QuantumScape (NYSE:QS) Shares Up 3.4% - Should You Buy?

Key Points

• QuantumScape's stock price rose by 3.4% to $8.14, although trading volume decreased significantly to 5.85 million shares, a 76% drop from its average.
• Analysts have mixed views on the stock, with Robert W. Baird raising the target price to $11.00, while Goldman Sachs lowered its target to $2.50 and issued a "sell" rating.
• Insider trading activity has been notable, with significant shares sold by directors, including a total of approximately $14 million in sales over the past ninety days.

QuantumScape Corporation (NYSE:QS - Get Free Report)'s stock price shot up 3.4% during trading on Friday . The stock traded as high as $8.19 and last traded at $8.14. 5,853,582 shares changed hands during mid-day trading, a decline of 76% from the average session volume of 24,258,799 shares. The stock had previously closed at $7.87.

Analyst Upgrades and Downgrades

Several research firms have recently commented on QS. 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 report on Thursday, July 24th. TD Cowen upgraded shares of QuantumScape to a "hold" rating in a research note on Monday, July 7th. Finally, The Goldman Sachs Group decreased their price target on shares of QuantumScape from $3.00 to $2.50 and set a "sell" rating for the company in a research note on Monday, April 28th. Seven equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, QuantumScape has a consensus rating of "Reduce" and an average target price of $5.90.

QuantumScape Stock Performance

The firm has a market capitalization of $4.62 billion, a P/E ratio of -9.48 and a beta of 4.43. 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 business's 50 day simple moving average is $8.44 and its two-hundred day simple moving average is $5.73.

QuantumScape (NYSE:QS - Get Free Report) last announced its quarterly earnings results on Wednesday, July 23rd. The company reported ($0.20) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.20). The company had revenue of $36.67 million for the quarter. During the same quarter in the previous year, the firm posted ($0.25) earnings per share. Sell-side analysts anticipate that QuantumScape Corporation will post -0.82 EPS for the current fiscal year.

Insider Activity at QuantumScape

In related news, Director Fritz Prinz sold 929,813 shares of QuantumScape stock in a transaction dated 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 directly owned 161,343 shares of the company's stock, valued at approximately $1,874,805.66. The trade was a 85.21% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Mohit Singh sold 465,000 shares of QuantumScape stock in a transaction dated 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 transaction, the insider directly owned 1,641,711 shares of the company's stock, valued at approximately $13,478,447.31. This represents a 22.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 3,956,517 shares of company stock valued at $34,977,013. Insiders own 5.48% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Signaturefd LLC increased its stake in shares of QuantumScape by 2,086.1% in the first quarter. Signaturefd LLC now owns 6,121 shares of the company's stock worth $25,000 after acquiring an additional 5,841 shares during the period. Russell Investments Group Ltd. grew its position in shares of QuantumScape by 685.5% in the second quarter. Russell Investments Group Ltd. now owns 3,794 shares of the company's stock valued at $25,000 after purchasing an additional 3,311 shares during the period. Heck Capital Advisors LLC purchased a new position in shares of QuantumScape in the fourth quarter worth about $26,000. Federated Hermes Inc. lifted its stake in shares of QuantumScape by 660.0% in the first quarter. Federated Hermes Inc. now owns 6,262 shares of the company's stock worth $26,000 after buying an additional 5,438 shares in the last quarter. Finally, Hollencrest Capital Management lifted its stake in shares of QuantumScape by 333.3% in the first quarter. Hollencrest Capital Management now owns 6,500 shares of the company's stock worth $27,000 after buying an additional 5,000 shares in the last quarter. 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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