QuantumScape Corporation (NYSE:QS) Receives Consensus Recommendation of “Reduce” from Brokerages

Shares of QuantumScape Corporation (NYSE:QS) have been assigned an average rating of “Reduce” from the six research firms that are currently covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating and five have issued a hold rating on the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $11.1333.

Separately, TD Cowen restated a “hold” rating on shares of QuantumScape in a report on Friday.

QuantumScape Trading Down 5.0%

Shares of NYSE:QS traded down $0.25 during mid-day trading on Friday, hitting $4.86. The stock had a trading volume of 3,558,479 shares, compared to its average volume of 19,525,516. QuantumScape has a 12-month low of $4.85 and a 12-month high of $19.07. The company has a debt-to-equity ratio of 0.02, a quick ratio of 21.14 and a current ratio of 21.14. The company has a market cap of $2.99 billion, a PE ratio of -5.97 and a beta of 2.61. The company’s 50 day moving average is $7.40 and its 200-day moving average is $7.72.

QuantumScape (NYSE:QS) last announced its quarterly earnings data on Wednesday, July 22nd. The company reported ($0.16) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.18) by $0.02. The business’s quarterly revenue was up .0% on a year-over-year basis. During the same period in the previous year, the company earned ($0.20) earnings per share. On average, sell-side analysts predict that QuantumScape will post -0.82 EPS for the current year.

QuantumScape News Summary

Here are the key news stories impacting QuantumScape this week:

• Positive Sentiment: QuantumScape beat Q2 EPS expectations, reported a narrower loss, and posted $10.8 million in customer billings, which suggests progress toward commercialization. QuantumScape Q2 Earnings Beat Estimates on Eagle Line Gains
• Positive Sentiment: The company highlighted expanding opportunities beyond EVs, including Honda, Volkswagen’s PowerCo, AI data centers, aerospace, and defense, which could broaden its long-term addressable market. QS Q2 Earnings Call Focuses on Honda and New Markets
• Neutral Sentiment: Options activity spiked ahead of and around earnings, signaling traders were expecting a large move but not necessarily giving a directional read on fundamentals.
• Negative Sentiment: Despite the earnings beat, shares slid as investors focused on concerns including limited profitability improvement, the still-early commercialization timeline, and questions around the strength of key partnerships. Deeper dive: why QuantumScape stock’s post-earnings decline makes sense
• Negative Sentiment: Analysts and market commentary also pointed to a broader selloff in tech and solid-state battery stocks, which added pressure and helped drive QS to 52-week lows. Why Did SPCX, ORCL, QS Stocks Plunge To 52-Week Lows Today?
• Negative Sentiment: Some commentary argues the stock remains expensive relative to fundamentals and that key customer support, especially around PowerCo, may be less robust than investors had hoped. QuantumScape: Plan Keeps Changing While The Clock Is Ticking

Insider Transactions at QuantumScape

In other news, Director Jeffrey B. Straubel sold 27,106 shares of the firm’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $7.85, for a total transaction of $212,782.10. Following the transaction, the director owned 131,298 shares in the company, valued at approximately $1,030,689.30. This trade represents a 17.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CTO Timothy Holme sold 150,320 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $9.30, for a total value of $1,397,976.00. Following the transaction, the chief technology officer owned 1,712,506 shares in the company, valued at approximately $15,926,305.80. This trade represents a 8.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 737,540 shares of company stock worth $5,967,115 in the last 90 days. 3.93% of the stock is owned by insiders.

Hedge Funds Weigh In On QuantumScape

Institutional investors have recently made changes to their positions in the business. AQR Capital Management LLC bought a new position in QuantumScape in the 1st quarter worth approximately $321,000. NewEdge Advisors LLC lifted its position in QuantumScape by 50.4% in the first quarter. NewEdge Advisors LLC now owns 21,224 shares of the company’s stock worth $88,000 after purchasing an additional 7,111 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of QuantumScape by 456.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,759,334 shares of the company’s stock worth $19,799,000 after acquiring an additional 3,904,168 shares during the period. Prudential Financial Inc. lifted its stake in QuantumScape by 41.4% during the second quarter. Prudential Financial Inc. now owns 31,439 shares of the company’s stock worth $211,000 after purchasing an additional 9,210 shares during the period. Finally, Russell Investments Group Ltd. lifted its position in shares of QuantumScape by 685.5% during the 2nd quarter. Russell Investments Group Ltd. now owns 3,794 shares of the company’s stock worth $25,000 after buying an additional 3,311 shares during the period. 29.87% of the stock is currently owned by institutional investors.

About QuantumScape

QuantumScape Corporation is a development-stage company specializing in the research and commercialization of next-generation solid-state lithium-metal batteries for electric vehicles. The company’s core technology replaces the traditional liquid electrolyte with a solid ceramic separator, aiming to deliver higher energy density, faster charging times and enhanced safety compared to conventional lithium-ion cells. QuantumScape’s product roadmap focuses on enabling electric vehicle manufacturers to extend driving range and reduce charging downtime, addressing key barriers to widespread EV adoption.

Founded in 2010 and headquartered in San Jose, California, QuantumScape has attracted significant strategic investment and formed partnerships with leading automotive OEMs.