QuantumScape (NYSE:QS) Stock Price Down 4% - Here's What Happened

Key Points

• Shares down ~4%: QuantumScape dipped to about $12.45 mid-day (last trade $12.4460) with 23.64 million shares changing hands, roughly 20% below its average session volume.
• Negative analyst backdrop: The consensus rating is "Reduce" with an average price target of $8.31 (six Holds and four Sells), and recent analyst targets have ranged roughly from $5 to $16.
• Significant insider selling: Company insiders sold 3,021,740 shares (~$44.4 million) over the past three months; the R&D-stage firm has negative EPS, a $7.48 billion market cap and is focused on solid-state EV batteries.

QuantumScape Corporation (NYSE:QS - Get Free Report)'s share price fell 4% during mid-day trading on Wednesday . The company traded as low as $12.19 and last traded at $12.4460. 23,640,025 shares traded hands during trading, a decline of 20% from the average session volume of 29,396,059 shares. The stock had previously closed at $12.97.

Wall Street Analyst Weigh In

QS has been the subject of several analyst reports. Cowen reaffirmed a "hold" rating on shares of QuantumScape in a report on Thursday, October 30th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of QuantumScape in a research note on Wednesday, October 8th. 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 report on Thursday, July 24th. TD Cowen lifted their target price on shares of QuantumScape from $5.00 to $16.00 and gave the stock a "hold" rating in a research report on Thursday, October 30th. Finally, Deutsche Bank Aktiengesellschaft set a $10.00 price target on shares of QuantumScape and gave the company a "hold" rating in a research report on Thursday, October 23rd. Six research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Reduce" and a consensus target price of $8.31.

QuantumScape Trading Down 4.0%

The company has a market cap of $7.48 billion, a PE ratio of -15.37 and a beta of 4.83. The company has a debt-to-equity ratio of 0.02, a quick ratio of 21.14 and a current ratio of 21.14. The company has a 50 day simple moving average of $14.32 and a two-hundred day simple moving average of $9.60.

QuantumScape (NYSE:QS - Get Free Report) last announced its quarterly earnings data on Wednesday, October 22nd. The company reported ($0.18) EPS for the quarter, meeting analysts' consensus estimates of ($0.18). During the same quarter in the previous year, the company earned ($0.23) EPS. Sell-side analysts forecast that QuantumScape Corporation will post -0.82 EPS for the current year.

Insiders Place Their Bets

In related news, Director Jeffrey B. Straubel sold 157,180 shares of the stock in a transaction on Friday, September 12th. The stock was sold at an average price of $9.20, for a total transaction of $1,446,056.00. Following the completion of the sale, the director directly owned 348,146 shares in the company, valued at approximately $3,202,943.20. This trade represents a 31.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Fritz Prinz sold 980,878 shares of the business's stock in a transaction dated Friday, October 24th. The shares were sold at an average price of $15.49, for a total value of $15,193,800.22. The SEC filing for this sale provides additional information. Insiders sold a total of 3,021,740 shares of company stock valued at $44,388,241 in the last three months. Company insiders own 5.48% of the company's stock.

Hedge Funds Weigh In On QuantumScape

Hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in QuantumScape by 1.2% in the third quarter. Vanguard Group Inc. now owns 36,635,232 shares of the company's stock valued at $451,346,000 after acquiring an additional 422,378 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of QuantumScape by 12.5% during the 2nd quarter. Geode Capital Management LLC now owns 6,914,680 shares of the company's stock valued at $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 lifted its stake in shares of 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 purchasing an additional 3,904,168 shares during the last quarter. Two Sigma Investments LP boosted its holdings in QuantumScape by 150.1% in the third quarter. Two Sigma Investments LP now owns 3,630,275 shares of the company's stock worth $44,725,000 after purchasing an additional 2,178,918 shares in the last quarter. Finally, Man Group plc acquired a new position in QuantumScape during the third quarter worth $44,421,000. Institutional investors and hedge funds own 29.87% of the company's stock.

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.

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