QuantumScape (NYSE:QS) Stock Price Down 1.4% - Should You Sell?

Key Points

• QuantumScape's stock price decreased by 1.4% to close at $9.11, with trading volume dropping by 35% from its average.
• Goldman Sachs and UBS have both issued sell ratings for QuantumScape, lowering their price targets to $2.50, while Robert W. Baird maintains a neutral rating with a target of $11.00.
• Insiders at QuantumScape have sold over 4 million shares in the past 90 days, which represents a significant decrease in their ownership stake.

Shares of QuantumScape Corporation (NYSE:QS - Get Free Report) fell 1.4% during trading on Friday . The stock traded as low as $8.97 and last traded at $9.11. 15,994,494 shares changed hands during mid-day trading, a decline of 35% from the average session volume of 24,516,195 shares. The stock had previously closed at $9.24.

Wall Street Analyst Weigh In

Several brokerages recently commented on QS. The Goldman Sachs Group cut 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. UBS Group downgraded shares of QuantumScape from a "neutral" rating to a "sell" rating and decreased their price target for the stock from $5.00 to $2.50 in a research note on Thursday, April 10th. Robert W. Baird raised their target price on shares of QuantumScape from $6.00 to $11.00 and gave the stock a "neutral" rating in a research note on Thursday, July 24th. Finally, TD Cowen upgraded QuantumScape to a "hold" rating in a report on Monday, July 7th. Three analysts have rated the stock with a sell rating and seven have assigned a hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $5.90.

QuantumScape Price Performance

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 has a market capitalization of $5.03 billion, a PE ratio of -10.32 and a beta of 4.43. The company has a 50-day moving average of $7.54 and a two-hundred day moving average of $5.48.

QuantumScape (NYSE:QS - Get Free Report) last announced its quarterly earnings data on Wednesday, July 23rd. The company reported ($0.20) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.20). The company had revenue of $36.67 million for the quarter. During the same period in the previous year, the company earned ($0.25) earnings per share. Sell-side analysts predict that QuantumScape Corporation will post -0.82 EPS for the current fiscal year.

Insider Activity at QuantumScape

In other news, insider Michael O. Mccarthy III sold 500,000 shares of the firm's stock in a transaction on 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 trade represents a 25.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Fritz Prinz sold 929,813 shares of the stock in a transaction 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 owned 161,343 shares of the company's stock, valued at $1,874,805.66. This trade represents a 85.21% decrease in their position. The disclosure for this sale can be found here. Insiders sold 4,089,468 shares of company stock valued at $35,534,411 in the last 90 days. 12.03% of the stock is currently owned by insiders.

Institutional Trading of QuantumScape

Several hedge funds and other institutional investors have recently modified their holdings of the company. Geode Capital Management LLC boosted its stake in QuantumScape by 0.5% during the fourth quarter. Geode Capital Management LLC now owns 5,882,031 shares of the company's stock worth $30,538,000 after buying an additional 28,073 shares in the last quarter. ExodusPoint Capital Management LP boosted its position in shares of QuantumScape by 64.2% during the fourth quarter. ExodusPoint Capital Management LP now owns 261,078 shares of the company's stock worth $1,355,000 after purchasing an additional 102,120 shares in the last quarter. Invesco Ltd. boosted its holdings in shares of QuantumScape by 8.3% in the fourth quarter. Invesco Ltd. now owns 1,550,012 shares of the company's stock valued at $8,045,000 after buying an additional 118,710 shares during the period. Legal & General Group Plc boosted its stake in shares of QuantumScape by 1.5% during the 4th quarter. Legal & General Group Plc now owns 405,363 shares of the company's stock worth $2,104,000 after buying an additional 5,838 shares during the last quarter. Finally, Raymond James Financial Inc. bought a new stake in shares of QuantumScape during the 4th quarter worth about $1,527,000. 29.87% of the stock is currently owned by hedge funds and other institutional investors.

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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