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

Key Points

• QuantumScape's stock price gapped up from $13.58 to $14.41 before the market opened, with shares last trading at $14.76 and over 9 million shares exchanged.
• A consensus rating for QuantumScape is currently "Reduce," with a price target averaging at $6.47, as multiple brokerages have issued mixed ratings ranging from "hold" to "sell."
• Insider trading activity is notable, with key executives selling significant shares recently, contributing to a total of over 2 million shares sold worth approximately $26.8 million in the last three months.

QuantumScape Corporation (NYSE:QS - Get Free Report)'s stock price gapped up before the market opened on Thursday . The stock had previously closed at $13.58, but opened at $14.41. QuantumScape shares last traded at $14.76, with a volume of 9,349,722 shares traded.

Analysts Set New Price Targets

A number of brokerages recently weighed in on QS. TD Cowen upgraded shares of QuantumScape to a "hold" rating in a research note on Monday, July 7th. Weiss Ratings restated a "sell (d-)" rating on shares of QuantumScape in a research note on Wednesday, October 8th. Deutsche Bank Aktiengesellschaft set a $10.00 target price on shares of QuantumScape and gave the stock a "hold" rating in a research note on Thursday. Finally, Robert W. Baird raised their target price on shares of QuantumScape from $6.00 to $11.00 and gave the stock a "neutral" rating in a research note on Thursday, July 24th. Seven investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and a consensus price target of $6.47.

QuantumScape Price Performance

The company has a market cap of $8.44 billion, a price-to-earnings ratio of -17.37 and a beta of 4.85. 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 company's 50 day moving average price is $11.55 and its 200 day moving average price is $7.95.

QuantumScape (NYSE:QS - Get Free Report) last announced its quarterly earnings data on Wednesday, October 22nd. The company reported ($0.18) EPS for the quarter, meeting the consensus estimate of ($0.18). During the same quarter last year, the firm posted ($0.23) earnings per share. Equities research analysts forecast that QuantumScape Corporation will post -0.82 earnings per share for the current year.

Insider Activity at QuantumScape

In related news, CFO Kevin Hettrich sold 9,800 shares of the firm's stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $13.94, for a total value of $136,612.00. Following the completion of the sale, the chief financial officer owned 1,591,467 shares in the company, valued at $22,185,049.98. This trade represents a 0.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CTO Timothy Holme sold 166,442 shares of the firm's stock in a transaction dated Friday, October 3rd. The shares were sold at an average price of $15.52, for a total transaction of $2,583,179.84. Following the completion of the sale, the chief technology officer owned 1,364,273 shares of the company's stock, valued at $21,173,516.96. This trade represents a 10.87% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 2,327,870 shares of company stock worth $26,819,135 over the last three months. 5.48% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On QuantumScape

Several hedge funds have recently added to or reduced their stakes in the business. TriaGen Wealth Management LLC purchased a new position in QuantumScape during the 3rd quarter valued at about $177,000. Ascent Wealth Partners LLC increased its holdings in QuantumScape by 14.1% during the 3rd quarter. Ascent Wealth Partners LLC now owns 13,211 shares of the company's stock valued at $163,000 after acquiring an additional 1,633 shares in the last quarter. Global Retirement Partners LLC increased its holdings in QuantumScape by 538.7% during the 3rd quarter. Global Retirement Partners LLC now owns 2,312 shares of the company's stock valued at $28,000 after acquiring an additional 1,950 shares in the last quarter. SteelPeak Wealth LLC purchased a new position in QuantumScape during the 3rd quarter valued at about $158,000. Finally, Masso Torrence Wealth Management Inc. purchased a new position in QuantumScape during the 3rd quarter valued at about $190,000. 29.87% of the stock is currently owned by hedge funds and other institutional investors.

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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