QuantumScape (NYSE:QS) Shares Gap Up - Here's Why

Key Points

• QuantumScape's stock price rose from a previous close of $8.30 to an opening of $9.00 on Tuesday, with a trading volume of nearly 9.8 million shares.
• Analysts have mixed opinions, with Goldman Sachs lowering their target price to $2.50 and a "sell" rating, while Robert W. Baird increased their target to $11.00 with a "neutral" rating.
• Insider sales were notable, with Director Fritz Prinz and insider Michael O. Mccarthy III selling significant shares, representing a decrease in their positions of 30.31% and 25.42%, respectively.

QuantumScape Corporation (NYSE:QS - Get Free Report)'s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $8.30, but opened at $9.00. QuantumScape shares last traded at $8.89, with a volume of 9,825,683 shares.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on QS. The Goldman Sachs Group lowered their target price on QuantumScape from $3.00 to $2.50 and set a "sell" rating for the company in a report on Monday, April 28th. Robert W. Baird upped 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. UBS Group lowered QuantumScape from a "neutral" rating to a "sell" rating and lowered their target price for the stock from $5.00 to $2.50 in a report on Thursday, April 10th. Finally, TD Cowen upgraded 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 stock. According to data from MarketBeat, QuantumScape presently has an average rating of "Hold" and a consensus price target of $5.90.

QuantumScape Price Performance

The company has a current ratio of 16.40, a quick ratio of 16.40 and a debt-to-equity ratio of 0.03. The stock has a market capitalization of $4.87 billion, a price-to-earnings ratio of -10.06 and a beta of 4.43. The stock has a 50-day moving average price of $7.27 and a 200 day moving average price of $5.41.

QuantumScape (NYSE:QS - Get Free Report) last posted its earnings results on Wednesday, July 23rd. The company reported ($0.20) EPS for the quarter, meeting analysts' consensus estimates of ($0.20). The business had revenue of $36.67 million for the quarter. During the same quarter in the previous year, the business earned ($0.25) EPS. As a group, equities research analysts expect that QuantumScape Corporation will post -0.82 earnings per share for the current year.

Insider Transactions at QuantumScape

In other news, Director Fritz Prinz sold 70,187 shares of the business's stock in a transaction that occurred on Friday, July 25th. The stock was sold at an average price of $11.62, for a total transaction of $815,572.94. Following the transaction, the director directly owned 161,343 shares in the company, valued at $1,874,805.66. The trade was a 30.31% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Michael O. Mccarthy III sold 500,000 shares of the business's stock in a transaction that occurred 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 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. In the last quarter, insiders have sold 4,089,468 shares of company stock valued at $35,534,411. 12.03% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On QuantumScape

Several large investors have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its position in QuantumScape by 9.0% during the first 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 last quarter. Geode Capital Management LLC grew its holdings in QuantumScape by 0.5% during the 4th quarter. Geode Capital Management LLC now owns 5,882,031 shares of the company's stock worth $30,538,000 after acquiring an additional 28,073 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in QuantumScape by 55.2% during the 4th quarter. Dimensional Fund Advisors LP now owns 5,814,127 shares of the company's stock worth $30,183,000 after acquiring an additional 2,066,844 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of QuantumScape by 456.5% in 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 period. Finally, Norges Bank acquired a new position in shares of QuantumScape in the 4th quarter valued at about $17,762,000. 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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