Traders Purchase High Volume of Call Options on QuantumScape (NYSE:QS)

Key Points

• QuantumScape observed unusual trading activity with investors purchasing 130,680 call options, representing a 48% increase from the typical daily volume.
• Recent research reports led to a target price increase by Robert W. Baird from $6.00 to $11.00, although the consensus rating remains a "Reduce" with a target of $5.90.
• Insider transactions revealed that executives sold a significant number of shares, with one insider selling 500,000 shares valued at $5.8 million, highlighting a potential lack of confidence among insiders.

QuantumScape Corporation (NYSE:QS - Get Free Report) saw some unusual options trading on Monday. Investors bought 130,680 call options on the stock. Thisrepresentsanincreaseofapproximately48% compared to the typical daily volume of 88,131 call options.

Analyst Upgrades and Downgrades

QS has been the subject of a number of recent research reports. Robert W. Baird raised their target price on QuantumScape from $6.00 to $11.00 and gave the stock a "neutral" rating in a research report on Thursday, July 24th. TD Cowen raised shares of QuantumScape to a "hold" rating in a report on Monday, July 7th. Seven equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus target price of $5.90.

Insiders Place Their Bets

In related news, insider Michael O. Mccarthy III sold 500,000 shares of the 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 transaction, the insider directly owned 1,467,183 shares in the company, valued at $17,019,322.80. This trade represents a 25.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CTO Timothy Holme sold 11,906 shares of QuantumScape stock in a transaction dated Monday, July 7th. The shares were sold at an average price of $7.02, for a total value of $83,580.12. Following the transaction, the chief technology officer owned 1,661,928 shares of the company's stock, valued at $11,666,734.56. This trade represents a 0.71% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 3,956,517 shares of company stock worth $34,977,013 in the last quarter. 5.48% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of QS. Russell Investments Group Ltd. boosted its stake in shares of QuantumScape by 685.5% during the second quarter. Russell Investments Group Ltd. now owns 3,794 shares of the company's stock valued at $25,000 after purchasing an additional 3,311 shares during the period. North Capital Inc. bought a new stake in QuantumScape during the 2nd quarter valued at $27,000. Heck Capital Advisors LLC purchased a new stake in QuantumScape during the 4th quarter valued at $26,000. PNC Financial Services Group Inc. grew its holdings in QuantumScape by 54.5% in the 2nd quarter. PNC Financial Services Group Inc. now owns 5,565 shares of the company's stock worth $37,000 after acquiring an additional 1,963 shares during the last quarter. Finally, Raiffeisen Bank International AG purchased a new position in shares of QuantumScape in the fourth quarter valued at about $29,000. 29.87% of the stock is currently owned by institutional investors.

QuantumScape Price Performance

Shares of QS traded up $1.69 during trading hours on Monday, reaching $9.53. 101,798,905 shares of the company's stock traded hands, compared to its average volume of 24,120,309. QuantumScape has a 12 month low of $3.40 and a 12 month high of $15.03. The company has a current ratio of 16.40, a quick ratio of 16.40 and a debt-to-equity ratio of 0.03. The stock has a market cap of $5.39 billion, a PE ratio of -11.08 and a beta of 4.42. The firm's 50 day simple moving average is $9.10 and its 200-day simple moving average is $5.96.

QuantumScape (NYSE:QS - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The company reported ($0.20) earnings per share for the quarter, meeting analysts' consensus estimates 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) earnings per share. Equities analysts expect that QuantumScape will post -0.82 EPS for the current year.

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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