Quantum (NASDAQ:QMCO) Shares Gap Up Following Earnings Beat

Quantum Corporation (NASDAQ:QMCO)’s share price gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $16.99, but opened at $19.00. Quantum shares last traded at $17.9150, with a volume of 1,164,552 shares.

The company reported $0.25 EPS for the quarter, beating the consensus estimate of $0.12 by $0.13. The firm had revenue of $89.63 million during the quarter, compared to analysts’ expectations of $82.30 million. Quantum has set its Q3 2027 guidance at 0.100-0.300 EPS.

Quantum News Roundup

Here are the key news stories impacting Quantum this week:

• Positive Sentiment: Fiscal Q2 revenue rose 42.9% year over year to $89.6 million, ahead of analyst estimates, while reported EPS of $0.25 also topped expectations. Gross margin improved, and Quantum cited strong demand and a record order backlog. Quantum Q2 results
• Positive Sentiment: Q3 2027 guidance calls for revenue of $89 million to $93 million, above the $85.5 million consensus, and EPS of $0.10 to $0.30, broadly around or above expectations. Quantum Q2 results and outlook
• Positive Sentiment: Cantor Fitzgerald raised its price target from $29 to $32 and reiterated an “overweight” rating, signaling analyst confidence in the outlook. Price-target update
• Neutral Sentiment: Despite the reported $0.25 per-share earnings figure, Quantum posted a $44.9 million net loss attributable to common shareholders. The earnings figure and the GAAP net loss reflect different measures, so investors may focus on the quality and sustainability of profitability. Q2 financial details
• Negative Sentiment: Company insiders reported open-market sales during the past six months, including sales by the CEO and chief revenue officer. These transactions may weigh on sentiment, although the reported sales were limited in scale. Insider trading details

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on QMCO. Northland Securities upgraded shares of Quantum from a “market perform” rating to an “outperform” rating and set a $24.00 price objective for the company in a research note on Tuesday, August 11th. Lake Street Capital set a $29.00 target price on Quantum and gave the company a “buy” rating in a report on Monday, September 14th. Litchfield Hills Research initiated coverage on Quantum in a research report on Monday, August 10th. They set a “buy” rating on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Quantum in a report on Monday, September 21st. Finally, Wall Street Zen upgraded shares of Quantum from a “hold” rating to a “buy” rating in a research report on Saturday, August 15th. Five equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Quantum has a consensus rating of “Moderate Buy” and a consensus price target of $28.33.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Alyeska Investment Group L.P. purchased a new stake in Quantum during the second quarter valued at about $29,193,000. Two Seas Capital LP purchased a new position in shares of Quantum in the 2nd quarter worth about $27,374,000. Manatuck Hill Partners LLC purchased a new position in shares of Quantum in the 2nd quarter worth about $3,850,000. BlackRock Inc. bought a new position in shares of Quantum during the 2nd quarter valued at about $3,003,000. Finally, Bank of America Corp DE increased its position in shares of Quantum by 730.5% during the 2nd quarter. Bank of America Corp DE now owns 170,130 shares of the company’s stock valued at $1,871,000 after purchasing an additional 149,645 shares during the last quarter. 63.66% of the stock is currently owned by hedge funds and other institutional investors.

Quantum Trading Up 4.8%

The company has a market capitalization of $701.50 million, a PE ratio of -1.35 and a beta of 3.23. The stock has a fifty day moving average of $23.95 and a two-hundred day moving average of $13.34.

About Quantum

Quantum Corporation (NASDAQ: QMCO) provides data storage, management and protection solutions for organizations that generate and retain large volumes of unstructured data. Its offerings are designed to help customers store, protect, archive and access information across on-premises, cloud and hybrid environments.

The company’s product portfolio has included Scalar tape libraries and LTO tape storage products, DXi deduplication and backup appliances, and software-defined storage solutions such as ActiveScale object storage.