QuantumScape (NYSE:QS) Shares Down 2.4% - Here's Why

Key Points

• QuantumScape's stock price fell by 2.4% during trading, reaching a low of $8.36, with a significant trading volume drop of 56% from the average.
• Recent analyst reports have resulted in a mixed outlook for QuantumScape, with target prices ranging from $2.50 to $11.00 and ratings including several "sell" and "hold" recommendations.
• Insiders have sold over 4 million shares in the past 90 days, indicating potential concerns about the company's stock performance among its leadership.

QuantumScape Corporation (NYSE:QS - Get Free Report) shares dropped 2.4% during trading on Wednesday . The company traded as low as $8.36 and last traded at $8.48. Approximately 10,696,553 shares traded hands during mid-day trading, a decline of 56% from the average daily volume of 24,356,869 shares. The stock had previously closed at $8.69.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on QS shares. TD Cowen upgraded QuantumScape to a "hold" rating in a research report on Monday, July 7th. The Goldman Sachs Group lowered their price target on QuantumScape from $3.00 to $2.50 and set a "sell" rating on the stock in a research report on Monday, April 28th. Finally, Robert W. Baird increased their price target on QuantumScape from $6.00 to $11.00 and gave the stock a "neutral" rating in a research report on Thursday, July 24th. Three analysts have rated the stock with a sell rating and seven have given a hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $5.90.

QuantumScape Stock Down 5.3%

The business has a fifty day simple moving average of $7.64 and a 200 day simple moving average of $5.51. The firm has a market cap of $4.95 billion, a price-to-earnings ratio of -10.17 and a beta of 4.43. The company has a debt-to-equity ratio of 0.03, a current ratio of 16.40 and a quick ratio of 16.40.

QuantumScape (NYSE:QS - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The company reported ($0.20) EPS for the quarter, meeting 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 firm earned ($0.25) earnings per share. As a group, equities analysts forecast that QuantumScape Corporation will post -0.82 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Michael O. Mccarthy III sold 500,000 shares of QuantumScape 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 completion of the transaction, the insider directly owned 1,467,183 shares in the company, valued at approximately $17,019,322.80. This trade represents a 25.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Fritz Prinz sold 929,813 shares of QuantumScape stock in a transaction on Friday, July 25th. The shares were sold at an average price of $11.62, for a total value of $10,804,427.06. Following the completion of the transaction, the director owned 161,343 shares of the company's stock, valued at approximately $1,874,805.66. This trade represents a 85.21% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 4,089,468 shares of company stock valued at $35,534,411. 12.03% of the stock is currently owned by insiders.

Institutional Trading of QuantumScape

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. M&T Bank Corp boosted its stake in shares of QuantumScape by 97.2% during the 1st quarter. M&T Bank Corp now owns 39,964 shares of the company's stock worth $166,000 after acquiring an additional 19,694 shares in the last quarter. Cambridge Investment Research Advisors Inc. increased its holdings in QuantumScape by 362.7% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 379,018 shares of the company's stock valued at $1,577,000 after purchasing an additional 297,097 shares in the last quarter. Raymond James Financial Inc. acquired a new stake in shares of QuantumScape during the fourth quarter valued at about $1,527,000. Private Advisory Group LLC lifted its position in shares of QuantumScape by 17.1% during the first quarter. Private Advisory Group LLC now owns 447,478 shares of the company's stock worth $1,862,000 after purchasing an additional 65,237 shares during the last quarter. Finally, Centiva Capital LP lifted its position in shares of QuantumScape by 479.0% during the fourth quarter. Centiva Capital LP now owns 558,715 shares of the company's stock worth $2,900,000 after purchasing an additional 462,218 shares during the last quarter. 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.