QuantumScape (NYSE:QS) Shares Up 8.1% - Still a Buy?

Shares of QuantumScape Co. (NYSE:QS) rose by 8.1% on Thursday, reaching a high of $5.67 before closing at $5.61. During this trading day, the volume was 7,741,869 shares, which is a 20% decrease from the average daily trading volume of 9,691,576 shares. The previous close was at $5.19.

Analysts Set New Price Targets

• QuantumScape: High-Risk, High-Reward Solid-State Battery Play?

Several research firms have released reports regarding QuantumScape's stock. Truist Financial reiterated a "hold" rating and increased its target price to $7.00, up from the earlier $6.00, in a report dated October 25. Wolfe Research began coverage of QuantumScape on September 5, assigning it an "underperform" rating. HSBC Global Research upgraded its view on the company to "hold" from "reduce" on November 19, setting a target price of $5.30. Furthermore, Deutsche Bank maintained a "hold" rating with a target price of $6.00 as of September 10. Currently, one analyst has given a sell rating, while six analysts have recommended holding the stock, leading to a consensus rating of "Hold" and an average price target of $6.26 according to MarketBeat data.

Read Our Latest Report on QS

Recent Trading Activity

• 3 Stocks That Are Potential Takeover Targets in 2025

QuantumScape's financial metrics include a high current ratio of 14.07, a quick ratio of 14.07, and a low debt-to-equity ratio of 0.03. The stock's 50-day moving average stands at $5.18, while the 200-day moving average is at $5.64, and it has a market capitalization of $2.74 billion, with a negative P/E ratio of -5.62 and a beta of 4.50.

The most recent quarterly earnings report was posted on October 23, revealing a loss of ($0.23) earnings per share. This result was below the analysts' consensus estimate of ($0.21) by $0.02. The same quarter from the previous year also reported ($0.23) EPS. Analysts expect QuantumScape to finish the current year with a projected EPS of -0.99.

Insider Trading Activity

• Enovix Targets Silicon Anode Battery Launch As AI Drives Demand

In recent insider transactions, Mohit Singh sold 97,305 shares on December 27 at an average price of $6.24, totaling $607,183.20. This sale decreased his holdings by 8.18%, leaving him with 1,092,020 shares valued at approximately $6.81 million. Additionally, Director Jagdeep Singh sold 308,097 shares on December 9 at an average price of $5.30, bringing in about $1.63 million and reducing his ownership by 10.73%. In total, insiders sold 763,337 shares in the last quarter, with insiders currently holding 12.03% of the company’s stock.

Institutional Investors' Moves

Recently, institutional investors have made notable changes in their stakes in QuantumScape. The Canada Pension Plan Investment Board opened a new position valued at $1.95 million in the second quarter. American Century Companies increased its holdings by 880.6% during the same period, now holding 352,286 shares worth $1.73 million after gaining an additional 316,361 shares. Geode Capital Management raised its stakes by 3.9% in the third quarter, currently owning 5,853,958 shares worth $33.67 million. Weiss Asset Management also entered a new position valued at about $828,000 in the third quarter. Furthermore, Nisa Investment Advisors expanded its holdings by 6,650.0% to own 135,000 shares valued at $776,000. Overall, institutional investors now account for 29.87% of QuantumScape's shares.

About QuantumScape

QuantumScape Corporation is a research and development stage company focused on creating solid-state lithium-metal batteries, particularly for electric vehicles and other related applications. Founded in 2010 and headquartered in San Jose, California, the firm aims to innovate within the battery technology space.

Conclusions for Investors

Before making any investment decisions regarding QuantumScape, it is crucial to consider the current market conditions, analyst ratings, and insider trading activity. While some analysts express caution, others see potential upside, thus making it essential for investors to conduct thorough research.

QuantumScape, Stock, Analyst