QuantumScape (NYSE:QS) Shares Up 4.4% - Still a 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) rose 4.4% on Tuesday . The stock traded as high as $8.56 and last traded at $8.41. Approximately 6,097,382 shares changed hands during trading, a decline of 75% from the average daily volume of 24,130,146 shares. The stock had previously closed at $8.05.

Wall Street Analysts Forecast Growth

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

QuantumScape Trading Up 3.7%

The company has a debt-to-equity ratio of 0.03, a current ratio of 16.40 and a quick ratio of 16.40. The stock's 50-day moving average is $8.59 and its two-hundred day moving average is $5.78. The stock has a market cap of $4.72 billion, a P/E ratio of -9.70 and a beta of 4.43.

QuantumScape (NYSE:QS - Get Free Report) last released 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 in the prior year, the business earned ($0.25) EPS. Equities research analysts anticipate that QuantumScape Corporation will post -0.82 EPS for the current year.

Insider Buying and Selling at QuantumScape

In other news, Director Fritz Prinz sold 929,813 shares of the firm's stock in a transaction dated 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 sale, the director owned 161,343 shares in the company, valued at approximately $1,874,805.66. This trade represents a 85.21% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Michael O. Mccarthy III sold 500,000 shares of QuantumScape stock in a transaction dated Friday, July 25th. The stock was sold at an average price of $11.60, for a total transaction of $5,800,000.00. Following the transaction, the insider directly owned 1,467,183 shares of the company's stock, valued at approximately $17,019,322.80. This represents a 25.42% 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 worth $34,977,013 over the last three months. 5.48% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of QuantumScape by 456.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,759,334 shares of the company's stock worth $19,799,000 after buying an additional 3,904,168 shares during the last quarter. Vanguard Group Inc. lifted its stake in shares of QuantumScape by 9.0% in the 1st quarter. Vanguard Group Inc. now owns 35,351,974 shares of the company's stock valued at $147,064,000 after purchasing an additional 2,911,362 shares during the period. BNP Paribas Financial Markets raised its position in QuantumScape by 2,036.7% during the second quarter. BNP Paribas Financial Markets now owns 2,452,835 shares of the company's stock worth $16,483,000 after acquiring an additional 2,338,038 shares during the period. Dimensional Fund Advisors LP raised its position in QuantumScape by 55.2% during the fourth quarter. Dimensional Fund Advisors LP now owns 5,814,127 shares of the company's stock worth $30,183,000 after acquiring an additional 2,066,844 shares during the period. Finally, JPMorgan Chase & Co. raised its position in shares of QuantumScape by 1,005.2% in the second quarter. JPMorgan Chase & Co. now owns 1,982,578 shares of the company's stock valued at $13,323,000 after buying an additional 1,803,196 shares during the last quarter. 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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