QuantumScape (NYSE:QS) Shares Up 1.7% - Still a Buy?

Key Points

• QuantumScape's stock price increased by 1.7% on Thursday, closing at $8.18 after reaching a high of $8.20, but the trading volume was significantly lower at 2.66 million shares compared to the average of 23.99 million.
• The company's quarterly earnings resulted in an EPS of ($0.20), matching expectations, with revenue of $36.67 million, a slight improvement from the previous year.
• Insider selling has been notable, with director Fritz Prinz offloading 929,813 shares at a price averaging $11.62, representing a major reduction of 85.21% in his ownership of the stock.

QuantumScape Corporation (NYSE:QS - Get Free Report) shares shot up 1.7% on Thursday . The company traded as high as $8.20 and last traded at $8.18. 2,662,000 shares traded hands during trading, a decline of 89% from the average session volume of 23,987,746 shares. The stock had previously closed at $8.04.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on QS shares. Robert W. Baird boosted their target price 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 research report on Monday, July 7th. Seven analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $5.90.

QuantumScape Stock Performance

The business's 50-day simple moving average is $8.89 and its two-hundred day simple moving average is $5.87. The firm has a market cap of $4.47 billion, a price-to-earnings ratio of -9.19 and a beta of 4.42. The company has a quick ratio of 16.40, a current ratio of 16.40 and a debt-to-equity ratio of 0.03.

QuantumScape (NYSE:QS - Get Free Report) last issued its quarterly earnings data 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 during the quarter. During the same period in the prior year, the business posted ($0.25) EPS. As a group, sell-side analysts expect that QuantumScape Corporation will post -0.82 earnings per share for the current fiscal year.

Insider Activity

In other QuantumScape news, 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 value of $3,817,650.00. Following the completion of the transaction, the insider owned 1,641,711 shares in the company, valued at approximately $13,478,447.31. This represents a 22.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Fritz Prinz sold 929,813 shares of the business's stock in a transaction dated Friday, July 25th. The stock was sold at an average price of $11.62, for a total transaction of $10,804,427.06. Following the sale, the director directly owned 161,343 shares of the company's stock, valued at $1,874,805.66. This represents a 85.21% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 3,956,517 shares of company stock worth $34,977,013. 5.48% of the stock is currently owned by insiders.

Institutional Trading of QuantumScape

Institutional investors and hedge funds have recently modified their holdings of the stock. Signaturefd LLC increased its stake in shares of QuantumScape by 2,086.1% during the first quarter. Signaturefd LLC now owns 6,121 shares of the company's stock worth $25,000 after purchasing an additional 5,841 shares in the last quarter. Russell Investments Group Ltd. grew its stake in QuantumScape by 685.5% during the 2nd quarter. Russell Investments Group Ltd. now owns 3,794 shares of the company's stock valued at $25,000 after acquiring an additional 3,311 shares in the last quarter. Heck Capital Advisors LLC purchased a new stake in QuantumScape during the 4th quarter valued at about $26,000. Federated Hermes Inc. grew its stake in QuantumScape by 660.0% during the 1st quarter. Federated Hermes Inc. now owns 6,262 shares of the company's stock valued at $26,000 after acquiring an additional 5,438 shares in the last quarter. Finally, Hollencrest Capital Management grew its stake in QuantumScape by 333.3% during the 1st quarter. Hollencrest Capital Management now owns 6,500 shares of the company's stock valued at $27,000 after acquiring an additional 5,000 shares in the last quarter. Hedge funds and other institutional investors 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.