Traders Show Interest in Call Options for QuantumScape (NYSE:QS)

QuantumScape Co. (NYSE:QS) experienced notable activity in options trading on Monday, with investors buying a total of 104,382 call options. This figure marks a substantial increase of about 210% compared to the typical volume of 33,628 call options usually traded.

Details on Insider Transactions

In related news, insider Mohit Singh sold 97,305 shares of QuantumScape stock on December 27. The shares were sold at an average price of $6.24, leading to a total transaction value of $607,183.20. Following this sale, Singh retains ownership of 1,092,020 shares valued at approximately $6,814,204.80. This transaction reflects an 8.18% reduction in their stake in the company. The details of this transaction are available in a filing with the SEC.

Moreover, CFO Kevin Hettrich also made a notable transaction, selling 34,607 shares of the company on October 9 for an average price of $5.49, resulting in a total value of $189,992.43. After this sale, Hettrich owns 1,073,022 shares, worth about $5,890,890.78, representing a 3.12% decline in his position. In total, insiders have sold 571,067 shares of QuantumScape in the past 90 days, which amounted to $3,093,612. Company insiders currently hold about 12.03% of the company’s stock.

Institutional Investors Adjust Positions

Recent moves by institutional investors indicate changing positions in QuantumScape. For instance, the Bank of New York Mellon Corp increased its stake in the second quarter by 1.3%, acquiring 11,897 additional shares to hold a total of 930,614 shares worth $4,579,000. Similarly, Commonwealth Equity Services LLC raised its holdings by 2.6%, owning 367,887 shares after adding 9,290 shares during the last quarter.

Other significant changes include the Arizona State Retirement System, which grew its position by 4.6% in the second quarter, holding 98,800 shares valued at $486,000 after purchasing an additional 4,330 shares. Additionally, Ground Swell Capital LLC acquired a new stake in QuantumScape during this period, worth approximately $95,000. Overall, hedge funds and institutions own about 29.87% of the stock.

Recent Trading Performance

On Monday, QuantumScape's stock price rose by 11.8%, climbing $0.71 to reach $6.71. A total of 16,077,159 shares were traded, compared to an average volume of 18,948,365. The company boasts a market capitalization of $3.44 billion, with a price-to-earnings ratio of -7.06, and a beta of 4.50. Over the past year, its stock has fluctuated between a low of $4.65 and a high of $9.66. Current financial ratios indicate a debt-to-equity ratio of 0.03, and both the quick and current ratios stand at 14.07. The company’s 50-day simple moving average is $5.16, while the 200-day average is $5.66.

QuantumScape’s most recent quarterly earnings report was released on October 23, revealing an earnings per share of ($0.23), falling short of the analysts’ consensus estimate of ($0.21) by $0.02. This performance matches the earnings per share from the same period the previous year. Analysts project an EPS of -0.99 for the current year.

Analysts' Insights

Multiple analysts have provided insights on QuantumScape's stock. Truist Financial maintained a “hold” rating while raising the price target to $7.00 from $6.00 in a recent note. Deutsche Bank also reissued a “hold” rating, setting a price target of $6.00. HSBC Global Research upgraded QuantumScape to a “hold” rating and revised their view on the stock, also adjusting the target pricing. Currently, the consensus rating for QuantumScape is “Hold,” with an average target price of $6.26 according to MarketBeat.com.

About QuantumScape

QuantumScape Corporation is a company focused on research and development, particularly in the field of solid-state lithium-metal batteries designed for electric vehicles and other applications. Founded in 2010, it is based in San Jose, California.

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