QuantumScape (NYSE:QS) Shares Gap Down – Time to Sell?

QuantumScape Corporation (NYSE:QS) shares gapped down prior to trading on Monday . The stock had previously closed at $14.64, but opened at $14.03. QuantumScape shares last traded at $12.12, with a volume of 41,902,114 shares changing hands.

Analyst Upgrades and Downgrades

QS has been the subject of several research analyst reports. UBS Group downgraded QuantumScape from a “neutral” rating to a “sell” rating and dropped their price objective for the company from $5.00 to $2.50 in a research note on Thursday, April 10th. The Goldman Sachs Group reduced their price objective on QuantumScape from $3.00 to $2.50 and set a “sell” rating on the stock in a research note on Monday, April 28th. TD Cowen raised QuantumScape to a “hold” rating in a report on Monday, July 7th. Finally, Robert W. Baird lowered their target price on QuantumScape from $8.00 to $6.00 and set a “neutral” rating for the company in a report on Thursday, April 24th. Three research analysts have rated the stock with a sell rating and seven have issued a hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $5.19.

QuantumScape Stock Performance

The company has a debt-to-equity ratio of 0.03, a current ratio of 16.66 and a quick ratio of 16.66. The company’s fifty day simple moving average is $5.82 and its two-hundred day simple moving average is $5.02. The stock has a market cap of $7.07 billion, a price-to-earnings ratio of -13.93 and a beta of 4.42.

QuantumScape (NYSE:QS) last announced its earnings results on Wednesday, April 23rd. The company reported ($0.21) EPS for the quarter, missing the consensus estimate of ($0.19) by ($0.02). During the same quarter in the prior year, the firm posted ($0.24) EPS. On average, analysts forecast that QuantumScape Corporation will post -0.82 earnings per share for the current year.

Insider Activity

In related news, insider Mohit Singh sold 465,000 shares of QuantumScape stock in a transaction on Tuesday, July 8th. The shares were sold at an average price of $8.21, for a total value of $3,817,650.00. Following the transaction, the insider directly owned 1,641,711 shares of the company’s stock, valued at $13,478,447.31. The trade was a 22.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CTO Timothy Holme sold 358,330 shares of the business’s stock in a transaction on Thursday, July 3rd. The shares were sold at an average price of $7.03, for a total transaction of $2,519,059.90. Following the transaction, the chief technology officer directly owned 1,705,428 shares in the company, valued at approximately $11,989,158.84. The trade was a 17.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 2,589,468 shares of company stock worth $18,114,411. 12.03% of the stock is owned by company insiders.

Institutional Trading of QuantumScape

Hedge funds and other institutional investors have recently modified their holdings of the business. Xponance Inc. boosted its holdings in shares of QuantumScape by 17.8% during the 4th quarter. Xponance Inc. now owns 15,862 shares of the company’s stock valued at $82,000 after acquiring an additional 2,400 shares during the last quarter. Birchcreek Wealth Management LLC boosted its holdings in shares of QuantumScape by 11.5% during the 1st quarter. Birchcreek Wealth Management LLC now owns 25,183 shares of the company’s stock valued at $105,000 after acquiring an additional 2,600 shares during the last quarter. HighTower Advisors LLC boosted its holdings in shares of QuantumScape by 13.7% during the 1st quarter. HighTower Advisors LLC now owns 23,611 shares of the company’s stock valued at $98,000 after acquiring an additional 2,838 shares during the last quarter. Mercer Global Advisors Inc. ADV boosted its holdings in shares of QuantumScape by 19.7% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 18,199 shares of the company’s stock valued at $94,000 after acquiring an additional 2,997 shares during the last quarter. Finally, Treasurer of the State of North Carolina boosted its holdings in shares of QuantumScape by 2.0% during the 4th quarter. Treasurer of the State of North Carolina now owns 158,579 shares of the company’s stock valued at $823,000 after acquiring an additional 3,180 shares during the last quarter. 29.87% of the stock is owned by hedge funds and other institutional investors.

About QuantumScape

QuantumScape Corporation, a research and development stage company, focuses on the development and commercialization of solid-state lithium-metal batteries for electric vehicles and other applications. The company was founded in 2010 and is headquartered in San Jose, California.