QuantumScape Corp (QS) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

QuantumScape Corp (NYSE: QS) stock jumped 3.06% on Friday to $6.06 against a previous-day closing price of $5.88. With 5.3 million shares changed hands, the volume of the stock remained heavier than its average volume of 4.95 million shares. During the session, the Auto Parts company that operates in wider Consumer Cyclical sector, reached to the highest price of $6.08 whereas the lowest price it dropped to was $5.80. The 52-week range on QS shows that it touched its highest point at $13.86 and its lowest point at $4.99 during that stretch. It currently has a 1-year price target of $6.69. Beta for the stock currently stands at 5.02.

Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of QS was up-trending over the past week, with a rise of 10.79%, but this was down by -0.33% over a month. Three-month performance dropped to -12.43% while six-month performance rose 0.33%. The stock lost -18.33% in the past year, while it has gained 6.88% so far this year. A look at the trailing 12-month EPS for QS yields -0.98 with Next year EPS estimates of -0.80. For the next quarter, that number is -0.19. This implies an EPS growth rate of -0.90% for this year and 16.08% for next year.

Float and Shares Shorts:

At present, 358.50 million QS shares are outstanding with a float of 322.06 million shares on hand for trading. On Oct 30, 2023, short shares totaled 54.04 million, which was 11.04% higher than short shares on Sep 28, 2023. In addition to Mr. Jagdeep Singh as the firm’s Co-Founder, Chairman & CEO, Prof. Friedrich Prinz Ph.D. serves as its Co-Founder, Chief Scientific Advisor & Board Member.

Institutional Ownership:

Through their ownership of 32.12% of QS’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 21.29% of QS, in contrast to 14.77% held by mutual funds. Shares owned by individuals account for 14.41%. As the largest shareholder in QS with 6.81% of the stake, The Vanguard Group, Inc. holds 28,584,186 shares worth 28,584,186. A second-largest stockholder of QS, BlackRock Fund Advisors, holds 12,576,826 shares, controlling over 2.99% of the firm’s shares. BNP Paribas Asset Management UK L is the third largest shareholder in QS, holding 6,588,258 shares or 1.57% stake. With a 2.35% stake in QS, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 9,861,301 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 1.93% of QS stock, is the second-largest Mutual Fund holder. It holds 8,120,130 shares valued at 42.39 million. BNP Paribas Funds – Energy Transi holds 1.54% of the stake in QS, owning 6,481,899 shares worth 33.84 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for QS since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With QS analysts setting a high price target of $10.00 and a low target of $3.00, the average target price over the next 12 months is $6.69. Based on these targets, QS could surge 65.02% to reach the target high and fall by -50.5% to reach the target low. Reaching the average price target will result in a growth of 10.4% from current levels.

Summary of Insider Activity:

Insiders traded QS stock several times over the past three months with 7 Buys and 7 Sells. In these transactions, 134,423 shares were bought while 120,808 shares were sold. The number of buy transactions has increased to 51 while that of sell transactions has risen to 67 over the past year. The total number of shares bought during that period was 5,135,357 while 2,645,222 shares were sold.