QuantumScape Corporation (NYSE:QS) Given Average Recommendation of "Reduce" by Brokerages

Key Points

• Consensus "Reduce": Eight brokerages cover QuantumScape with a consensus recommendation of Reduce (2 sell, 6 hold) and an average 12‑month price target of $9.90.
• Operational update: QuantumScape beat Q1 EPS (-$0.16 vs. -$0.18), said its Eagle Line pilot installation is running with roughly $11M in partner billings and is pivoting toward new end markets (AI data centers, robotics, aviation), but it remains pre‑revenue with a Q1 net loss around $100.8M, making execution and cash runway key risks.
• Insider selling: Insiders have sold 666,925 shares valued at $4.48M in the last 90 days (including CTO Timothy Holme and director Jeffrey Straubel), leaving insiders with about 5.48% ownership.

QuantumScape Corporation (NYSE:QS - Get Free Report) has received a consensus recommendation of "Reduce" from the eight ratings firms that are presently covering the firm, MarketBeat.com reports. Two analysts have rated the stock with a sell rating and six have issued a hold rating on the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $9.90.

Several brokerages have issued reports on QS. Morgan Stanley lowered their price target on shares of QuantumScape from $12.00 to $8.50 and set an "equal weight" rating on the stock in a research note on Wednesday, February 18th. HSBC upgraded shares of QuantumScape from a "reduce" rating to a "hold" rating and reduced their price objective for the stock from $10.50 to $8.30 in a research note on Wednesday, February 18th. Robert W. Baird set a $12.00 price objective on QuantumScape in a report on Thursday, February 12th. Finally, TD Cowen reaffirmed a "hold" rating on shares of QuantumScape in a research report on Wednesday, February 18th.

Insiders Place Their Bets

In other news, CTO Timothy Holme sold 127,077 shares of the company's stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $7.10, for a total transaction of $902,246.70. Following the sale, the chief technology officer owned 1,122,348 shares in the company, valued at $7,968,670.80. This represents a 10.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Jeffrey B. Straubel sold 27,106 shares of the stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $7.10, for a total value of $192,452.60. Following the completion of the sale, the director directly owned 212,616 shares of the company's stock, valued at approximately $1,509,573.60. The trade was a 11.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 666,925 shares of company stock valued at $4,483,577 in the last 90 days. 5.48% of the stock is currently owned by insiders.

Institutional Trading of QuantumScape

A number of large investors have recently added to or reduced their stakes in the company. VSM Wealth Advisory LLC boosted its position in shares of QuantumScape by 46.8% during the 3rd quarter. VSM Wealth Advisory LLC now owns 2,352 shares of the company's stock worth $29,000 after acquiring an additional 750 shares in the last quarter. Vontobel Holding Ltd. raised its position in QuantumScape by 0.7% during the third quarter. Vontobel Holding Ltd. now owns 120,753 shares of the company's stock valued at $1,488,000 after purchasing an additional 810 shares in the last quarter. Coldstream Capital Management Inc. raised its position in QuantumScape by 8.2% during the third quarter. Coldstream Capital Management Inc. now owns 12,408 shares of the company's stock valued at $153,000 after purchasing an additional 939 shares in the last quarter. Wilmington Savings Fund Society FSB lifted its stake in QuantumScape by 67.0% during the third quarter. Wilmington Savings Fund Society FSB now owns 2,505 shares of the company's stock worth $31,000 after purchasing an additional 1,005 shares during the last quarter. Finally, CWM LLC lifted its stake in QuantumScape by 69.1% during the third quarter. CWM LLC now owns 2,625 shares of the company's stock worth $32,000 after purchasing an additional 1,073 shares during the last quarter. Institutional investors and hedge funds own 29.87% of the company's stock.

Key Headlines Impacting QuantumScape

Here are the key news stories impacting QuantumScape this week:

• Positive Sentiment: Q1 beat and manufacturing progress — QuantumScape reported Q1 EPS of -$0.16 vs. -$0.18 expected, and management said the Eagle Line pilot installation was completed and start-up operations began; partner billings reached ~$11M, which supports near-term operational momentum. QuantumScape Q1 Earnings Beat Estimates on Eagle Line Startup Progress
• Positive Sentiment: Strategic pivot and new end markets — Management flagged rising interest outside autos (AI data centers, robotics, aviation, defense), which expands potential addressable markets and was cited as a key reason for recent rallies. QuantumScape Stock Jumps 25%. It's Joining the AI Data Center Boom.
• Positive Sentiment: Options-market bullishness — Unusually large call buying (tens of thousands of calls) shows traders positioning for further upside around the earnings/strategy news, which can amplify intraday moves.
• Neutral Sentiment: High intraday volatility and volume — Heavy trading and unusual volume amplified swings (both up and down) as short-covering, option flows and retail interest interacted with earnings headlines. QuantumScape’s stock is soaring—Here’s what may be driving the extreme rally.
• Neutral Sentiment: Technical bounce but mixed trend — The stock briefly cleared shorter-term moving averages (100-day/50-day) on the headlines, which attracted momentum traders, but remains below longer-term resistance. QuantumScape stock just transformed into an AI infrastructure play
• Negative Sentiment: Still pre-revenue with substantial losses — QuantumScape remains a pre-revenue company (no commercial batteries sold); Q1 net loss (~$100.8M) and the absence of production revenue keep execution and cash runway as key risk factors that limit valuation support. No Products and No Revenue, but QuantumScape Is Ready to Take On the AI Boom
• Negative Sentiment: Valuation skepticism and technical headwinds — Heavy short interest, a 200-day moving average well above the current price and a longer-term share decline leave the stock vulnerable to profit-taking once the initial euphoria fades. Assessing QuantumScape (QS) Valuation After Q1 Loss And Eagle Line And Licensing Updates

QuantumScape Price Performance

Shares of QS opened at $7.21 on Friday. The stock has a market capitalization of $4.41 billion, a P/E ratio of -8.90 and a beta of 2.54. QuantumScape has a twelve month low of $3.75 and a twelve month high of $19.07. The company has a 50 day moving average of $6.81 and a 200-day moving average of $10.43. The company has a quick ratio of 21.14, a current ratio of 21.14 and a debt-to-equity ratio of 0.02.

QuantumScape (NYSE:QS - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The company reported ($0.16) EPS for the quarter, topping analysts' consensus estimates of ($0.18) by $0.02. During the same quarter in the prior year, the business posted ($0.21) earnings per share. As a group, equities research analysts forecast that QuantumScape will post -0.82 EPS for the current fiscal 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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