QuantumScape (NYSE:QS) Trading 4.4% Higher - Should You Buy?

Key Points

• QuantumScape's stock rose 4.4% recently, trading at $8.41 after a high of $8.56, although the trading volume fell significantly compared to its average.
• Analysts have mixed views on QuantumScape, with a consensus rating of "Reduce" and varying target prices ranging from $2.50 to $11.00.
• Significant insider selling occurred recently, with notable transactions by directors reducing their holdings by substantial percentages, raising concerns about future performance.

QuantumScape Corporation (NYSE:QS - Get Free Report)'s share price shot up 4.4% on Tuesday . The company traded as high as $8.56 and last traded at $8.41. 6,097,382 shares traded hands during trading, a decline of 75% from the average session volume of 24,130,146 shares. The stock had previously closed at $8.05.

Analysts Set New Price Targets

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

QuantumScape Stock Down 2.4%

The company's fifty day moving average price is $8.89 and its 200-day moving average price is $5.86. The stock has a market capitalization of $4.47 billion, a PE ratio of -9.19 and a beta of 4.43. The company has a quick ratio of 16.40, a current ratio of 16.40 and a debt-to-equity ratio of 0.03.

QuantumScape (NYSE:QS - Get Free Report) last released its earnings results on Wednesday, July 23rd. The company reported ($0.20) earnings per share (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 earned ($0.25) EPS. Analysts forecast that QuantumScape Corporation will post -0.82 earnings per share for the current year.

Insider Activity

In related news, Director Fritz Prinz sold 929,813 shares of the business's stock in a transaction that occurred on Friday, July 25th. The shares were sold at an average price of $11.62, for a total value of $10,804,427.06. Following the completion of the transaction, the director directly owned 161,343 shares in the company, valued at $1,874,805.66. The trade was a 85.21% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CTO Timothy Holme sold 358,330 shares of the business's stock in a transaction that occurred on Thursday, July 3rd. The stock was sold at an average price of $7.03, for a total transaction of $2,519,059.90. Following the completion of the transaction, the chief technology officer owned 1,705,428 shares of the company's stock, valued at approximately $11,989,158.84. The trade was a 17.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 3,956,517 shares of company stock valued at $34,977,013 in the last quarter. Insiders own 5.48% of the company's stock.

Institutional Investors Weigh In On QuantumScape

Large investors have recently added to or reduced their stakes in the stock. M&T Bank Corp grew its position in QuantumScape by 97.2% in the 1st quarter. M&T Bank Corp now owns 39,964 shares of the company's stock worth $166,000 after purchasing an additional 19,694 shares during the period. Cambridge Investment Research Advisors Inc. grew its position in QuantumScape by 362.7% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 379,018 shares of the company's stock worth $1,577,000 after purchasing an additional 297,097 shares during the period. Raymond James Financial Inc. bought a new stake in QuantumScape in the 4th quarter worth approximately $1,527,000. CacheTech Inc. bought a new stake in QuantumScape in the 1st quarter worth approximately $130,000. Finally, Private Advisory Group LLC grew its position in QuantumScape by 17.1% in the 1st quarter. Private Advisory Group LLC now owns 447,478 shares of the company's stock worth $1,862,000 after purchasing an additional 65,237 shares during the period. 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.