QuantumScape (NYSE:QS) Trading Down 6.9% - Should You Sell?

Key Points

• QuantumScape's shares fell by 6.9%, trading as low as $8.17, which is a significant drop from its previous close of $8.80.
• Analysts have mixed opinions, with Robert W. Baird raising their target price to $11.00 while Goldman Sachs lowered theirs to $2.50, indicating a consensus rating of "Reduce" with an average price target of $5.90.
• Insiders have sold a considerable amount of shares, totaling over 4 million shares in the last 90 days, which may indicate a lack of confidence in the stock's future performance.

Shares of QuantumScape Corporation (NYSE:QS - Get Free Report) dropped 6.9% during mid-day trading on Tuesday . The company traded as low as $8.17 and last traded at $8.20. Approximately 8,760,788 shares traded hands during mid-day trading, a decline of 64% from the average daily volume of 24,411,986 shares. The stock had previously closed at $8.80.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Robert W. Baird upped their target price on shares of QuantumScape from $6.00 to $11.00 and gave the stock a "neutral" rating in a research note on Thursday, July 24th. The Goldman Sachs Group dropped their target price 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, TD Cowen upgraded shares of QuantumScape to a "hold" rating in a research report on Monday, July 7th. Seven equities research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $5.90.

QuantumScape Stock Performance

The stock has a market capitalization of $4.54 billion, a PE ratio of -9.32 and a beta of 4.43. The firm's fifty day moving average price is $8.24 and its two-hundred day moving average price is $5.68. 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 issued 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 business had revenue of $36.67 million for the quarter. During the same quarter in the previous year, the company earned ($0.25) earnings per share. As a group, equities research analysts forecast that QuantumScape Corporation will post -0.82 EPS for the current year.

Insider Transactions at QuantumScape

In other news, insider Michael O. Mccarthy III sold 500,000 shares of the firm'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 transaction, the insider directly owned 1,467,183 shares in the company, valued at approximately $17,019,322.80. This trade represents a 25.42% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Fritz Prinz sold 929,813 shares of QuantumScape stock in a transaction that occurred on 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 completion of the transaction, the director directly owned 161,343 shares in the company, valued at approximately $1,874,805.66. This trade represents a 85.21% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 4,018,040 shares of company stock worth $35,219,414 over the last 90 days. Company insiders own 5.48% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of QS. Vanguard Group Inc. boosted its stake in shares of QuantumScape by 9.0% during the first 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 in the last quarter. Geode Capital Management LLC boosted its holdings in 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 acquiring an additional 768,070 shares during the period. 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 worth $30,183,000 after buying an additional 2,066,844 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings 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 worth $19,799,000 after purchasing an additional 3,904,168 shares in the last quarter. Finally, Bank of America Corp DE grew its holdings in shares of QuantumScape by 148.0% in the second quarter. Bank of America Corp DE now owns 2,803,989 shares of the company's stock worth $18,843,000 after acquiring an additional 1,673,472 shares during the period. 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.

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