QuantumScape (NYSE:QS) Trading Down 4.5% - Here's Why

Key Points

• QuantumScape's stock declined by 4.5% during mid-day trading, reaching a low of $9.47, with a significant drop in trading volume.
• Analysts have mixed views on QuantumScape, with a consensus rating of "Reduce" and a target price set at $5.88.
• Recent insider transactions show significant stock sales, with one director reducing their stake by 85.21%, while institutional investors have significantly increased their holdings in the company.

QuantumScape Corporation (NYSE:QS - Get Free Report) shares fell 4.5% during mid-day trading on Monday . The company traded as low as $9.47 and last traded at $9.50. 12,948,744 shares were traded during mid-day trading, a decline of 47% from the average session volume of 24,359,969 shares. The stock had previously closed at $9.95.

Analyst Ratings Changes

A number of brokerages have recently issued reports on QS. TD Cowen raised QuantumScape to a "hold" rating in a report on Monday, July 7th. Robert W. Baird raised their price target on QuantumScape from $6.00 to $11.00 and gave the company a "neutral" rating in a report on Thursday, July 24th. Six analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Reduce" and a consensus target price of $5.88.

QuantumScape Price Performance

The company has a 50 day moving average price of $9.33 and a 200 day moving average price of $6.10. The company has a market capitalization of $5.84 billion, a price-to-earnings ratio of -12.01 and a beta of 4.42. 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 posted its quarterly earnings results on Wednesday, July 23rd. The company reported ($0.20) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.20). The company had revenue of $36.67 million during the quarter. During the same quarter in the prior year, the company earned ($0.25) EPS. As a group, equities research analysts forecast that QuantumScape Corporation will post -0.82 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Fritz Prinz sold 929,813 shares of the firm's stock in a transaction on Friday, July 25th. The stock was sold at an average price of $11.62, for a total value of $10,804,427.06. Following the transaction, the director directly owned 161,343 shares in the company, valued at $1,874,805.66. This trade represents a 85.21% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, 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 value of $5,800,000.00. Following the completion of the transaction, the insider owned 1,467,183 shares in the company, valued at $17,019,322.80. This represents a 25.42% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 4,201,036 shares of company stock valued at $36,884,712 over the last 90 days. Company insiders own 5.48% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised 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 period. Vanguard Group Inc. raised its stake in shares of 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 purchasing an additional 2,911,362 shares during the period. BNP Paribas Financial Markets raised its stake in shares of QuantumScape by 2,036.7% in the 2nd quarter. BNP Paribas Financial Markets now owns 2,452,835 shares of the company's stock valued at $16,483,000 after purchasing an additional 2,338,038 shares during the period. JPMorgan Chase & Co. raised its stake in shares of QuantumScape by 1,005.2% in the 2nd quarter. JPMorgan Chase & Co. now owns 1,982,578 shares of the company's stock valued at $13,323,000 after purchasing an additional 1,803,196 shares during the period. Finally, Bank of America Corp DE raised its stake in shares of QuantumScape by 148.0% in the 2nd quarter. Bank of America Corp DE now owns 2,803,989 shares of the company's stock valued at $18,843,000 after purchasing an additional 1,673,472 shares during the period. 29.87% of the stock is currently owned by institutional investors.

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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