QuantumScape (NYSE:QS) Shares Down 2% - What's Next?

Shares of QuantumScape Co. (NYSE:QS) experienced a decline of 2% on Monday. The stock was noted to have dipped as low as $4.98 before last trading at $5.06. During this trading session, approximately 3,919,529 shares exchanged hands, representing a significant drop of 77% compared to the average daily trading volume of 17,209,998 shares. Prior to this, the stock had closed at $5.16.

Analyst Upgrades and Downgrades

Several analysts have taken a closer look at QuantumScape recently. On November 19th, Hsbc Global Research upgraded QuantumScape’s shares from a "reduce" rating to a "hold" rating, establishing a target price of $5.30 for the company. In addition, on October 25th, Truist Financial also reiterated a "hold" rating and adjusted its target price upward to $7.00 from the previous $6.00. To date, one research analyst has issued a sell rating while six have provided hold ratings for QuantumScape. As per the consensus data from MarketBeat, QuantumScape holds an average rating of "Hold" along with a price target of $6.26.

QuantumScape Stock Performance

The company holds a market capitalization of $2.61 billion and currently has a P/E ratio of -5.36. The stock exhibits a beta of 4.46, indicating high volatility. QuantumScape reported a current ratio and quick ratio both at 14.07, alongside a low debt-to-equity ratio of 0.03. Its fifty-day moving average stands at $5.29, while the 200-day moving average is slightly higher at $5.67.

Insider Activity

In notable insider activity, CFO Kevin Hettrich executed a sale of 55,647 shares in the company on November 21st, at an average price of $5.05, which amounted to a total of $281,017.35. Following this sale, Hettrich holds 1,022,743 shares valued at approximately $5,164,852.15, marking a 5.16% decrease in his ownership stake. Additionally, Director Jagdeep Singh sold 5,531 shares on November 14th for an average price of $5.01, totaling around $27,710.31. After this transaction, Singh's ownership consists of 2,590,583 shares, worth roughly $12,978,820.83, reflecting a minimal decrease of 0.21%. Reports indicate that over the last three months, insiders have offloaded 536,460 shares valued at roughly $2,903,619, while they maintain about 12.03% ownership of the company overall.

Hedge Funds and Institutional Investors

Recent changes in positions by institutional investors and hedge funds indicate growing interest in QuantumScape. For instance, Heck Capital Advisors LLC acquired a new stake valued at around $26,000 during the fourth quarter. Signaturefd LLC raised its holdings in QuantumScape by 79.9% during the third quarter, now owning 4,838 shares worth $28,000. On a larger scale, International Assets Investment Management LLC reported a remarkable increase of 475.1% in their holdings during the same period. They now own 5,118 shares valued at $29,000. Furthermore, Blue Trust Inc. enhanced its position by 208.8%, holding 6,738 shares valued at $39,000 after buying additional shares. In total, institutional investors control approximately 29.87% of QuantumScape’s stock.

About QuantumScape

QuantumScape Corporation is actively engaged in the research and development of solid-state lithium-metal batteries aimed particularly for electric vehicles and other applications. Established in 2010, the company operates out of San Jose, California, and has made it their mission to drive advancements in battery technology.

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