QuantumScape (NYSE:QS) Hits New 12-Month Low - What's Next?

Shares of QuantumScape Co. (NYSE:QS) reached a new 52-week low on Monday, dropping to a price of $4.03 during mid-day trading before closing slightly higher at $4.18. The trading volume for the day was 2,121,073 shares, significantly higher than its previous closing price of $4.33.

Analyst Ratings Changes

QuantumScape has been analyzed by various research firms recently. On February 25th, Evercore ISI reiterated a "hold" rating for the stock. Additionally, Truist Financial revised its target price for QuantumScape, lowering it from $7.00 to $6.00 while maintaining a "hold" rating in a report dated February 14th. Currently, the stock holds one sell rating and six hold ratings amongst analysts. According to MarketBeat.com, the average rating for the stock is "Hold" with an average target price of $6.06.

QuantumScape Stock Performance

The company has a market capitalization of $2.26 billion, with a price-to-earnings ratio of -4.40. Its beta stands at 4.45, indicating a high level of volatility. The stock's fifty-day simple moving average is at $4.81, and the 200-day simple moving average is $5.18. The company showcases strong liquidity with a current ratio of 14.07 and a quick ratio of 14.07, while maintaining a low debt-to-equity ratio of 0.03.

In its most recent quarterly earnings call on February 12th, QuantumScape reported an earnings per share (EPS) of -$0.22, falling short of analysts' expectations of -$0.21. Analysts project that the company will report an EPS of -0.82 for the current year.

Insider Activity at QuantumScape

Recent insider transactions have occurred as well, with insider Michael O. McCarthy III selling 76,315 shares of QuantumScape at an average price of $5.23 on February 21st, totaling approximately $399,127.45. Post-sale, he holds 1,010,523 shares valued around $5.28 million, marking a 7.02% reduction in his holdings. In another transaction on the same day, Director Fritz Prinz liquidated 12,908 shares at an average price of $5.22, which amounted to a total of about $67,379.76. Following this sale, Prinz retains 228,287 shares worth around $1.19 million, resulting in a 5.35% decline in his position. In total, insiders sold 180,147 shares valued at approximately $935,758 over the last quarter. Company insiders hold roughly 12.03% of the stock.

Hedge Funds Weigh In On QuantumScape

Institutional investors have shown varying levels of interest in QuantumScape. Ieq Capital LLC increased its holdings by 2.6% during the fourth quarter, now owning 87,370 shares valued at around $453,000 after acquiring an additional 2,200 shares. Similarly, Handelsbanken Fonder AB raised its stake by 2.0%, owning 114,700 shares valued at approximately $595,000 after purchasing 2,300 shares. Xponance Inc. expanded its position by 17.8%, now holding 15,862 shares worth about $82,000. Arizona State Retirement System increased its ownership by 2.3%, now controlling 111,364 shares valued at $578,000, adding 2,483 shares in this period. Birchcreek Wealth Management LLC also grew its holdings by 13.6%, now totaling 22,583 shares worth $117,000. Overall, institutional and hedge fund investors collectively own 29.87% of QuantumScape's stock.

QuantumScape Company Profile

Founded in 2010 and based in San Jose, California, QuantumScape Corporation focuses on developing and commercializing solid-state lithium-metal batteries aimed at electric vehicles and other applications.

Should You Invest $1,000 in QuantumScape Right Now?

Before deciding to invest in QuantumScape, it’s prudent to consider other potential options. Current analyst ratings suggest a "Reduce" on the stock, while top analysts have highlighted five other stocks that may be stronger buys in the current market environment.

QuantumScape, Stocks, Low