QuantumScape (NYSE:QS) Shares Up 9.9% - Here's Why

Key Points

• QuantumScape shares surged 9.9% to last trade at $9.18, following an analyst upgrade from Robert W. Baird, which raised its price target from $6.00 to $11.00.
• The company has a consensus rating of "Reduce", with a consensus price target of $5.88 according to MarketBeat data, despite some analysts issuing Hold ratings.
• Insiders have significantly reduced their holdings, selling over 4 million shares worth nearly $37 million in the last ninety days, indicating a potential lack of confidence in the stock’s near-term performance.

Shares of QuantumScape Corporation (NYSE:QS - Get Free Report) shot up 9.9% during trading on Thursday . The company traded as high as $9.13 and last traded at $9.18. 5,259,144 shares changed hands during mid-day trading, a decline of 78% from the average session volume of 24,164,738 shares. The stock had previously closed at $8.35.

Analyst Ratings Changes

A number of equities analysts have issued reports on QS shares. Robert W. Baird raised their price target 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 raised shares of QuantumScape to a "hold" rating in a research report on Monday, July 7th. Six investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Reduce" and a consensus price target of $5.88.

QuantumScape Price Performance

The firm has a market cap of $5.18 billion, a price-to-earnings ratio of -10.64 and a beta of 4.42. The company has a quick ratio of 16.40, a current ratio of 16.40 and a debt-to-equity ratio of 0.03. The company's 50-day moving average price is $9.23 and its 200-day moving average price is $6.02.

QuantumScape (NYSE:QS - Get Free Report) last issued its quarterly earnings results on Wednesday, July 23rd. The company reported ($0.20) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.20). The business had revenue of $36.67 million for the quarter. During the same quarter in the previous year, the company earned ($0.25) earnings per share. On average, equities research analysts forecast that QuantumScape Corporation will post -0.82 EPS for the current year.

Insider Activity

In related news, insider Mohit Singh sold 465,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 8th. The shares were sold at an average price of $8.21, for a total value of $3,817,650.00. Following the sale, the insider owned 1,641,711 shares of the company's stock, valued at $13,478,447.31. This trade represents a 22.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Fritz Prinz sold 929,813 shares of the firm's stock in a transaction that occurred on Friday, July 25th. The stock was sold at an average price of $11.62, for a total transaction of $10,804,427.06. Following the transaction, 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 ownership of the stock. The disclosure for this sale can be found here. Insiders sold 4,201,036 shares of company stock worth $36,884,712 in the last ninety days. 5.48% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in shares of QuantumScape by 9.0% during the 1st quarter. Vanguard Group Inc. now owns 35,351,974 shares of the company's stock worth $147,064,000 after buying an additional 2,911,362 shares during the last quarter. Geode Capital Management LLC increased its position in QuantumScape by 12.5% during the 2nd quarter. Geode Capital Management LLC now owns 6,914,680 shares of the company's stock worth $46,475,000 after purchasing an additional 768,070 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in QuantumScape by 456.5% during 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 purchasing an additional 3,904,168 shares in the last quarter. Bank of America Corp DE increased its position in QuantumScape by 148.0% during the 2nd quarter. Bank of America Corp DE now owns 2,803,989 shares of the company's stock worth $18,843,000 after purchasing an additional 1,673,472 shares in the last quarter. Finally, BNP Paribas Financial Markets grew its holdings in QuantumScape by 2,036.7% in the 2nd quarter. BNP Paribas Financial Markets now owns 2,452,835 shares of the company's stock valued at $16,483,000 after buying an additional 2,338,038 shares during the period. 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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