Quantum (NASDAQ:QMCO) Stock Price Up 11.4% After Strong Earnings

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

The company reported $0.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.12 by $0.13. Quantum had a negative return on equity of 3.52% and a negative net margin of 73.54%. The firm had revenue of $89.63 million during the quarter, compared to the consensus estimate of $82.30 million. Quantum has set its Q3 2027 guidance at 0.100-0.300 EPS.

Key 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 Upgrades and Downgrades

Several research analysts have weighed in on QMCO shares. Cantor Fitzgerald lifted their target price on Quantum from $29.00 to $32.00 and gave the company an “overweight” rating in a research note on Tuesday. Lake Street Capital set a $29.00 price target on Quantum and gave the stock a “buy” rating in a research note on Monday, September 14th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Quantum in a report on Monday, September 21st. Wall Street Zen raised Quantum from a “hold” rating to a “buy” rating in a report on Saturday, August 15th. Finally, Northland Securities upgraded shares of Quantum from a “market perform” rating to an “outperform” rating and set a $24.00 price objective on the stock in a research report on Tuesday, August 11th. Five investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $28.33.

Institutional Investors Weigh In On Quantum

A number of hedge funds have recently added to or reduced their stakes in the company. State Street Corp boosted its holdings in Quantum by 4.3% in the 2nd quarter. State Street Corp now owns 75,914 shares of the company’s stock valued at $835,000 after purchasing an additional 3,100 shares in the last quarter. Squarepoint Ops LLC purchased a new position in shares of Quantum during the 2nd quarter worth approximately $372,000. Susquehanna Fundamental Investments LLC acquired a new stake in shares of Quantum in the 2nd quarter valued at approximately $381,000. Alyeska Investment Group L.P. acquired a new stake in shares of Quantum in the 2nd quarter valued at approximately $29,193,000. Finally, Bank of America Corp DE lifted its holdings in shares of Quantum by 730.5% in the 2nd quarter. Bank of America Corp DE now owns 170,130 shares of the company’s stock valued at $1,871,000 after buying an additional 149,645 shares during the period. Institutional investors and hedge funds own 63.66% of the company’s stock.

Quantum Price Performance

The stock has a market capitalization of $642.38 million, a PE ratio of -1.50 and a beta of 3.23. The stock has a 50 day moving average of $23.79 and a two-hundred day moving average of $13.39.

About Quantum

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.