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

Key Points

• QuantumScape's share price gapped up from $12.38 to $13.00 before market opening, but last traded at $12.22 with notable trading volume of 17,933,949 shares.
• Analysts have mixed ratings on QuantumScape, with a general average rating of "Reduce" and a price target of $5.88, despite some recent upgrades to "hold" or "neutral."
• Insider trading activity revealed significant sales, with one insider selling 465,000 shares, resulting in a 22.07% decrease in their ownership position.

QuantumScape Corporation (NYSE:QS - Get Free Report)'s share price gapped up before the market opened on Tuesday . The stock had previously closed at $12.38, but opened at $13.00. QuantumScape shares last traded at $12.22, with a volume of 17,933,949 shares changing hands.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the company. TD Cowen raised QuantumScape to a "hold" rating in a research note on Monday, July 7th. Robert W. Baird increased their price objective on shares of QuantumScape from $6.00 to $11.00 and gave the company a "neutral" rating in a report on Thursday, July 24th. Six equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Reduce" and an average price target of $5.88.

QuantumScape Trading Down 1.6%

The company has a quick ratio of 16.40, a current ratio of 16.40 and a debt-to-equity ratio of 0.03. The business's 50-day simple moving average is $9.70 and its two-hundred day simple moving average is $6.70. The firm has a market capitalization of $6.90 billion, a price-to-earnings ratio of -14.17 and a beta of 4.42.

QuantumScape (NYSE:QS - Get Free Report) last released its earnings results on Wednesday, July 23rd. The company reported ($0.20) earnings per share for the quarter, meeting the consensus estimate of ($0.20). The firm had revenue of $36.67 million during the quarter. During the same period in the prior year, the company posted ($0.25) earnings per share. Equities analysts forecast that QuantumScape Corporation will post -0.82 earnings per share 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 stock was sold at an average price of $8.21, for a total transaction of $3,817,650.00. Following the completion of the transaction, 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 position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Jeffrey B. Straubel sold 157,180 shares of the business's stock in a transaction dated Friday, September 12th. The stock was sold at an average price of $9.20, for a total value of $1,446,056.00. Following the transaction, the director directly owned 348,146 shares of the company's stock, valued at approximately $3,202,943.20. This represents a 31.10% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 3,791,051 shares of company stock valued at $34,696,538. Corporate insiders own 5.48% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in QS. Signaturefd LLC grew its stake in shares of QuantumScape by 2,086.1% during the first 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. Russell Investments Group Ltd. boosted its position in shares of QuantumScape by 685.5% during the 2nd quarter. Russell Investments Group Ltd. now owns 3,794 shares of the company's stock worth $25,000 after acquiring an additional 3,311 shares in the last quarter. Federated Hermes Inc. boosted its position in shares of QuantumScape by 660.0% during the 1st quarter. Federated Hermes Inc. now owns 6,262 shares of the company's stock worth $26,000 after acquiring an additional 5,438 shares in the last quarter. Hollencrest Capital Management boosted its holdings in 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 purchasing an additional 5,000 shares in the last quarter. Finally, North Capital Inc. acquired a new position in QuantumScape in the second quarter valued at approximately $27,000. 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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