Multiple corporate insiders sold a total of $27.83 million worth of QuantumScape (QS) shares on October 24, capitalizing on the stock price surge following its solid Q3 earnings beat. Director Fritz Prinz sold the largest portion, amounting to $15.48 million. Another Director, Brad Buss, sold QS shares worth about $6.30 million.
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Additionally, QuantumScape CEO Srinivasan Sivaram sold shares worth $2.03 million. Meanwhile, Chief Development Officer Mohit Singh sold $3.32 million, and Chief Legal Officer Michael McCarthy sold $705,989 worth of company shares.
QuantumScape develops next-generation solid-state lithium-metal battery technology primarily for electric vehicles (EVs). On October 22, the company reported a diluted loss of $0.18 per share, better than the consensus estimate of a $0.20 loss. Also, customer billings of $12.8 million came ahead of the consensus of $10 million.
A Closer Look at the Insider Transactions
According to separate Form 4 filings with the SEC on October 28, the insiders sold shares in multiple tranches on October 24.
Currently, QS stock has a Very Negative Insider Confidence Signal on TipRanks, based on Informative Sell transactions exceeding $34 million, undertaken in the last three months.
Insider share sales usually indicate caution about a company’s future, but can also happen for personal reasons. Hence, it is important to watch these trades for clues on the company’s growth expectations.
Is QuantumScape Stock a Good Investment?
Following the Q3 print, two analysts reiterated their “Hold” rating on QS stock, and one maintained a “Sell.” However, Evercore ISI analyst Chris McNally reaffirmed his “Buy” rating on QuantumScape with a price target of $8, implying 48.7% downside potential.
Analysts prefer to remain sidelined on QuantumScape currently. On TipRanks, QS stock has a Hold consensus rating based on one Buy, three Holds, and one Sell rating. The average QuantumScape price target of $9.13 implies 41.4% downside potential from current levels. Meanwhile, QS stock has surged over 200% year-to-date.
