QuantumScape Sees Unusually High Options Volume (NYSE:QS)

Key Points

• QuantumScape saw unusually heavy options activity on Monday, with 80,729 call options traded — about 130% above the average volume.
• Analyst sentiment remains cautious: multiple firms recently cut price targets, and the stock’s overall consensus rating is Reduce with an average target price of $11.13.
• The company also saw insider selling, including recent stock sales by its CTO and another insider, while QuantumScape shares traded up to $8.29 in Monday’s session.

QuantumScape Corporation (NYSE:QS - Get Free Report) saw unusually large options trading on Monday. Investors bought 80,729 call options on the company. This is an increase of 130% compared to the average volume of 35,137 call options.

Analysts Set New Price Targets

QS has been the topic of a number of recent research reports. HSBC raised QuantumScape from a "reduce" rating to a "hold" rating and decreased their target price for the stock from $10.50 to $8.30 in a report on Wednesday, February 18th. TD Cowen reaffirmed a "hold" rating on shares of QuantumScape in a report on Wednesday, February 18th. Robert W. Baird set a $12.00 target price on QuantumScape in a report on Thursday, February 12th. Finally, Morgan Stanley decreased their target price on QuantumScape from $12.00 to $8.50 and set an "equal weight" rating on the stock in a report on Wednesday, February 18th. Six equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Reduce" and an average target price of $11.13.

Insider Buying and Selling

In related news, CTO Timothy Holme sold 127,077 shares of the firm's stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $7.10, for a total value of $902,246.70. Following the transaction, the chief technology officer directly owned 1,122,348 shares of the company's stock, valued at approximately $7,968,670.80. This trade represents a 10.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Michael O. Mccarthy III sold 45,000 shares of the firm's stock in a transaction on Friday, March 6th. The stock was sold at an average price of $6.73, for a total value of $302,850.00. Following the completion of the transaction, the insider directly owned 954,219 shares in the company, valued at approximately $6,421,893.87. This represents a 4.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 716,925 shares of company stock valued at $4,877,077. 5.48% of the stock is owned by company insiders.

Institutional Investors Weigh In On QuantumScape

Several large investors have recently made changes to their positions in QS. Connor Clark & Lunn Investment Management Ltd. purchased a new position in QuantumScape in the third quarter worth about $33,962,000. Vanguard Group Inc. boosted its position in shares of QuantumScape by 1.2% during the third quarter. Vanguard Group Inc. now owns 36,635,232 shares of the company's stock valued at $451,346,000 after buying an additional 422,378 shares during the period. Exchange Traded Concepts LLC purchased a new position in shares of QuantumScape during the fourth quarter valued at approximately $4,475,000. State of New Jersey Common Pension Fund D purchased a new position in shares of QuantumScape during the third quarter valued at approximately $3,330,000. Finally, Cookson Peirce & Co. Inc. purchased a new position in shares of QuantumScape during the third quarter valued at approximately $2,222,000. 29.87% of the stock is owned by institutional investors.

QuantumScape Price Performance

NYSE:QS traded up $0.75 on Monday, reaching $8.29. 16,915,287 shares of the company's stock traded hands, compared to its average volume of 15,877,646. The company has a quick ratio of 21.14, a current ratio of 21.14 and a debt-to-equity ratio of 0.02. The stock has a 50-day simple moving average of $6.82 and a 200-day simple moving average of $9.93. The firm has a market cap of $5.10 billion, a PE ratio of -10.23 and a beta of 2.57. QuantumScape has a 12 month low of $3.80 and a 12 month high of $19.07.

QuantumScape (NYSE:QS - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The company reported ($0.16) EPS for the quarter, beating analysts' consensus estimates of ($0.18) by $0.02. During the same period in the prior year, the firm earned ($0.21) EPS. Equities research analysts forecast that QuantumScape will post -0.82 earnings per share for the current year.

About QuantumScape

QuantumScape Corporation is a development-stage company specializing in the research and commercialization of next-generation solid-state lithium-metal batteries for electric vehicles. The company's core technology replaces the traditional liquid electrolyte with a solid ceramic separator, aiming to deliver higher energy density, faster charging times and enhanced safety compared to conventional lithium-ion cells. QuantumScape's product roadmap focuses on enabling electric vehicle manufacturers to extend driving range and reduce charging downtime, addressing key barriers to widespread EV adoption.

Founded in 2010 and headquartered in San Jose, California, QuantumScape has attracted significant strategic investment and formed partnerships with leading automotive OEMs.

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