QuantumScape (NYSE:QS) Shares Down 2% - Time to Sell?

Key Points

• QuantumScape's shares fell by 2%, trading at $8.17 after previously closing at $8.33, with a notable 86% decline in trading volume from the average.
• Analysts have mixed views, with TD Cowen raising their rating to "hold" and a price target increased to $11.00, while the average analyst rating remains a "Reduce" with a target of $5.90.
• Insider selling increased significantly, with notable transactions including Michael O. McCarthy III offloading 500,000 shares at an average price of $11.60, representing a 25.42% decrease in their position.

QuantumScape Corporation (NYSE:QS - Get Free Report) shares dropped 2% during mid-day trading on Wednesday . The company traded as low as $8.16 and last traded at $8.17. Approximately 3,424,857 shares traded hands during mid-day trading, a decline of 86% from the average daily volume of 24,073,680 shares. The stock had previously closed at $8.33.

Wall Street Analyst Weigh In

QS has been the topic of a number of recent analyst reports. TD Cowen raised QuantumScape to a "hold" rating in a research report on Monday, July 7th. Robert W. Baird upped their target price on QuantumScape from $6.00 to $11.00 and gave the company a "neutral" rating in a research report on Thursday, July 24th. Seven equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Reduce" and an average price target of $5.90.

QuantumScape Stock Performance

The stock has a market capitalization of $4.56 billion, a P/E ratio of -9.39 and a beta of 4.43. The stock has a 50 day moving average of $8.67 and a 200 day moving average of $5.80. The company has a debt-to-equity ratio of 0.03, a quick ratio of 16.40 and a current ratio of 16.40.

QuantumScape (NYSE:QS - Get Free Report) last issued its quarterly earnings data on Wednesday, July 23rd. The company reported ($0.20) EPS for the quarter, hitting analysts' consensus estimates of ($0.20). The company had revenue of $36.67 million for the quarter. During the same period in the prior year, the firm posted ($0.25) EPS. Equities analysts predict that QuantumScape Corporation will post -0.82 EPS for the current year.

Insider Buying and Selling

In other QuantumScape news, insider Michael O. Mccarthy III sold 500,000 shares of the business's stock in a transaction on Friday, July 25th. The stock was sold at an average price of $11.60, for a total transaction of $5,800,000.00. Following the completion of the transaction, the insider owned 1,467,183 shares in the company, valued at approximately $17,019,322.80. The trade was a 25.42% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Mohit Singh sold 465,000 shares of the business's stock in a transaction on Tuesday, July 8th. The stock was sold at an average price of $8.21, for a total value of $3,817,650.00. Following the transaction, the insider owned 1,641,711 shares of the company's stock, valued at $13,478,447.31. This trade represents a 22.07% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 3,956,517 shares of company stock valued at $34,977,013 in the last 90 days. Corporate insiders own 5.48% of the company's stock.

Institutional Trading of QuantumScape

Several institutional investors have recently modified their holdings of QS. Signaturefd LLC lifted its holdings in shares of 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 buying an additional 5,841 shares during the period. Russell Investments Group Ltd. lifted its holdings in shares of 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 buying an additional 3,311 shares during the period. Heck Capital Advisors LLC acquired a new stake in shares of QuantumScape in the fourth quarter valued at $26,000. Federated Hermes Inc. lifted its holdings in shares of 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 buying an additional 5,438 shares during the period. Finally, Hollencrest Capital Management lifted its holdings in shares of 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 buying an additional 5,000 shares during the period. Institutional investors and hedge funds own 29.87% of the company's stock.

QuantumScape Company Profile

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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