QuantumScape (NYSE:QS) Shares Up 8.2% - Here's Why

Shares of QuantumScape Corporation (NYSE:QS) increased by 8.2% during mid-day trading on a recent Friday. The stock reached a high of $5.15 before closing at $5.12. A total of 8,523,557 shares were traded, marking a 9% decline compared to the average trading volume of 9,358,702 shares. The previous closing price was $4.73.

Analyst Ratings and Insights

QuantumScape has been the focus of multiple analyst reviews recently. Truist Financial maintained a "hold" rating and raised its price target from $6.00 to $7.00 in a report released on October 25. Deutsche Bank also reiterated its "hold" rating, with a price objective of $6.00 following a research report on September 10. Wolfe Research initiated coverage on the company with an "underperform" rating on September 5. Additionally, HSBC Global Research upgraded QuantumScape to a "hold" rating on November 19, setting a price target of $5.30. Currently, one research analyst has issued a sell rating, while six have assigned a hold rating. According to MarketBeat.com, the consensus rating for QuantumScape is "Hold," with an average price target of $6.26.

QuantumScape's Financial Metrics

The company boasts a quick ratio of 14.07 and a current ratio of 14.07, indicating strong liquidity. Its debt-to-equity ratio stands at 0.03. As of now, QuantumScape has a market capitalization of $2.65 billion, a price-to-earnings ratio of -5.45, and a beta of 4.50. The 50-day moving average for its stock price is $5.18, with a 200-day moving average at $5.65.

On October 23, QuantumScape released its latest earnings report, revealing earnings per share (EPS) at ($0.23), which was below the consensus estimate of ($0.21) by $0.02. This matched the EPS reported for the same quarter the previous year. Analysts predict QuantumScape will post an EPS of -0.99 for the current fiscal year.

Insider Trading Activity

In recent insider trading news, CFO Kevin Hettrich sold 55,647 shares on November 21 at an average price of $5.05, totaling approximately $281,017.35. Post-sale, he owns 1,022,743 shares worth nearly $5.16 million. This move represents a 5.16% decrease in his overall position. Furthermore, Director Jagdeep Singh sold 308,097 shares on December 9 at an average price of $5.30, amounting to about $1.63 million. Following this transaction, he holds 2,563,767 shares valued at roughly $13.59 million, reflecting a 10.73% reduction in his ownership. Over the past 90 days, insiders have sold 666,032 shares worth nearly $3.55 million, with company insiders owning 12.03% of the stock.

Institutional Investors' Actions

Institutional interest in QuantumScape is notable, as multiple large investors have recently adjusted their positions. Nisa Investment Advisors LLC increased its stake by an impressive 6,650.0% in the third quarter, acquiring 135,000 shares valued at $776,000 after buying 133,000 shares. The Canada Pension Plan Investment Board established a new stake valued at $1.95 million in the second quarter. Weiss Asset Management LP also entered the fray with a new investment worth about $828,000 in the third quarter. Sanctuary Advisors LLC and Susquehanna Fundamental Investments LLC both acquired new positions worth approximately $680,000 and $644,000 in the second quarter, respectively. In total, institutional investors and hedge funds control 29.87% of QuantumScape’s outstanding shares.

About QuantumScape

QuantumScape Corporation is primarily focused on the research and development of solid-state lithium-metal batteries for electric vehicles and other applications. Founded in 2010, the company is headquartered in San Jose, California.

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