Have Insiders Sold QuantumScape Shares Recently?

Anyone interested in QuantumScape Corporation (NYSE:QS) should probably be aware that the Chief Legal Officer & Head of Corporate Development, Michael McCarthy, recently divested US$399k worth of shares in the company, at an average price of US$5.23 each. The eyebrow raising move amounted to a reduction of 23% in their holding.

View our latest analysis for QuantumScape

The Last 12 Months Of Insider Transactions At QuantumScape

In fact, the recent sale by Chief Legal Officer & Head of Corporate Development Michael McCarthy was not their only sale of QuantumScape shares this year. They previously made an even bigger sale of -US$1.0m worth of shares at a price of US$6.58 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$5.18. So it is hard to draw any strong conclusion from it.

QuantumScape insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of QuantumScape

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. QuantumScape insiders own 8.8% of the company, currently worth about US$234m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At QuantumScape Tell Us?

An insider sold stock recently, but they haven't been buying. 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. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 3 warning signs for QuantumScape (1 is concerning) you should be aware of.

Of course QuantumScape may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.