QuantumScape (NYSE:QS) Stock Price Down 3.7% - Should You Sell?

Key Points

• QuantumScape's stock fell 3.7% to a trading price of $8.29, with a significant decline in trading volume, reaching only 12.2 million shares compared to an average of 24.1 million.
• Analysts have given mixed ratings, with Goldman Sachs lowering its price target to $2.50 and setting a "sell" rating, while Robert W. Baird raised its target to $11.00 with a "neutral" rating.
• Insider selling has occurred, with significant transactions including a sale of 500,000 shares by insider Michael O. Mccarthy III at an average price of $11.60, indicating changes in ownership dynamics.

QuantumScape Corporation (NYSE:QS - Get Free Report)'s share price fell 3.7% during trading on Friday . The stock traded as low as $8.10 and last traded at $8.29. 12,169,048 shares traded hands during trading, a decline of 50% from the average session volume of 24,128,650 shares. The stock had previously closed at $8.60.

Analyst Ratings Changes

Several research firms have recently commented on QS. TD Cowen upgraded shares of QuantumScape to a "hold" rating in a research report on Monday, July 7th. UBS Group lowered shares of QuantumScape from a "neutral" rating to a "sell" rating and lowered their price target for the stock from $5.00 to $2.50 in a research report on Thursday, April 10th. The Goldman Sachs Group lowered their price target on shares of QuantumScape from $3.00 to $2.50 and set a "sell" rating for the company in a research 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 stock a "neutral" rating in a research report 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's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $5.90.

QuantumScape Stock Up 1.5%

The stock's 50-day moving average is $7.18 and its 200-day moving average is $5.39. The stock has a market cap of $4.74 billion, a P/E ratio of -9.73 and a beta of 4.43. The company has a current ratio of 16.40, a quick ratio of 16.40 and a debt-to-equity ratio of 0.03.

QuantumScape (NYSE:QS - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The company reported ($0.20) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.20). The company had revenue of $36.67 million during the quarter. During the same period in the previous year, the company earned ($0.25) EPS. As a group, research analysts anticipate that QuantumScape Corporation will post -0.82 earnings per share for the current fiscal year.

Insider Activity at QuantumScape

In other QuantumScape news, insider Michael O. Mccarthy III sold 500,000 shares of the company's stock in a transaction dated Friday, July 25th. The shares were sold at an average price of $11.60, for a total value of $5,800,000.00. Following the completion of the sale, the insider directly owned 1,467,183 shares of the company's stock, valued at approximately $17,019,322.80. This represents a 25.42% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Mohit Singh sold 465,000 shares of the company's stock in a transaction dated Tuesday, July 8th. The shares were sold at an average price of $8.21, for a total transaction of $3,817,650.00. Following the completion of the sale, the insider directly owned 1,641,711 shares of the company's stock, valued at $13,478,447.31. The trade was a 22.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 4,089,468 shares of company stock worth $35,534,411. 12.03% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On QuantumScape

A number of institutional investors and hedge funds have recently bought and sold shares of QS. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in QuantumScape by 456.5% in 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 valued at $19,799,000 after acquiring an additional 3,904,168 shares during the last quarter. Norges Bank acquired a new stake in QuantumScape in the 4th quarter valued at about $17,762,000. Vanguard Group Inc. lifted its holdings in QuantumScape by 9.0% in the 1st 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 last quarter. Dimensional Fund Advisors LP lifted its holdings in QuantumScape by 55.2% in the 4th 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 last quarter. Finally, Nuveen LLC acquired a new stake in QuantumScape in the 1st quarter valued at about $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.