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

QuantumScape Co. (NYSE:QS) has recently been assigned an average recommendation of 'Reduce' by eight brokerages covering the company, according to reports. Out of these analysts, one has provided a sell recommendation, while the remaining seven have suggested holding the stock.

The average target price set by these analysts over the next 12 months is $6.26, reflecting a cautious outlook on the stock’s performance.

Analyst Ratings and Price Targets

Several research firms have issued their views on QuantumScape’s stock. Wolfe Research kicked off coverage on September 5 with an 'underperform' rating. Truist Financial reaffirmed a 'hold' rating and increased its price target from $6.00 to $7.00 in a report released on October 25. Likewise, Deutsche Bank maintained a 'hold' rating with a price target of $6.00 on September 10. HSBC upgraded the stock from a 'reduce' rating to a 'hold' status, setting a price target of $5.30 on November 19.

Insider Transactions

Recent insider trading activity has also been notable. On December 9, Director Jagdeep Singh sold 308,097 shares at an average price of $5.30, totaling approximately $1.63 million. Post-transaction, Singh retains ownership of 2,563,767 shares, valued at about $13.59 million, indicating a 10.73% drop in his holdings.

Additionally, CFO Kevin Hettrich sold 29,667 shares on December 5 for an average price of $5.10, amounting to around $151,302. After this sale, Hettrich holds 1,024,325 shares valued at approximately $5.22 million, marking a 2.81% decrease in ownership. Over the last ninety days, insiders have sold a total of 1,039,821 shares worth about $5.77 million, and corporate insiders own around 12.03% of the stock.

Institutional Investments

Various institutional investors and hedge funds have made adjustments to their positions in QuantumScape. For instance, 180 Wealth Advisors LLC enhanced its stake by 2.7% in the second quarter, now owning 79,741 shares valued at $392,000. Signaturefd LLC raised its investment by 79.9% in the third quarter, acquiring additional shares to reach a total of 4,838 shares worth $28,000. CWM LLC and Farther Finance Advisors LLC also increased their stakes in the company over the last quarter.

Overall, approximately 29.87% of QuantumScape's shares are held by hedge funds and other institutional investors, showing significant interest from larger financial entities.

Stock Performance Insights

At the close of the previous trading session, QuantumScape shares were priced at $5.01. The company boasts a market capitalization of $2.56 billion, alongside a negative P/E ratio of -5.27 and a beta rating of 4.50, indicating high volatility. Its debt-to-equity ratio stands at 0.03, with a remarkable current ratio of 14.07 and the same quick ratio. Over the past year, shares have traded between a low of $4.65 and a high of $10.03, with its fifty-day and two-hundred-day moving averages around $5.26 and $5.69, respectively.

In its most recent earnings report on October 23, QuantumScape reported a loss of $0.23 per share, which fell short of analysts’ expectations. Predictions suggest that the company may post a loss of $0.99 per share for the current fiscal year.

About QuantumScape

QuantumScape Corporation, founded in 2010 and based in San Jose, California, is a company focused on the development and commercialization of solid-state lithium-metal batteries primarily for electric vehicles and other applications.

QuantumScape, Brokerages, Stocks