Is Buying Stock In QuantumScape Corporation (QS) A Good Move Today?


QuantumScape Corporation (NYSE:QS) saw an upside of 6.86% to close Monday at $8.26 after adding $0.53 on the day. The 5-day average trading volume is 7,299,800 shares of the company’s common stock. It has gained $8.37 in the past week and touched a new high 1 time within the past 5 days. An average of 6,865,595 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 7,501,504.

QS’s 1-month performance is 43.15% or $2.66 on its low of $5.11 reached on 12/28/22. The company’s shares have touched a 52-week low of $5.11 and high of $22.21, with the stock’s rally to the 52-week high happening on 01/17/23. YTD, QS has achieved 45.68% or $2.59 and has reached a new high 7 times. However, the current price is down -62.81% from the 52-week high price.

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Insider Transactions

QS stock investors last saw insider trading activity on Jan 12.Singh Mohit (Chief Development Officer) most recently sold 25,500 shares at $7.53 per share on Jan 12. This transaction cost the insider $191,918. Chief Development Officer, Singh Mohit, sold 8,500 shares at a price of $7.56 on Dec 13. Then, on Dec 01, Chief Development Officer Singh Mohit sold 6,843 shares at a price of $7.51 per share. This transaction amounted to $51,424.

Valuation Metrics

Moving on to other valuation ratios, the price-to-book (PB) in the most recent quarter is 2.59.

QuantumScape Corporation’s quick ratio for the period ended September 29 was 25.70, with the current ratio over the same period at 25.70. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.03, while the total debt to equity was 0.03. The firm’s gross profit as reported stood at $1.42 million against revenue of $215.27 million.

Earnings Surprise

For the quarterly period ending September 29 this year, QuantumScape Corporation’s cash and short-term investments amounted to $857.34 million. Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 113.05% to -$117.66 million, while revenue of -$94.83 million was 19.4% off the previous quarter. Analysts expected QS to announce -$0.21 per share in earnings in its latest quarter, but it posted -$0.27, representing a -28.60% surprise. EBITDA for the quarter stood at more than -$109.42 million. Shareholders hold equity totaling $435.96 million.

Let’s look briefly at QuantumScape Corporation (QS) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 69.80% to suggest the stock is trending Neutral, with historical volatility in this time period at 90.41%.

The stock’s 5-day moving average is $7.62, reflecting a -0.48% or -$0.04 change from its current price. QS is currently trading +42.41% above its 20-day SMA, -23.80% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +4.16% and SMA200 by-58.99%.

Stochastic %K and %D was 79.03% and 72.57% and the average true range (ATR) pointed at 0.58. The RSI (14) points at 65.29%, while the 14-day stochastic is at 96.45% with the period’s ATR at 0.56. The stock’s 9-day MACD Oscillator is pointing at 0.18 and 0.85 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for QuantumScape Corporation (NYSE: QS), Goldman downgraded it to a Sell rating. They previously had a Neutral rating on the stock. Analysts offering their rating for QS stock have a consensus rating for the stock as Underweight. Currently, 2 brokerage advisors rate QS as a “sell,”, while 4 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 0 have offered a “buy” rating.

What is QS’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $4.00 and a high of $14.00, with their median price target at $10.00. Looking at these predictions, the average price target given by analysts is for QuantumScape Corporation (QS) stock is $9.14.


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