Stocks

Traders Purchase Significant Volume of Call Options on QuantumScape (NYSE:QS)

Published January 6, 2025

QuantumScape Co. (NYSE:QS) experienced unusual options trading activity on Monday, attracting the attention of investors. A total of 104,382 call options were bought, marking a notable increase of around 210% compared to the typical volume of 33,628 call options.

Insider Moves at QuantumScape

In related news, insider Mohit Singh sold 97,305 shares of the company on December 27th. The sale was executed at an average price of $6.24, leading to a total transaction value of $607,183.20. Post-sale, Singh retains ownership of 1,092,020 shares, which are currently worth approximately $6,814,204.80. This transaction indicates an 8.18% reduction in their stake. The details of this sale are available in a filing with the SEC.

Additionally, the Chief Financial Officer, Kevin Hettrich, sold 34,607 shares on October 9th, at an average price of $5.49, totaling about $189,992.43. Following this transaction, Hettrich's direct ownership in QuantumScape amounts to 1,073,022 shares, approximately valued at $5,890,890.78, reflecting a 3.12% decrease in their position. Over the last 90 days, insiders sold a total of 571,067 shares, equating to $3,093,612. Currently, insiders hold 12.03% of the company's stock.

Institutional Investor Activity

Recent changes from institutional investors also shed light on QuantumScape’s stock dynamics. Bank of New York Mellon Corp increased its position by 1.3% during the second quarter, acquiring an additional 11,897 shares, now holding 930,614 shares valued at $4,579,000. Similarly, Commonwealth Equity Services LLC raised its stake by 2.6%, purchasing 9,290 shares to hold 367,887 shares valued at $1,810,000.

Moreover, CIBC Asset Management Inc entered a new position in QuantumScape during this time, while Arizona State Retirement System boosted its holdings by 4.6%, acquiring an additional 4,330 shares to own a total of 98,800 shares valued at $486,000. Ground Swell Capital LLC also made a new investment estimated at $95,000 in the second quarter. In total, 29.87% of QuantumScape's stock is owned by various hedge funds and institutional investors.

QuantumScape Stock Performance

On Monday, QuantumScape’s stock price increased by 11.8%, reaching $6.71. A total of 16,077,159 shares traded hands, lower than the average volume of 18,948,365 shares. The company boasts a market cap of $3.44 billion, a negative price-to-earnings ratio of -7.06, and a beta of 4.50. QuantumScape's stock has seen a yearly low of $4.65 and a high of $9.66, with a debt-to-equity ratio of 0.03 and a quick ratio of 14.07, indicating strong liquidity. The 50-day and 200-day simple moving averages are currently $5.16 and $5.66, respectively.

QuantumScape's most recent earnings report, released on October 23rd, showed an earnings per share of ($0.23), which fell short of analysts' expectations of ($0.21) by $0.02. This result matched the earnings reported during the same period last year. Analysts predict that QuantumScape will post an earnings per share of -0.99 for the current year.

Analyst Opinions on QuantumScape

Market analysts have been reviewing QuantumScape's stock. Truist Financial reaffirmed a “hold” rating with a raised price target of $7.00, up from $6.00, in their analysis dated October 25th. Deutsche Bank maintained a “hold” rating with a $6.00 price target on September 10th. Additionally, HSBC Global Research upgraded QuantumScape to a “hold” rating on November 19th. Currently, one analyst rates the stock as a sell, while six analysts have a hold rating, leading to a consensus rating of “Hold” and an average target price of $6.26, according to MarketBeat.com.

Company Overview

QuantumScape Corporation is a research and development company focused on innovating and commercializing solid-state lithium-metal batteries applicable in electric vehicles and beyond. Founded in 2010, the company has its headquarters in San Jose, California.