QuantumScape (NYSE:QS) Shares 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.

QuantumScape Corporation (NYSE:QS - Get Free Report) shares traded down 1.4% during mid-day trading on Friday . The stock traded as low as $8.97 and last traded at $9.11. 15,994,494 shares were traded 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 analysts recently issued reports on the stock. The Goldman Sachs Group reduced their price objective on shares of QuantumScape from $3.00 to $2.50 and set a "sell" rating on the stock in a report on Monday, April 28th. TD Cowen upgraded shares of QuantumScape to a "hold" rating in a research note on Monday, July 7th. Finally, Robert W. Baird boosted their price target 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. Three research analysts have rated the stock with a sell rating and seven have issued a hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $5.90.

QuantumScape Price Performance

The stock's 50 day moving average is $7.74 and its two-hundred day moving average is $5.54. 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 $5.14 billion, a PE ratio of -10.55 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, hitting analysts' consensus estimates of ($0.20). The firm had revenue of $36.67 million for the quarter. During the same quarter last year, the firm earned ($0.25) EPS. As a group, sell-side analysts forecast that QuantumScape Corporation will post -0.82 earnings per share for the current fiscal year.

Insider Activity

In related news, CTO Timothy Holme sold 11,906 shares of the company's stock in a transaction that occurred on Monday, July 7th. The stock was sold at an average price of $7.02, for a total value of $83,580.12. Following the completion of the transaction, the chief technology officer directly owned 1,661,928 shares of the company's stock, valued at $11,666,734.56. This represents a 0.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Mohit Singh sold 465,000 shares of the company'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 completion of the transaction, the insider directly 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 disclosure for this sale can be found here. Insiders have sold a total of 4,089,468 shares of company stock valued at $35,534,411 over the last three months. 5.48% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On QuantumScape

A number of institutional investors and hedge funds have recently added to or reduced their stakes in QS. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in QuantumScape by 456.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,759,334 shares of the company's stock valued at $19,799,000 after purchasing an additional 3,904,168 shares in the last quarter. Vanguard Group Inc. boosted its holdings in shares of QuantumScape by 9.0% in the first quarter. Vanguard Group Inc. now owns 35,351,974 shares of the company's stock valued at $147,064,000 after acquiring an additional 2,911,362 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of QuantumScape by 55.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 5,814,127 shares of the company's stock valued at $30,183,000 after acquiring an additional 2,066,844 shares during the period. Geode Capital Management LLC boosted its holdings in shares of QuantumScape by 12.5% in the second quarter. Geode Capital Management LLC now owns 6,914,680 shares of the company's stock valued at $46,475,000 after acquiring an additional 768,070 shares during the period. Finally, Nuveen LLC acquired a new stake in shares of QuantumScape in the first quarter valued at approximately $2,819,000. 29.87% of the stock is owned by institutional investors and hedge funds.

QuantumScape Company Profile

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.