QuantumScape (NYSE:QS) Stock Price Down 7.6% on Insider Selling

Key Points

• QuantumScape's stock price fell 7.6% on Friday, dropping to as low as $11.11 before closing at $11.68.
• Goldman Sachs updated their target price for QuantumScape from $3.00 to $2.50 and maintains a "sell" rating, while other analysts have varied opinions, with a consensus hold rating and a target price of $5.90.
• Insiders have sold a total of 2,589,468 shares worth over $18 million in the last 90 days, leading to concerns about insider confidence in the stock.
• QuantumScape's recent earnings report showed a loss of (0.20) earnings per share, but with revenue of $36.67 million, matching expectations.

QuantumScape Corporation (NYSE:QS - Get Free Report)'s stock price was down 7.6% during trading on Friday after an insider sold shares in the company. The company traded as low as $11.11 and last traded at $11.68. Approximately 31,393,664 shares traded hands during trading, an increase of 36% from the average daily volume of 23,053,070 shares. The stock had previously closed at $12.63.

Specifically, Director Fritz Prinz sold 929,813 shares of the company's stock in a transaction 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 sale, the director directly 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Fritz Prinz sold 70,187 shares of the company'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 $815,572.94. Following the sale, the director owned 161,343 shares of the company's stock, valued at $1,874,805.66. The trade was a 30.31% decrease in their ownership of the stock. The disclosure for this sale can be found here.

Analyst Upgrades and Downgrades

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

QuantumScape Stock Down 8.3%

The company has a market capitalization of $6.14 billion, a P/E ratio of -12.77 and a beta of 4.42. The company has a current ratio of 16.66, a quick ratio of 16.66 and a debt-to-equity ratio of 0.03. The stock has a 50 day moving average price of $6.66 and a 200 day moving average price of $5.26.

QuantumScape (NYSE:QS - Get Free Report) last announced its quarterly earnings results on Wednesday, July 23rd. The company reported ($0.20) EPS for the quarter, meeting analysts' consensus estimates of ($0.20). The firm had revenue of $36.67 million during the quarter. During the same period last year, the firm earned ($0.25) EPS. On average, research analysts anticipate that QuantumScape Corporation will post -0.82 earnings per share for the current fiscal year.

Institutional Trading of QuantumScape

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

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.