QuantumScape (NYSE:QS) Stock Price Down 6.8% After Insider Selling

Key Points

• QuantumScape's stock declined by 6.8% to $8.65 following insider trades where both the CEO and a director sold a combined total of approximately 1.5 million shares at prices around $11.60.
• Despite the recent sell-off, research analysts have varying ratings for QuantumScape, with some lowering their price targets significantly, while others maintain a "hold" rating, reflecting uncertainty in the stock's performance.
• Institutional investors currently own 29.87% of QuantumScape, with notable increases in holdings from several firms during the second quarter, indicating ongoing interest in the company.

QuantumScape Corporation (NYSE:QS - Get Free Report)'s stock price traded down 6.8% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $8.55 and last traded at $8.65. 28,794,714 shares changed hands during trading, an increase of 21% from the average session volume of 23,880,318 shares. The stock had previously closed at $9.28.

Specifically, insider Michael O. Mccarthy III sold 500,000 shares of the business's stock in a transaction dated 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 transaction, the insider directly owned 1,467,183 shares in the company, valued at $17,019,322.80. The trade was a 25.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 value of $10,804,427.06. Following the completion of the sale, the director owned 161,343 shares in the company, valued at $1,874,805.66. This represents a 85.21% decrease in their ownership of the stock. The disclosure for this sale can be found here. In related news, Director Fritz Prinz sold 70,187 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 value of $815,572.94. Following the sale, the director directly owned 161,343 shares in the company, valued at approximately $1,874,805.66. The trade was a 30.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

Analysts Set New Price Targets

QS has been the topic of a number of recent research reports. UBS Group downgraded QuantumScape from a "neutral" rating to a "sell" rating and decreased their price objective for the company from $5.00 to $2.50 in a research report on Thursday, April 10th. TD Cowen upgraded QuantumScape to a "hold" rating in a research report on Monday, July 7th. The Goldman Sachs Group decreased their price objective on QuantumScape from $3.00 to $2.50 and set a "sell" rating on the stock in a research report on Monday, April 28th. Finally, Robert W. Baird upped their price objective on QuantumScape from $6.00 to $11.00 and gave the company a "neutral" rating in a research report on Thursday, July 24th. Three analysts have rated the stock with a sell rating and seven have assigned a hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $5.90.

QuantumScape Stock Performance

The company has a debt-to-equity ratio of 0.03, a current ratio of 16.40 and a quick ratio of 16.66. The firm has a fifty day moving average price of $7.18 and a two-hundred day moving average price of $5.39. The stock has a market capitalization of $4.62 billion, a PE ratio of -9.60 and a beta of 4.43.

QuantumScape (NYSE:QS - Get Free Report) last issued its quarterly earnings results on Wednesday, July 23rd. The company reported ($0.20) earnings per share for the quarter, hitting the consensus estimate of ($0.20). The business had revenue of $36.67 million during the quarter. During the same quarter last year, the firm posted ($0.25) EPS. Research analysts expect that QuantumScape Corporation will post -0.82 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of QS. Signaturefd LLC increased its holdings in QuantumScape by 2,086.1% during the 1st quarter. Signaturefd LLC now owns 6,121 shares of the company's stock worth $25,000 after purchasing an additional 5,841 shares during the period. Heck Capital Advisors LLC purchased a new position in QuantumScape during the 4th quarter worth $26,000. Federated Hermes Inc. increased its holdings in QuantumScape by 660.0% during the 1st quarter. Federated Hermes Inc. now owns 6,262 shares of the company's stock worth $26,000 after purchasing an additional 5,438 shares during the period. Hollencrest Capital Management increased its holdings in QuantumScape by 333.3% during the 1st quarter. Hollencrest Capital Management now owns 6,500 shares of the company's stock worth $27,000 after purchasing an additional 5,000 shares during the period. Finally, Raiffeisen Bank International AG purchased a new position in QuantumScape during the 4th quarter worth $29,000. 29.87% of the stock is currently owned by hedge funds and other 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.