QuantumScape (NYSE:QS) Stock Price Down 12.8% - Should You Sell?

Key Points

• QuantumScape's stock fell by 12.8%, trading as low as $13.09, significantly increasing trading volume to 55 million shares during the day.
• Wall Street analysts have varying opinions, with Robert W. Baird raising the price target to $11 while Weiss Ratings maintains a sell rating, indicating mixed sentiment among experts.
• Insiders have sold a substantial amount of shares recently, with over 2.3 million shares valued at approximately $26.8 million sold in the last quarter, highlighting potential concerns about company performance.

Shares of QuantumScape Corporation (NYSE:QS - Get Free Report) dropped 12.8% during trading on Wednesday . The stock traded as low as $13.09 and last traded at $13.54. Approximately 55,006,634 shares changed hands during mid-day trading, an increase of 94% from the average daily volume of 28,425,123 shares. The stock had previously closed at $15.52.

Wall Street Analysts Forecast Growth

QS has been the subject of several recent research reports. Robert W. Baird raised their price target on shares of QuantumScape from $6.00 to $11.00 and gave the company a "neutral" rating in a research report on Thursday, July 24th. TD Cowen upgraded shares of QuantumScape to a "hold" rating in a report on Monday, July 7th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of QuantumScape in a report on Wednesday, October 8th. Six investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average target price of $5.88.

QuantumScape Price Performance

The company's 50 day moving average is $11.47 and its 200 day moving average is $7.92. 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 stock has a market capitalization of $7.66 billion, a price-to-earnings ratio of -15.74 and a beta of 4.85.

QuantumScape (NYSE:QS - Get Free Report) last announced its quarterly earnings results on Wednesday, October 22nd. The company reported ($0.18) EPS for the quarter, hitting the consensus estimate of ($0.18). Research analysts anticipate that QuantumScape Corporation will post -0.82 EPS for the current fiscal year.

Insider Activity at QuantumScape

In related news, insider Michael O. Mccarthy III sold 38,035 shares of QuantumScape stock in a transaction on Friday, September 12th. The shares were sold at an average price of $9.13, for a total transaction of $347,259.55. Following the sale, the insider directly owned 1,397,382 shares in the company, valued at $12,758,097.66. This trade represents a 2.65% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jeffrey B. Straubel sold 157,171 shares of QuantumScape stock in a transaction on Wednesday, October 1st. The stock was sold at an average price of $13.94, for a total transaction of $2,190,963.74. Following the sale, the director owned 321,040 shares in the company, valued at $4,475,297.60. This represents a 32.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 2,327,870 shares of company stock valued at $26,819,135 over the last quarter. 5.48% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Vontobel Holding Ltd. increased its stake in QuantumScape by 0.7% in the third quarter. Vontobel Holding Ltd. now owns 120,753 shares of the company's stock valued at $1,488,000 after purchasing an additional 810 shares during the period. Wedmont Private Capital increased its stake in QuantumScape by 5.7% in the third quarter. Wedmont Private Capital now owns 15,115 shares of the company's stock valued at $186,000 after purchasing an additional 815 shares during the period. CWM LLC increased its stake in QuantumScape by 69.1% in the third quarter. CWM LLC now owns 2,625 shares of the company's stock valued at $32,000 after purchasing an additional 1,073 shares during the period. Baird Financial Group Inc. increased its stake in QuantumScape by 8.5% in the second quarter. Baird Financial Group Inc. now owns 18,575 shares of the company's stock valued at $125,000 after purchasing an additional 1,450 shares during the period. Finally, Ascent Wealth Partners LLC increased its stake in QuantumScape by 14.1% in the third quarter. Ascent Wealth Partners LLC now owns 13,211 shares of the company's stock valued at $163,000 after purchasing an additional 1,633 shares during the period. 29.87% of the stock is currently owned by institutional investors and hedge funds.

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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