Evercore ISI Lowers QuantumScape Stock Price Target

Equities research analysts at Evercore ISI recently updated their outlook for QuantumScape (NYSE:QS) by reducing the price target from $10.00 to $8.00. This decision was outlined in a report issued on Tuesday. Despite the lowered target, Evercore ISI maintained an 'outperform' rating for the company, indicating that they expect the stock could perform better than the market average. The new price target suggests that there may be a potential upside of approximately 44.85% based on QuantumScape's last closing price.

Other research firms have also weighed in on QuantumScape in recent days. For instance, HSBC upgraded its rating from 'reduce' to 'hold' and established a target price of $5.30. On the other hand, Truist Financial lowered its price target from $7.00 to $6.00 while also keeping a 'hold' rating on the stock. Currently, QuantumScape holds ratings from multiple analysts: one has a sell rating, five analysts have assigned it a hold rating, and one has given it a buy rating. According to MarketBeat.com, the average rating for the stock is 'Hold' with an average price target set at $6.06.

Recent Trading Activity

On the day of the report, QuantumScape shares saw a modest increase, trading up 5.6% and reaching a price of $5.52. The trading volume on that day was 6,696,440 shares, significantly less than its average volume of 15,603,842 shares. QuantumScape's stock has seen fluctuations over the past year, having a low of $4.65 and a high of $9.52. The company currently boasts a market cap of $2.83 billion, a price-to-earnings ratio of -5.78, and a beta of 4.45, indicating high volatility. In addition, the firm's quick and current ratios are both 14.07, with a debt-to-equity ratio of just 0.03. Notably, the fifty-day moving average for the stock is $5.27, while the two-hundred-day moving average stands at $5.42.

Quarterly Earnings Performance

In its last quarterly earnings report, released on February 12th, QuantumScape reported an earnings per share of ($0.22), which fell short of the analysts' consensus prediction of ($0.21) by $0.01. Analysts project that the company will report an average earnings per share of -0.99 for the current fiscal year.

Insider Transactions

In related news, Director Jagdeep Singh sold a substantial number of shares, totaling 308,097, at an average price of $5.30, bringing in over $1.6 million. Following this transaction, Singh retains ownership of 2,563,767 shares valued at approximately $13.6 million. This sale indicated a 10.73% decrease in Singh's stake in the company. Similarly, Director Fritz Prinz sold 12,908 shares at an average price of $5.04. After this sale, he holds around 241,195 shares valued at about $1.2 million, which is a 5.08% reduction in his ownership. Over the past quarter, insiders have divested a total of 567,878 shares valued at $3.06 million. Currently, corporate insiders own about 12.03% of QuantumScape's stock.

Institutional Investment Trends

Recent activities indicate a varying interest from hedge funds in QuantumScape. Heck Capital Advisors acquired a new stake worth about $26,000 in the fourth quarter. Signaturefd LLC reported a notable increase in its holdings by 79.9% during the third quarter, now owning 4,838 shares valued at approximately $28,000. Meanwhile, International Assets Investment Management LLC saw its stake surge by 475.1% in the same timeframe. Other hedge funds like Raiffeisen Bank International AG and Blue Trust Inc. have also increased their investments. Collectively, institutional investors own about 29.87% of QuantumScape's shares.

Company Overview

Founded in 2010 and headquartered in San Jose, California, QuantumScape is a research and development stage company focusing primarily on the creation and commercialization of solid-state lithium-metal batteries aimed at electric vehicles and other applications. The company's innovative approach may play a significant role in the evolving energy landscape, particularly within the electric vehicle sector.

QuantumScape, Stocks, Earnings