spiked ahead of and around earnings, signaling traders were expecting a large move but not necessarily giving a directional read on fundamentals.
• Negative Sentiment: Despite the earnings beat, shares slid as investors focused on concerns including limited profitability improvement, the still-early commercialization timeline, and questions around the strength of key partnerships. Deeper dive: why QuantumScape stock's post-earnings decline makes sense
• Negative Sentiment: Analysts and market commentary also pointed to a broader selloff in tech and solid-state battery stocks, which added pressure and helped drive QS to 52-week lows. Why Did SPCX, ORCL, QS Stocks Plunge To 52-Week Lows Today?
• Negative Sentiment: Some commentary argues the stock remains expensive relative to fundamentals and that key customer support, especially around PowerCo, may be less robust than investors had hoped. QuantumScape: Plan Keeps Changing While The Clock Is Ticking

Insider Buying and Selling

In other news, CFO Kevin Hettrich sold 9,800 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the chief financial officer owned 1,816,257 shares of the company's stock, valued at approximately $13,222,350.96. This trade represents a 0.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CTO Timothy Holme sold 102,991 shares of the firm's 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 transaction, the chief technology officer directly owned 1,712,506 shares of the company's stock, valued at approximately $12,467,043.68. This represents a 5.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 737,540 shares of company stock worth $5,967,115 in the last quarter. Insiders own 3.93% of the company's stock.

Hedge Funds Weigh In On QuantumScape

Hedge funds have recently added to or reduced their stakes in the business. Kohmann Bosshard Financial Services LLC acquired a new position in shares of QuantumScape in the 4th quarter valued at about $25,000. Russell Investments Group Ltd. grew its holdings in QuantumScape by 685.5% in the 2nd quarter. Russell Investments Group Ltd. now owns 3,794 shares of the company's stock worth $25,000 after buying an additional 3,311 shares in the last quarter. Albion Financial Group UT increased its holdings in shares of QuantumScape by 200.0% during the fourth quarter. Albion Financial Group UT now owns 3,000 shares of the company's stock valued at $31,000 after purchasing an additional 2,000 shares during the period. CoreCap Advisors LLC increased its stake in QuantumScape by 373.6% during the 4th quarter. CoreCap Advisors LLC now owns 3,893 shares of the company's stock valued at $41,000 after buying an additional 3,071 shares during the period. Finally, Danske Bank A S acquired a new position in shares of QuantumScape during the fourth quarter valued at approximately $48,000. Institutional investors and hedge funds own 29.87% of the company's stock.

QuantumScape Trading Down 5.0%

QS traded down $0.25 during midday trading on Friday, hitting $4.86. The company's stock had a trading volume of 3,558,479 shares, compared to its average volume of 19,525,516. QuantumScape has a 52-week low of $4.85 and a 52-week high of $19.07. The firm has a 50-day moving average price of $7.40 and a two-hundred day moving average price of $7.72. The firm has a market cap of $2.99 billion, a P/E ratio of -5.97 and a beta of 2.61. 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, July 22nd. The company reported ($0.16) earnings per share for the quarter, beating analysts' consensus estimates of ($0.18) by $0.02. The business's revenue for the quarter was up .0% compared to the same quarter last year. During the same quarter last year, the business posted ($0.20) earnings per share. On average, research analysts anticipate that QuantumScape will post -0.82 earnings per share for the current year.

About QuantumScape

QuantumScape Corporation is a development-stage company specializing in the research and commercialization of next-generation solid-state lithium-metal batteries for electric vehicles. The company's core technology replaces the traditional liquid electrolyte with a solid ceramic separator, aiming to deliver higher energy density, faster charging times and enhanced safety compared to conventional lithium-ion cells. QuantumScape's product roadmap focuses on enabling electric vehicle manufacturers to extend driving range and reduce charging downtime, addressing key barriers to widespread EV adoption.

Founded in 2010 and headquartered in San Jose, California, QuantumScape has attracted significant strategic investment and formed partnerships with leading automotive OEMs.

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