D-Wave Quantum Inc. (NASDAQ:QBTS) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus: Thirteen of 16 analysts rate D-Wave Quantum a buy, with an average 12-month price target of $36.27 versus the reported share price of $16.58.
• Quarterly results missed expectations: D-Wave reported an adjusted loss of $0.10 per share against a $0.08 consensus loss, while revenue of $3.08 million fell short of the $4.03 million estimate. Analysts expect a full-year loss of $0.46 per share.
• Insiders sold shares while institutions increased holdings: Company insiders sold 262,631 shares worth $6.66 million in the latest quarter, while several institutional investors raised their positions; institutional ownership stands at 42.47%.

Shares of D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report) have received an average recommendation of "Moderate Buy" from the sixteen ratings firms that are presently covering the stock, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation, two have given a hold recommendation and thirteen have issued a buy recommendation on the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $36.2667.

QBTS has been the subject of a number of research reports. Needham & Company LLC restated a "buy" rating and set a $40.00 target price on shares of D-Wave Quantum in a report on Tuesday, June 2nd. Stifel Nicolaus set a $35.00 price target on D-Wave Quantum in a report on Tuesday, June 2nd. Benchmark began coverage on D-Wave Quantum in a research note on Monday, July 27th. They set a "buy" rating and a $30.00 price objective for the company. Rosenblatt Securities reissued a "buy" rating and set a $43.00 price objective on shares of D-Wave Quantum in a research note on Friday, August 7th. Finally, Wedbush initiated coverage on D-Wave Quantum in a report on Monday, August 3rd. They issued an "outperform" rating and a $40.00 target price on the stock.

D-Wave Quantum Price Performance

Shares of NASDAQ QBTS opened at $16.58 on Tuesday. D-Wave Quantum has a twelve month low of $12.75 and a twelve month high of $46.75. The company has a current ratio of 20.55, a quick ratio of 20.42 and a debt-to-equity ratio of 0.03. The company has a market capitalization of $6.13 billion, a price-to-earnings ratio of -23.35 and a beta of 2.15. The firm has a 50-day moving average of $19.17 and a two-hundred day moving average of $20.04.

D-Wave Quantum (NASDAQ:QBTS - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.10) earnings per share for the quarter, missing the consensus estimate of ($0.08) by ($0.02). D-Wave Quantum had a negative net margin of 2,001.59% and a negative return on equity of 26.67%. The business had revenue of $3.08 million for the quarter, compared to the consensus estimate of $4.03 million. During the same quarter last year, the business posted ($0.08) EPS. The business's revenue for the quarter was down 0.6 on a year-over-year basis. As a group, analysts expect that D-Wave Quantum will post -0.46 earnings per share for the current fiscal year.

Insider Activity at D-Wave Quantum

In related news, Director Rohit Ghai sold 13,518 shares of D-Wave Quantum stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $26.41, for a total value of $357,010.38. Following the transaction, the director owned 23,617 shares of the company's stock, valued at approximately $623,724.97. This trade represents a 36.40% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John Markovich sold 200,000 shares of D-Wave Quantum stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $25.71, for a total value of $5,142,000.00. Following the completion of the transaction, the chief financial officer directly owned 1,142,820 shares in the company, valued at $29,381,902.20. This represents a 14.89% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 262,631 shares of company stock worth $6,656,539 in the last quarter. 1.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Baird Financial Group Inc. lifted its position in shares of D-Wave Quantum by 12.0% in the 1st quarter. Baird Financial Group Inc. now owns 12,135 shares of the company's stock valued at $92,000 after acquiring an additional 1,300 shares in the last quarter. Royal Bank of Canada grew its position in D-Wave Quantum by 59.8% during the 1st quarter. Royal Bank of Canada now owns 162,088 shares of the company's stock worth $1,231,000 after purchasing an additional 60,668 shares in the last quarter. AQR Capital Management LLC raised its stake in D-Wave Quantum by 201.0% during the 1st quarter. AQR Capital Management LLC now owns 200,765 shares of the company's stock valued at $1,526,000 after purchasing an additional 134,066 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in D-Wave Quantum by 93.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,572 shares of the company's stock valued at $825,000 after purchasing an additional 52,437 shares during the period. Finally, NewEdge Advisors LLC lifted its holdings in shares of D-Wave Quantum by 125.7% in the first quarter. NewEdge Advisors LLC now owns 43,786 shares of the company's stock valued at $333,000 after purchasing an additional 24,382 shares in the last quarter. 42.47% of the stock is owned by hedge funds and other institutional investors.

About D-Wave Quantum

D-Wave Quantum Inc NYSE: QBTS develops and provides quantum computing systems, software and services focused on quantum annealing technology. Headquartered in Burnaby, British Columbia, D-Wave designs specialized processors that leverage quantum mechanics to solve complex optimization and sampling problems. Since its founding in 1999 by physicists including Geordie Rose, the company has pursued the development of commercially viable quantum hardware and accompanying software tools.

The company’s product portfolio centers on its quantum annealers, which are complemented by hybrid solvers that integrate classical and quantum computing resources.

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