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

Shares of QuantumScape Co. (NYSE:QS) surged by 8.2% during mid-day trading on Friday, reaching a high of $5.15 before settling at $5.12. In total, 8,523,557 shares were traded, marking a 9% decrease from the average daily volume of 9,358,702 shares. The previous close was recorded at $4.73.

Analyst Ratings Overview

QuantumScape has been featured in various analyst reports lately. Truist Financial reiterated a "hold" rating for the stock, increasing the price target to $7.00 from $6.00 in a report dated October 25th. Deutsche Bank also maintained a "hold" rating, assigning a $6.00 target price in their report on September 10th. Conversely, Wolfe Research initiated coverage with an "underperform" rating on September 5th. On November 19th, HSBC Global Research upgraded QuantumScape's rating from "reduce" to "hold," setting a price objective of $5.30. Overall, one analyst has a sell rating, while six others have a hold rating. According to MarketBeat.com, the average consensus rating stands at "Hold," with an average price target of $6.26.

Market Insights

The firm's financial metrics include a quick ratio and current ratio of 14.07, and a low debt-to-equity ratio of 0.03. QuantumScape boasts a market capitalization of $2.65 billion, with a price-to-earnings ratio of -5.45 and a high beta of 4.50. The stock's 50-day moving average stands at $5.18, while the 200-day moving average is $5.65.

Recent Earnings Report

QuantumScape reported its latest earnings results on October 23rd. The company recorded earnings per share of ($0.23) for the quarter, which was below the consensus estimate of ($0.21) by $0.02. In the same quarter last year, they also posted earnings of ($0.23). Analysts project that QuantumScape will have earnings of -$0.99 per share for the current fiscal year.

Insider Activity

Recent insider transactions have been noteworthy. CFO Kevin Hettrich sold 55,647 shares on November 21st at an average price of $5.05, totaling around $281,017.35. This sale decreased his holdings to 1,022,743 shares, valued at approximately $5,164,852. Director Jagdeep Singh sold 308,097 shares on December 9th for an average price of $5.30, amounting to over $1.6 million. Following this transaction, Singh's remaining shares are valued at around $13.6 million. In the last 90 days, insiders have sold a total of 666,032 shares, indicating that 12.03% of the stock is owned by company insiders.

Institutional Investment Trends

Several major investors have been active in buying and selling QuantumScape shares. Nisa Investment Advisors LLC significantly increased its stake by 6,650.0% in Q3, now holding 135,000 shares valued at $776,000 after acquiring an additional 133,000 shares. Canada Pension Plan Investment Board established a new position valued at $1,950,000 in Q2. Other notable institutional investments include Weiss Asset Management LP and Sanctuary Advisors LLC acquiring stakes around $828,000 and $680,000 respectively. Currently, institutional investors and hedge funds possess 29.87% of the company's shares.

About QuantumScape

QuantumScape Corporation is a research and development organization that focuses on creating and commercializing solid-state lithium-metal batteries primarily for electric vehicles and various other applications. Founded in 2010, the company is based in San Jose, California.

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