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, totaling approximately $281,150. These sales were conducted under a pre-arranged Rule 10b5-1 trading plan.
Additionally, Hettrich exercised options to acquire 34,607 shares at a price of $2.377 per share, amounting to $82,260. Following these transactions, Hettrich holds 1,022,743 shares directly, which includes restricted stock units and performance restricted stock units subject to vesting conditions.
QuantumScape, based in San Jose, specializes in developing next-generation solid-state lithium-metal batteries.
In other recent news, QuantumScape has reported significant developments in its operations. The company has begun low-volume production of its B Sample cells, the QSE-5, marking a crucial milestone as these are the first anode-free solid-state lithium metal cells designed for automotive applications. QuantumScape's Q3 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 CapEx guidance for 2024 but maintained a strong liquidity position.
HSBC has adjusted its rating for QuantumScape from Reduce to Hold, citing the company's shift in strategy towards 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 targeted volumes, leading to a wide range of potential outcomes.
Truist Securities and TD Cowen both maintained a Hold rating on QuantumScape. The firms acknowledged QuantumScape's progress in cell development, manufacturing advancements, and operational efficiencies, emphasizing that the company is on track to produce high-volume B-samples by the fiscal year 2025. QuantumScape's collaboration with VW PowerCo under a licensing agreement, which includes a $130 million prepayment, is expected to play a crucial role in the future production and distribution of QuantumScape's C-samples and subsequent products. These are recent developments in QuantumScape's operations and strategic partnerships.
InvestingPro Insights
As QuantumScape's CFO Kevin Hettrich adjusts his stock holdings, investors may benefit from a closer look at the company's financial health. According to InvestingPro data, QuantumScape's market capitalization stands at $2.64 billion, reflecting its position in the competitive electric vehicle battery sector.
InvestingPro Tips reveal that QuantumScape holds 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 not currently profitable, with an adjusted operating income of -$521.16 million over the last twelve months as of Q3 2023.
The stock's volatility, as noted by another InvestingPro Tip, is evident in its recent price movements. QuantumScape has seen a 1-week price total return of 8.86%, contrasting with a year-to-date return of -25.76%. This volatility may be attributed to the speculative nature of the company's technology and its pre-revenue status.
Analysts' sentiment appears cautious, with InvestingPro reporting that two analysts have revised their earnings downwards for the upcoming 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 seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 5 more InvestingPro Tips available for QuantumScape, providing a deeper understanding of the company's financial position and market outlook.
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