QuantumScape (NYSE:QS) Stock Price Up 6.4% - Here's What Happened

Key Points

• QuantumScape's stock rose by 6.4%, trading at $8.81 after reaching a high of $9.01, though the trading volume declined significantly by 45% from its average.
• Analysts have mixed views on QuantumScape, with price targets ranging from $2.50 to $11.00, resulting in a consensus hold rating and target price of $5.90.
• Insider transactions revealed significant sell-offs, with insiders collectively selling over 4 million shares worth approximately $35.5 million in the last quarter, indicating a potential lack of confidence among insiders.

Shares of QuantumScape Corporation (NYSE:QS - Get Free Report) shot up 6.4% during mid-day trading on Thursday . The company traded as high as $9.01 and last traded at $8.81. 13,437,656 shares traded hands during trading, a decline of 45% from the average session volume of 24,403,775 shares. The stock had previously closed at $8.28.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on QS. TD Cowen upgraded shares of QuantumScape to a "hold" rating in a report on Monday, July 7th. 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 report on Monday, April 28th. Finally, Robert W. Baird upped their price target on shares of QuantumScape from $6.00 to $11.00 and gave the company a "neutral" rating in a report on Thursday, July 24th. Three analysts have rated the stock with a sell rating and seven have given a hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $5.90.

QuantumScape Trading Down 5.3%

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 company's 50 day moving average is $7.64 and its two-hundred day moving average is $5.51. The firm has a market cap of $4.95 billion, a P/E ratio of -10.17 and a beta of 4.43.

QuantumScape (NYSE:QS - Get Free Report) last released its earnings results on Wednesday, July 23rd. The company reported ($0.20) earnings per share for the quarter, meeting the consensus estimate of ($0.20). The company had revenue of $36.67 million during the quarter. During the same period in the previous year, the firm posted ($0.25) EPS. On average, sell-side analysts predict that QuantumScape Corporation will post -0.82 earnings per share for the current year.

Insider Activity at QuantumScape

In related news, CTO Timothy Holme sold 11,906 shares of the stock in a transaction dated Monday, July 7th. The shares were sold at an average price of $7.02, for a total value of $83,580.12. Following the completion of the sale, the chief technology officer owned 1,661,928 shares in the company, valued at approximately $11,666,734.56. This trade represents a 0.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Michael O. Mccarthy III sold 500,000 shares of the stock in a transaction dated Friday, July 25th. The shares were sold at an average price of $11.60, for a total transaction of $5,800,000.00. Following the completion of the sale, the insider owned 1,467,183 shares of the company's stock, valued at approximately $17,019,322.80. The trade was a 25.42% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 4,089,468 shares of company stock worth $35,534,411 in the last three months. Corporate insiders own 12.03% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in QS. Signaturefd LLC lifted its stake in QuantumScape by 2,086.1% during the first quarter. Signaturefd LLC now owns 6,121 shares of the company's stock worth $25,000 after purchasing an additional 5,841 shares during the period. Heck Capital Advisors LLC bought a new position in shares of QuantumScape in the fourth quarter valued at approximately $26,000. Federated Hermes Inc. raised 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 valued at $26,000 after acquiring an additional 5,438 shares during the last quarter. Hollencrest Capital Management raised 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 valued at $27,000 after acquiring an additional 5,000 shares during the last quarter. Finally, North Capital Inc. bought a new position in shares of QuantumScape in the second quarter valued at approximately $27,000. 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.