QuantumScape (NYSE:QS) Shares Down 2% - What Factors Are Affecting the Stock?

QuantumScape Co. (NYSE:QS) experienced a 2% decrease in its share price during trading on Monday. The stock reached a low of $4.98 and was last seen trading at $5.06. A total of approximately 3,919,529 shares changed hands, which is a significant drop of 77% compared to the average daily trading volume of 17,209,998 shares. The previous closing price for the stock was $5.16.

Analyst Ratings and Market Responses

Several financial analysts have recently provided their insights on QuantumScape shares. HSBC Global Research upgraded the rating of QuantumScape to "hold" in a recent report published on November 19th. Truist Financial also reiterated a "hold" rating while adjusting its price target from $6.00 to $7.00 on October 25th. Moreover, HSBC raised its stance on the stock from "reduce" to "hold," establishing a price objective of $5.30 as of November 19th. Currently, one research analyst has issued a sell rating, and six have provided a hold rating, creating an overall consensus rating of "Hold" with an average target price of $6.26, according to MarketBeat.com.

Recent Trading Trends

In recent trading activity, QuantumScape shares fell by 3.4%. The company holds a fifty-day moving average of $5.28 and a two-hundred-day average of $5.70. With a market capitalization of $2.55 billion, the company reports a price-to-earnings ratio of -5.25 and a beta of 4.46, indicating higher volatility. QuantumScape also displays robust liquidity with a current ratio of 14.07, a quick ratio of 14.07, and a notably low debt-to-equity ratio of 0.03.

Insider Transactions

In other developments concerning QuantumScape, Director Jagdeep Singh sold 5,531 shares of the stock on November 14th at an average price of $5.01, bringing in a total of $27,710.31. After this transaction, Singh retained 2,590,583 shares, estimated at a value of approximately $12,978,820.83, reflecting a 0.21% decrease in his ownership stake. Additionally, insider Michael O. McCarthy III sold 27,305 shares on November 21st at an average price of $5.07, totaling $138,436.35. Following this sale, he now owns 1,129,167 shares valued around $5,724,876.69, which is a 2.36% reduction in his shares. Over the last three months, insiders have sold a combined 536,460 shares of QuantumScape stock, amounting to about $2,903,619. Currently, insiders hold 12.03% of QuantumScape's stock.

Institutional Investment Trends

In terms of institutional trading, several investors have adjusted their holdings in QuantumScape. Heck Capital Advisors LLC initiated a position in the stock during the fourth quarter, valued at $26,000. Meanwhile, Signaturefd LLC increased its stake by 79.9% in the third quarter, owning 4,838 shares now valued at $28,000 after adding 2,148 shares recently. Additionally, International Assets Investment Management LLC saw its stake grow by 475.1% in the same quarter, now possessing 5,118 shares worth $29,000 after acquiring 4,228 shares. Blue Trust Inc. expanded its investment in QuantumScape by 208.8% in the fourth quarter, with ownership of 6,738 shares valued at $39,000 following a purchase of 4,556 shares. Lastly, Centaurus Financial Inc. also bought shares worth about $52,000 in the second quarter. Overall, institutional and hedge fund investors hold approximately 29.87% of the company's stock.

About QuantumScape

QuantumScape Corporation is a research and development company specializing in solid-state lithium-metal batteries aimed at electric vehicles and other applications. Founded in 2010 and based in San Jose, California, the company is focused on advancing battery technology to enhance electric vehicle performance.

Investment Considerations

Before making investment decisions regarding QuantumScape, it's essential to weigh the potential risks associated with the company's current standing in the market. Despite having a "Reduce" rating from analysts, investors are encouraged to explore alternative stocks that have been suggested as better opportunities.

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