SAN JOSE, CA—Kevin Hettrich, chief financial officer of QuantumScape Corp (NYSE:QS), recently executed a series of stock transactions, according to a filing with the Securities and Exchange Commission. On November 21, Hettrich sold 55,647 shares of Class A common stock at an average price of $5.0524, for a total of approximately $281,150. These sales were made pursuant to a pre-established Rule 10b5-1 business plan.
Additionally, Hettrich exercised options to acquire 34,607 shares at a price of $2.377 per share, for a consideration of $82,260. Following these transactions, Hettrich owns 1,022,743 shares directly, including restricted stock units and performance restricted stock units subject to vesting conditions.
San Jose-based QuantumScape specializes in the development of next-generation solid-state lithium-metal batteries.
In other recent news, QuantumScape has reported important developments in its operations. The company has begun low-volume production of its B-sample QSE-5 cells, marking a crucial milestone as they are the first anode-free solid-state lithium metal cells designed for automotive applications. QuantumScape’s third-quarter financial results revealed a GAAP net loss of $119.7 million and an adjusted EBITDA loss of $71.6 million. In response to these findings, the company revised its full-year adjusted EBITDA loss and 2024 CapEx guidance, but maintained a strong liquidity position.
HSBC has adjusted its rating on QuantumScape from Reduce to Hold, citing the company’s shift in strategy toward licensing its technology. This change was influenced by QuantumScape’s recent licensing agreement with VW’s PowerCo, a significant development in the solid-state battery sector. However, HSBC noted a lack of clarity regarding royalty rates and target volumes, leading to a wide range of potential outcomes.
Truist Securities and TD Cowen maintained a Hold rating on QuantumScape. The companies recognized QuantumScape’s progress in cell development, manufacturing advancements and operational efficiencies, and emphasized that the company is on track to produce high-volume B samples by fiscal 2025. QuantumScape’s collaboration with VW PowerCo under a licensing agreement, which includes a prepayment of $130 million is expected to play a crucial role in the future production and distribution of the C samples of QuantumScape and its subsequent products. These are recent developments in QuantumScape’s operations and strategic partnerships.
InvestingPro Insights
As QuantumScape CFO Kevin Hettrich adjusts his stock holdings, investors may benefit from a closer look at the company’s financial health. According to data from InvestingPro, QuantumScape’s market capitalization stands at $2.64 billion, reflecting its position in the competitive electric vehicle battery sector.
InvestingPro tips reveal that QuantumScape has more cash than debt on its balance sheet, which could provide financial flexibility as the company continues to develop its solid-state battery technology. This cash position is particularly important given that the company is currently not profitable, with adjusted operating income of -$521.16 million for the trailing twelve months to the third quarter of 2023.
The stock’s volatility, as noted in another InvestingPro tip, is evident in its recent price movements. QuantumScape has seen a 1-week total price return of 8.86%, in contrast to a year-to-date return of -25.76%. This volatility can be attributed to the speculative nature of the company’s technology and its pre-revenue status.
Analyst sentiment appears cautious: InvestingPro reports that two analysts have revised down their earnings for the coming period. This aligns with the expectation that the company will not be profitable this year, underscoring the long-term nature of QuantumScape’s battery development efforts.
For investors looking for a more comprehensive analysis, InvestingPro offers additional advice and information beyond what is mentioned here. In fact, there are five more InvestingPro tips available for QuantumScape, providing a deeper understanding of the company’s financial position and market outlook.
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