QuantumScape Co. Receives Average Rating of 'Reduce' from Brokerages

Shares of QuantumScape Co. (NYSE:QS) have been evaluated by eight brokerages, and the average recommendation has been categorized as "Reduce", according to Marketbeat.com. Among the analysts, one has assigned a sell rating, while the remaining seven have suggested holding onto the stock. The average target price set by these brokerages for the next twelve months is $6.26.

Recent Analyst Comments

Various research analysts have weighed in on QuantumScape's stock. Wolfe Research began their coverage on September 5th, giving the company an "underperform" rating. Truist Financial confirmed a "hold" rating with an updated price target of $7.00, an increase from a previous target of $6.00, on October 25th. Deutsche Bank also reiterated a "hold" rating with a target price of $6.00 on September 10th. Furthermore, HSBC upgraded their rating from "reduce" to "hold" and set a price target of $5.30 for the stock on November 19th. The expertise of these institutions reflects a cautious yet stable outlook for QuantumScape.

Insider Transactions

In related news, there have been notable sales of QuantumScape shares by company insiders. Director Jagdeep Singh divested 308,097 shares on December 9th, with an average sale price of $5.30, totaling approximately $1.63 million. Following this sale, Singh retains ownership of about 2.56 million shares valued at $13.59 million, yet this transaction decreased his ownership by 10.73%. Additionally, CFO Kevin Hettrich sold 29,667 shares on December 5th at an average price of $5.10, amounting to $151,301.70. After this sale, Hettrich holds about 1.02 million shares valued at around $5.22 million, reflecting a 2.81% reduction in his stake. In total, insiders have sold over 1 million shares worth approximately $5.77 million in the past ninety days, indicating that 12.03% of the company’s stock is currently held by corporate insiders.

Investment Activities

Institutional investors and hedge funds have made recent adjustments to their holdings in QuantumScape. For instance, 180 Wealth Advisors LLC increased their stake by 2.7% in the second quarter, acquiring an additional 2,059 shares to reach a total of 79,741 shares valued at $392,000. Similarly, Signaturefd LLC boosted its stake by 79.9% in the third quarter, totaling 4,838 shares worth $28,000 after adding 2,148 shares recently. Other firms like CWM LLC and Farther Finance Advisors LLC also raised their stakes by 56.0% and 32.4%, respectively, indicating a varied interest from institutional investors. Currently, hedge funds and other institutions own about 29.87% of the stock.

Stock Performance Overview

The QS stock opened at $5.01 on Wednesday, with a market capitalization of $2.56 billion. It has a P/E ratio of -5.27 and a high beta of 4.50, indicating significant volatility. The company’s debt-to-equity ratio stands at 0.03, demonstrating stable financial health, with a current and quick ratio both at 14.07. Over the past year, QuantumScape’s shares have fluctuated, reaching a low of $4.65 and a high of $10.03. Current moving averages reflect a fifty-day average of $5.26 and a two-hundred-day average of $5.69.

Company Overview

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

QuantumScape, Stock, Analysts