QuantumScape (NYSE:QS) Shares Down 13.4% - Should You Sell?

Key Points

• QuantumScape's shares dropped 13.4% during trading, with significant trading volume and a last trading price of $9.51.
• Several analysts have issued downgrades for QuantumScape, with UBS Group and Goldman Sachs setting a price target of $2.50.
• Insider transactions reveal that executives sold a combined total of 3.6 million shares worth about $29.7 million over the past three months.

QuantumScape Corporation (NYSE:QS - Get Free Report) shares fell 13.4% during trading on Tuesday . The stock traded as low as $9.38 and last traded at $9.51. 36,418,589 shares traded hands during mid-day trading, an increase of 54% from the average session volume of 23,578,178 shares. The stock had previously closed at $10.98.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on QS shares. UBS Group downgraded QuantumScape from a "neutral" rating to a "sell" rating and lowered their price objective for the company from $5.00 to $2.50 in a research report on Thursday, April 10th. The Goldman Sachs Group lowered their price objective on QuantumScape from $3.00 to $2.50 and set a "sell" rating on the stock in a research report on Monday, April 28th. Robert W. Baird lifted their target price on QuantumScape from $6.00 to $11.00 and gave the stock a "neutral" rating in a report on Thursday, July 24th. Finally, TD Cowen raised QuantumScape to a "hold" rating in a report on Monday, July 7th. Three equities research analysts have rated the stock with a sell rating and seven have assigned a hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $5.90.

QuantumScape Price Performance

The company has a debt-to-equity ratio of 0.03, a quick ratio of 16.66 and a current ratio of 16.66. The stock's 50 day simple moving average is $6.80 and its two-hundred day simple moving average is $5.29. The firm has a market capitalization of $5.26 billion, a PE ratio of -10.91 and a beta of 4.42.

QuantumScape (NYSE:QS - Get Free Report) last announced its quarterly earnings results on Wednesday, July 23rd. The company reported ($0.20) earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of ($0.20). The firm had revenue of $36.67 million for the quarter. During the same period in the prior year, the company earned ($0.25) EPS. On average, sell-side analysts forecast that QuantumScape Corporation will post -0.82 EPS for the current year.

Insiders Place Their Bets

In related news, insider Mohit Singh sold 465,000 shares of the business's stock in a transaction on Tuesday, July 8th. The shares were sold at an average price of $8.21, for a total value of $3,817,650.00. Following the completion of the sale, the insider directly owned 1,641,711 shares of the company's stock, valued at $13,478,447.31. The trade was a 22.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CTO Timothy Holme sold 358,330 shares of the business's stock in a transaction on Thursday, July 3rd. The shares were sold at an average price of $7.03, for a total transaction of $2,519,059.90. Following the completion of the sale, the chief technology officer directly owned 1,705,428 shares of the company's stock, valued at approximately $11,989,158.84. This trade represents a 17.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 3,589,468 shares of company stock worth $29,734,411 over the last 90 days. Corporate insiders own 12.03% of the company's stock.

Institutional Investors Weigh In On QuantumScape

Large investors have recently bought and sold shares of the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of QuantumScape by 456.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,759,334 shares of the company's stock valued at $19,799,000 after buying an additional 3,904,168 shares during the last quarter. Norges Bank acquired a new stake in shares of QuantumScape in the 4th quarter worth approximately $17,762,000. Vanguard Group Inc. lifted its stake in shares of QuantumScape by 9.0% in the 1st quarter. Vanguard Group Inc. now owns 35,351,974 shares of the company's stock worth $147,064,000 after acquiring an additional 2,911,362 shares during the period. Dimensional Fund Advisors LP raised its holdings in shares of QuantumScape by 55.2% in the 4th quarter. Dimensional Fund Advisors LP now owns 5,814,127 shares of the company's stock worth $30,183,000 after purchasing an additional 2,066,844 shares in the last quarter. Finally, Nuveen LLC acquired a new stake in shares of QuantumScape during the first quarter valued at approximately $2,819,000. 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.

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