Insiders who sold US$1.2m worth of QuantumScape Corporation …

QuantumScape Corporation’s (NYSE:QS) stock rose 7.9% last week, but insiders who sold US£1.2m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US£8.99, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale. While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for QuantumScape

The Last 12 Months Of Insider Transactions At QuantumScape

In the last twelve months, the biggest single sale by an insider was when the Chief Financial Officer, Kevin Hettrich, sold US£629k worth of shares at a price of US£9.15 per share. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. It’s of some comfort that this sale was conducted at a price well above the current share price, which is US£8.18.

So it may not tell us anything about how insiders feel about the current share price. Insiders in QuantumScape didn’t buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below.

By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volumeNYSE:QS Insider Trading Volume April 2nd 2023

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At QuantumScape Have Sold Stock Recently

Over the last three months, we’ve seen significant insider selling at QuantumScape. In total, insiders dumped US£1.2m worth of shares in that time, and we didn’t record any purchases whatsoever. In light of this it’s hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders.

I reckon it’s a good sign if insiders own a significant number of shares in the company. QuantumScape insiders own about US£351m worth of shares (which is 9.7% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The QuantumScape Insider Transactions Indicate?

Insiders haven’t bought QuantumScape stock in the last three months, but there was some selling.

And even if we look at the last year, we didn’t see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing QuantumScape.

To help with this, we’ve discovered 6 warning signs (2 shouldn’t be ignored!) that you ought to be aware of before buying any shares in QuantumScape. But note: QuantumScape may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Valuation is complex, but we’re helping make it simple.

Find out whether QuantumScape is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

Simply Wall St has no position in any stocks mentioned.

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