Some QuantumScape Corporation (NYSE:QS) shareholders may be a little concerned to see that the Co-Founder, Friedrich Prinz, recently sold a substantial US$11m worth of stock at a price of US$22.69 per share. That's a big disposal, and it decreased their holding size by 50%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At QuantumScape
In the last twelve months, the biggest single sale by an insider was when the CO-Founder & CTO, Timothy Holme, sold US$13m worth of shares at a price of US$26.74 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$22.03. So it may not tell us anything about how insiders feel about the current share price.
All up, insiders sold more shares in QuantumScape than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Insider Ownership of QuantumScape
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that QuantumScape insiders own 11% of the company, worth about US$1.0b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At QuantumScape Tell Us?
The stark truth for QuantumScape is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing QuantumScape. At Simply Wall St, we found 3 warning signs for QuantumScape that deserve your attention before buying any shares.
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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.
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