SAN JOSE, Calif.—Jagdeep Singh, a director at QuantumScape Corp (NYSE:QS), recently sold 308,097 shares of the company's Class A common stock, amounting to approximately $1.63 million. The transaction took place on December 9, with shares sold at a weighted average price of $5.3029, according to a filing with the Securities and Exchange Commission. The sale comes as the company's stock, which InvestingPro data shows has a beta of 4.5, continues to demonstrate significant volatility, having declined nearly 28% year-to-date.
In a separate transaction on the same day, Singh sold an additional 92,444 shares for about $490,221. These shares were also sold at the same average price of $5.3029. Both transactions were executed under a Rule 10b5-1 trading plan adopted in March 2024, allowing for pre-scheduled stock sales. According to InvestingPro, QuantumScape maintains a strong liquidity position with a current ratio of 14.07, suggesting robust short-term financial stability.
Prior to these sales, Singh exercised stock options to acquire 308,097 shares at a price of $1.3128 per share, totaling $404,469. Following the transactions, Singh directly owns 2,563,767 shares and indirectly holds 5,600,858 shares through trusts, as noted in the filing. The company, currently valued at $2.57 billion, holds more cash than debt on its balance sheet, one of several key insights available through InvestingPro's comprehensive analysis platform.
In other recent news, QuantumScape, a leader in solid-state lithium-metal batteries, reported a GAAP net loss of $119.7 million and an adjusted EBITDA loss of $71.6 million in Q3. The company revised its financial guidance for 2024, lowering its full-year adjusted EBITDA loss and CapEx guidance, while maintaining a strong liquidity position. QuantumScape has also initiated the low-volume production of its B Sample QSE-5 cells, marking a significant milestone as these are the first anode-free solid-state lithium metal cells for automotive applications.
Analyst firms HSBC, Truist Securities, and TD (TSX:TD) Cowen have all adjusted their ratings on QuantumScape stock to Hold. HSBC shifted its rating from Reduce to Hold, citing recent technological advancements and the company's strategic shift towards licensing its technology. However, uncertainties regarding targeted volumes and royalty rates have led to a wide range of potential outcomes.
QuantumScape's recent developments include a licensing agreement with VW's PowerCo, expected to significantly influence the future production and distribution of the company's products. Furthermore, QuantumScape anticipates that the Cobra heat treatment equipment, critical for high-volume B-sample production, will be operational by the end of 2024. These recent developments reflect QuantumScape's ongoing progress in cell development, manufacturing advancements, and operational efficiencies.
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