Quantum (NASDAQ:QMCO) Stock Price Up 11.4% Following Better-Than-Expected Earnings

Quantum Corporation (NASDAQ:QMCO) shares traded up 11.4% during mid-day trading on Monday after the company announced better than expected quarterly earnings. The stock traded as high as $16.11 and last traded at $16.1210. 235,688 shares traded hands during mid-day trading, a decline of 79% from the average session volume of 1,121,035 shares. The stock had previously closed at $14.47.

The company reported $0.25 earnings per share for the quarter, topping analysts’ consensus estimates 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 had a negative net margin of 73.54% and a negative return on equity of 3.52%. Quantum has set its Q3 2027 guidance at 0.100-0.300 EPS.

More Quantum News

Here are the key news stories impacting Quantum this week:

• Positive Sentiment: Revenue rose 42.9% year over year to $89.6 million, ahead of estimates, while reported EPS of $0.25 also beat consensus. Gross margin expanded to 41%. The company guided for Q3 revenue of $89–$93 million, above the roughly $85.5 million analyst estimate. Quantum Q2 results
• Positive Sentiment: Demand indicators were strong: hyperscale tape demand increased more than 2.6 times and backlog approached $100 million, supporting potential future sales. Zacks earnings call coverage
• Positive Sentiment: Cantor Fitzgerald raised its price target from $29 to $32 and maintained an Overweight rating, signaling improved analyst confidence. Cantor Fitzgerald rating
• Neutral Sentiment: Short-interest figures conflict: one report listed 4.5 million shares sold short at Oct. 30, up 46.4% from mid-October, while another reported zero as of Nov. 10. The later figure appears inconsistent, so the data does not provide a dependable short-interest signal.
• Negative Sentiment: Component shortages may limit how much of the strong demand and backlog Quantum can convert into Q3 revenue. Zacks earnings call coverage
• Negative Sentiment: Despite the EPS beat, a separate financial summary reported a $44.9 million net loss attributable to common shareholders, highlighting that underlying profitability remains a concern. That summary also noted insider sales and no insider purchases in the past six months.

Analyst Ratings Changes

A number of research analysts have recently commented on QMCO shares. Lake Street Capital set a $29.00 price objective on shares of Quantum and gave the company a “buy” rating in a research report on Monday, September 14th. Cantor Fitzgerald upped their target price on Quantum from $29.00 to $32.00 and gave the company an “overweight” rating in a research note on Tuesday. Wall Street Zen raised Quantum from a “hold” rating to a “buy” rating in a research report on Saturday, August 15th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Quantum in a research note on Monday, September 21st. Finally, Litchfield Hills Research initiated coverage on shares of Quantum in a report on Monday, August 10th. They issued a “buy” rating on the stock. Five investment 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, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $28.33.

Institutional Trading of Quantum

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in QMCO. State Street Corp boosted its position in shares of Quantum by 4.3% in the 2nd quarter. State Street Corp now owns 75,914 shares of the company’s stock worth $835,000 after purchasing an additional 3,100 shares during the last quarter. Squarepoint Ops LLC bought a new stake in Quantum during the 2nd quarter worth about $372,000. Susquehanna Fundamental Investments LLC bought a new stake in Quantum during the 2nd quarter worth about $381,000. Man Group plc bought a new stake in Quantum during the 2nd quarter worth about $755,000. Finally, Sona Asset Management US LLC acquired a new position in shares of Quantum during the 1st quarter worth about $333,000. 63.66% of the stock is currently owned by institutional investors and hedge funds.

Quantum Stock Performance

The company has a market cap of $642.38 million, a P/E ratio of -1.50 and a beta of 3.23. The company has a fifty day moving average price of $23.79 and a two-hundred day moving average price of $13.39.

Quantum Company Profile

Quantum Corporation provides data storage and management solutions for organizations that create and retain large volumes of unstructured data, including video, images and other digital content. Its customers include businesses and institutions in areas such as media and entertainment, government, life sciences and industrial markets. The company’s offerings include StorNext shared-storage and data-management software, Scalar tape libraries for backup and archiving, and ActiveScale object storage.