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

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)'s stock price fell 2.4% on Wednesday . The company traded as low as $8.36 and last traded at $8.48. 10,696,553 shares changed hands during trading, a decline of 56% from the average session volume of 24,356,869 shares. The stock had previously closed at $8.69.

Wall Street Analysts Forecast Growth

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

QuantumScape Stock Performance

The company has a debt-to-equity ratio of 0.03, a current ratio of 16.40 and a quick ratio of 16.40. The stock's 50-day moving average price is $7.44 and its 200-day moving average price is $5.45. The company has a market cap of $5.06 billion, a P/E ratio of -10.37 and a beta of 4.43.

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

Insider Transactions at QuantumScape

In related news, CTO Timothy Holme sold 358,330 shares of the business's stock in a transaction dated Thursday, July 3rd. The stock was sold at an average price of $7.03, for a total value of $2,519,059.90. Following the sale, the chief technology officer directly owned 1,705,428 shares in the company, valued at approximately $11,989,158.84. The trade was a 17.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Michael O. Mccarthy III sold 500,000 shares of the company's stock in a transaction dated Friday, July 25th. The shares were sold at an average price of $11.60, for a total value of $5,800,000.00. Following the sale, the insider owned 1,467,183 shares in the company, valued at approximately $17,019,322.80. This represents a 25.42% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 4,089,468 shares of company stock valued at $35,534,411 over the last ninety days. Company insiders own 12.03% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Signaturefd LLC boosted its stake in QuantumScape by 2,086.1% in the 1st quarter. Signaturefd LLC now owns 6,121 shares of the company's stock worth $25,000 after purchasing an additional 5,841 shares in the last quarter. Heck Capital Advisors LLC purchased a new position in QuantumScape in the 4th quarter worth approximately $26,000. Federated Hermes Inc. lifted its position in QuantumScape by 660.0% in the 1st quarter. Federated Hermes Inc. now owns 6,262 shares of the company's stock valued at $26,000 after acquiring an additional 5,438 shares in the last quarter. Hollencrest Capital Management boosted its stake in QuantumScape by 333.3% during the 1st 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 last quarter. Finally, North Capital Inc. bought a new stake in shares of QuantumScape in the 2nd quarter worth $27,000. Hedge funds and other institutional investors 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.