QuantumScape (NYSE:QS) Shares Gap Up - Still a Buy?

Key Points

• QuantumScape's stock price gapped up from $7.84 to $10.06 before settling at $9.64, with a substantial volume of approximately 51.99 million shares traded.
• Analyst ratings for QuantumScape are mixed, with a consensus rating of "Reduce" and a target price of $5.90, which indicates a potential decline from the current trading levels.
• Insider selling was significant, with key executives selling nearly 4 million shares in total, reflecting a 25% and 85% decrease in their respective holdings.

QuantumScape Corporation (NYSE:QS - Get Free Report)'s stock price gapped up prior to trading on Monday . The stock had previously closed at $7.84, but opened at $10.06. QuantumScape shares last traded at $9.64, with a volume of 51,993,785 shares changing hands.

Analyst Upgrades and Downgrades

A number of research firms recently commented on QS. TD Cowen upgraded QuantumScape to a "hold" rating in a report on Monday, July 7th. Robert W. Baird lifted their price target on shares of QuantumScape from $6.00 to $11.00 and gave the company a "neutral" rating in a research report on Thursday, July 24th. Seven analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus target price of $5.90.

QuantumScape Stock Performance

The company has a market cap of $5.28 billion, a PE ratio of -10.86 and a beta of 4.42. 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 firm's 50-day simple moving average is $9.10 and its two-hundred day simple moving average is $5.96.

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

Insider Buying and Selling at QuantumScape

In related news, insider Michael O. Mccarthy III sold 500,000 shares of the business's stock in a transaction on 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 completion of the transaction, the insider directly owned 1,467,183 shares in the company, valued at $17,019,322.80. The trade was a 25.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Fritz Prinz sold 929,813 shares of the business's stock in a transaction on Friday, July 25th. The shares were sold at an average price of $11.62, for a total transaction 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 represents a 85.21% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 3,956,517 shares of company stock valued at $34,977,013. 5.48% of the stock is currently owned by insiders.

Institutional Investors Weigh In On QuantumScape

Several institutional investors and hedge funds have recently added to or reduced their stakes in QS. Russell Investments Group Ltd. grew its holdings in shares of QuantumScape by 685.5% during the second quarter. Russell Investments Group Ltd. now owns 3,794 shares of the company's stock worth $25,000 after buying an additional 3,311 shares in the last quarter. North Capital Inc. acquired a new position in QuantumScape in the second quarter valued at about $27,000. Heck Capital Advisors LLC acquired a new position in QuantumScape in the fourth quarter valued at about $26,000. PNC Financial Services Group Inc. lifted its position in QuantumScape by 54.5% in the second quarter. PNC Financial Services Group Inc. now owns 5,565 shares of the company's stock valued at $37,000 after buying an additional 1,963 shares during the last quarter. Finally, Raiffeisen Bank International AG acquired a new stake in shares of QuantumScape during the fourth quarter worth about $29,000. Hedge funds and other institutional investors 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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