Review of Financial analysis: Kensington Capital Acquisition Corp. (NYSE:KCAC) has become the latest high-flying SPAC to become the focus of momentum chasers

Kensington Capital Acquisition Corp. (NYSE:KCAC has become the latest high-flying SPAC to become the focus of momentum chasers as it is set to undergo a merger with the EV battery startup QuantumScape.

In the reverse merger deal announced today, Kensington Capital – a Special Purpose Acquisition Company – and QuantumScape are slated to undergo amalgamation in the fourth quarter of 2020. For context, a SPAC raises funds through an IPO in order to acquire a private company. This allows the SPAC target to indirectly list on the stock exchange, eschewing the usually cumbersome process. The combined company, expected to list on the New York Stock Exchange (NYSE) under the symbol QS, currently has an implied enterprise value of $3.3 billion.

Kensington Capital has certainly chosen its acquisition target wisely. As an illustration, QuantumScape is one of the most promising battery startups to emerge in recent times, enjoying backing from the Microsoft (NASDAQ:MSFT 223.86 -3.36%) founder Bill Gates, Volkswagen, German auto supplier Continental, Chinese automaker SAIC Motor, and a number of venture capital firms. Back in June, Volkswagen increased its stake in the startup by $200 million, with much of the investment focused on solid-state battery research. As a refresher, Volkswagen had entered into a partnership with QuantumScape back in 2018 “for the next level of battery power for long-range e-mobility”.

 On 09-03-2k20 (Thursday) Shareholders tracking shares of Kensington Capital Acquisition Corp. (KCAC) belongs to Financial sector and Shell Companies industry. KCAC flaunted 49.70% to reach at $14.97 during previous trading session. KCAC Inc. has a total market value of N/A at the time of writing – representing $N/A outstanding shares. Turning to other widely-considered trading data, this company’s half yearly performance is observed at N/A.

Volume Evaluation

The USA listed company saw a recent price trade of $14.97 and 29,957,141 shares have traded hands in the session. There are 75.48K shares which are traded as an average over the last three months period.

Many investors forget that one of the defining characteristics of the stock market is that it’s a market. Buyers and sellers help determine the price of each stock, and the more buyers and sellers a particular stock has interested in it, the more liquid the market will be. Liquidity can have a profound impact on just how violently stock prices can move in either direction, and the reasons have to do with the nature of the market in a stock’s shares.

Trading volume, or volume, is the number of shares or contracts that indicates the overall activity of a security or market for a given period. Trading volume is an important technical indicator an investor uses to confirm a trend or trend reversal. Volume gives an investor an idea of the price action of a security and whether they should buy or sell the security.

Performance Levels

Looking performance record on shares of Kensington Capital Acquisition Corp. (KCAC) we observed that the stock has seen a move N/A over the last 52-week trading period. The stock generated performance of N/A tracking last 3 months. Investors will be anxiously watching to see if things will turn around and the stock will start gaining or losing momentum over the next few months. If we look back year-to-date, the stock has performed 1.01%. Shares are at 1.73% over the previous week and N/A over the past month.

Analyst Views:

Fluctuating the focus to what the Wall Street analysts are projecting, we can see that the current consensus target price on shares is $N/A. Analysts often put in a lot of work to study stocks that they cover. Wall Street analysts have a consensus recommendation of N/Aon this stock. This number falls on a one to five scale where a 1 would be considered a strong buy and 5 means a strong sell, 2 shows Buy, 3 Hold, 4 reveals Sell recommendation.

Volatility Insights

Watching some historical volatility numbers on shares of Kensington Capital Acquisition Corp. (KCAC) we can see that the 30 days volatility is presently N/A. The 7 days volatility is 0.83%. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

The company has a beta of N/A. 1.00 indicates that its price is correlated with the market. Less than 1.00 shows less volatility than the market. Beta greater than 1.00 indicates that the security’s price is theoretically more volatile than the market.

The Average True Range (ATR) value reported at 0.09. The average true range (ATR) is a technical analysis indicator that measures volatility by decomposing the entire range of an asset price for that period. A stock experiencing a high level of volatility has a higher ATR, and a low volatility stock has a lower ATR. The ATR may be used by market technicians to enter and exit trades, and it is a useful tool to add to a trading system. It was created to allow traders to more accurately measure the daily volatility of an asset by using simple calculations. The indicator does not indicate the price direction; rather it is used primarily to measure volatility caused by gaps and limit up or down moves. The ATR is fairly simple to calculate and only needs historical price data.

Technical Considerations

Kensington Capital Acquisition Corp. (KCAC) stock positioned 51.71% distance from the 200-day MA and stock price situated 51.71% away from the 50-day MA while located 51.71% off of the 20-day MA.

RSI value sited with reading of 54.55. Relative Strength Index (RSI) is an extremely useful and popular momentum oscillator. The RSI compares the magnitude of a stock’s recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100. It takes a single parameter, the number of time periods to use in the calculation. In his book, Wilder recommends using 14 periods.

Observing the Technical Indicators:

Kensington Capital Acquisition Corp. institutional ownership is held at N/A while insider ownership was N/A. As of now, KCAC has a P/S, P/E and P/B values of N/A, N/A and N/A respectively. Its P/Cash is valued at N/A. The Company’s net profit margin for the 12 months at 0. Comparatively, the gazes have a Gross margin N/A.

Profitability ratios:

Looking into the profitability ratios of KCAC stock, an investor will find its ROE, ROA, ROI standing at N/A, N/A and N/A, respectively.

Earnings per Share Details of Kensington Capital Acquisition Corp.:

The EPS of KCAC is strolling at N/A, measuring its EPS growth this year at N/A. As a result, the company has an EPS growth of N/A for the approaching year.

Given the importance of identifying companies that will ensure earnings per share at a tall rate, we later obsession to umpire how to identify which companies will achieve high amassing rates. One obvious showing off to identify high earnings per portion count together companies are to locate companies that have demonstrated such build up beyond the p.s. 5 to 10 years.

The payout ratio shows the proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage of the company’s earnings. The payout ratio can also be expressed as dividends paid out as a proportion of cash flow. The payout ratio is also known as the dividend payout ratio. The Company’s payout ratio was N/A and Price to free cash flow remained $N/A.

Jessica Wilson

About Jessica Wilson

I am Jessica Wilson Senior News Writer for I covers Financial sector and writes about hot Financial companies from an exclusive and “out of the box” perspective. Over the 7 years, I have built a network of resources within the financial sector I writes about. I hold MS degree in the field of Finance. My most recent work incorporates a promoting article on the portable site plan that objectives organizations hoping to make their sites amicable to versatile clients. The greater part of my articles mixes some type of examination with the composition process itself. I work on a full-time basis for Alpha Finews Update specializing in quicker moving active shares with a short-term view on investment opportunities and trends. I have been active in the markets for some years, and I mainly focused on long/short equities. Exceptionally qualified Senior Business Writer with over seven years of showed involvement in marketable strategies and awards.

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