Short Interest in QuantumScape Corporation (NYSE:QS) Declines By 25.6%

Key Points

• QuantumScape experienced a significant 25.6% decline in short interest during July, decreasing from 67.36 million shares to 50.13 million shares, with about 9.4% of its shares currently sold short.
• Insider sales have been notable, with insider Mohit Singh selling 465,000 shares for approximately $3.82 million and insider Michael O. Mccarthy III selling 500,000 shares for about $5.80 million, both resulting in significant reductions in their overall stakes in the company.
• Institutional investors have shown increased interest, with firms like Signaturefd LLC raising their positions by over 2,000% during the first quarter, as hedge funds now own approximately 29.87% of QuantumScape's stock.

QuantumScape Corporation (NYSE:QS - Get Free Report) saw a significant drop in short interest in July. As of July 31st, there was short interest totaling 50,130,000 shares, adropof25.6% from the July 15th total of 67,360,000 shares. Approximately9.4% of the shares of the stock are sold short. Based on an average daily trading volume, of 41,010,000 shares, the short-interest ratio is presently 1.2 days. Based on an average daily trading volume, of 41,010,000 shares, the short-interest ratio is presently 1.2 days. Approximately9.4% of the shares of the stock are sold short.

QuantumScape Trading Down 1.5%

Shares of QS stock traded down $0.12 during mid-day trading on Monday, hitting $8.04. 12,474,769 shares of the company's stock were exchanged, compared to its average volume of 31,656,740. QuantumScape has a fifty-two week low of $3.40 and a fifty-two week high of $15.03. The stock has a market cap of $4.55 billion, a price-to-earnings ratio of -9.35 and a beta of 4.43. The company has a quick ratio of 16.40, a current ratio of 16.40 and a debt-to-equity ratio of 0.03. The stock has a 50-day simple moving average of $8.59 and a two-hundred day simple moving average of $5.78.

QuantumScape (NYSE:QS - Get Free Report) last issued its earnings results on Wednesday, July 23rd. The company reported ($0.20) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.20). The firm had revenue of $36.67 million during the quarter. During the same quarter in the prior year, the firm earned ($0.25) EPS. Equities analysts expect that QuantumScape will post -0.82 EPS for the current fiscal year.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the company. TD Cowen upgraded QuantumScape to a "hold" rating in a report on Monday, July 7th. Robert W. Baird raised their price objective on QuantumScape from $6.00 to $11.00 and gave the stock a "neutral" rating in a report on Thursday, July 24th. Finally, The Goldman Sachs Group decreased their price objective on QuantumScape from $3.00 to $2.50 and set a "sell" rating on the stock in a report on Monday, April 28th. Seven equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Reduce" and a consensus target price of $5.90.

Insider Buying and Selling

In other QuantumScape news, insider Mohit Singh sold 465,000 shares of the firm's stock in a transaction on Tuesday, July 8th. The stock was sold at an average price of $8.21, for a total transaction of $3,817,650.00. Following the completion of the transaction, the insider owned 1,641,711 shares of the company's stock, valued at approximately $13,478,447.31. This trade represents a 22.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Michael O. Mccarthy III sold 500,000 shares of the firm's stock in a transaction on Friday, July 25th. The stock was sold at an average price of $11.60, for a total value of $5,800,000.00. Following the transaction, the insider directly owned 1,467,183 shares of the company's stock, valued at $17,019,322.80. The trade was a 25.42% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 3,956,517 shares of company stock worth $34,977,013. 5.48% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Signaturefd LLC boosted its holdings in QuantumScape by 2,086.1% in the first quarter. Signaturefd LLC now owns 6,121 shares of the company's stock valued at $25,000 after acquiring an additional 5,841 shares during the last quarter. Russell Investments Group Ltd. boosted its holdings in QuantumScape by 685.5% in the second quarter. Russell Investments Group Ltd. now owns 3,794 shares of the company's stock valued at $25,000 after acquiring an additional 3,311 shares during the last quarter. Heck Capital Advisors LLC purchased a new position in QuantumScape in the fourth quarter valued at about $26,000. Federated Hermes Inc. raised its position in QuantumScape by 660.0% in the first quarter. Federated Hermes Inc. now owns 6,262 shares of the company's stock valued at $26,000 after purchasing an additional 5,438 shares during the period. Finally, Hollencrest Capital Management raised its position in QuantumScape by 333.3% in the first quarter. Hollencrest Capital Management now owns 6,500 shares of the company's stock valued at $27,000 after purchasing an additional 5,000 shares during the period. Institutional investors and hedge funds own 29.87% of the company's stock.

About QuantumScape

QuantumScape Corporation, a research and development stage company, focuses on the development and commercialization of solid-state lithium-metal batteries for electric vehicles and other applications. The company was founded in 2010 and is headquartered in San Jose, California.