D-Wave Quantum (NYSE:QBTS) CEO Sells $17,967,693.51 in Stock

Key Points

• D-Wave Quantum CEO Alan Baratz sold 687,627 shares on June 8 for about $17.97 million, reducing his direct stake by 17.25%. The sale was disclosed in an SEC filing.
• The stock traded lower after the disclosure, falling about 0.7% to $23.36, though it remains well above its 50-day and 200-day moving averages.
• Analysts remain broadly positive on QBTS, with several firms reiterating Buy/Overweight ratings and a consensus price target around $36.40, even as the company recently reported weaker-than-expected revenue.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) CEO Alan Baratz sold 687,627 shares of the company's stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $26.13, for a total transaction of $17,967,693.51. Following the transaction, the chief executive officer directly owned 3,299,771 shares of the company's stock, valued at $86,223,016.23. This trade represents a 17.25% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website.

D-Wave Quantum Trading Down 0.7%

QBTS traded down $0.17 during trading on Wednesday, hitting $23.36. 20,703,271 shares of the company's stock were exchanged, compared to its average volume of 32,410,734. The company has a current ratio of 21.41, a quick ratio of 21.31 and a debt-to-equity ratio of 0.03. D-Wave Quantum Inc. has a 1 year low of $12.75 and a 1 year high of $46.75. The stock has a 50 day moving average price of $21.12 and a 200 day moving average price of $22.22. The firm has a market cap of $8.64 billion, a P/E ratio of -20.67 and a beta of 2.05.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last released its quarterly earnings data on Tuesday, May 12th. The company reported ($0.05) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.08) by $0.03. The company had revenue of $2.86 million during the quarter, compared to the consensus estimate of $4.19 million. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. D-Wave Quantum's revenue for the quarter was down 80.9% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.02) earnings per share. As a group, analysts expect that D-Wave Quantum Inc. will post -0.43 EPS for the current fiscal year.

Institutional Trading of D-Wave Quantum

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. grew its position in D-Wave Quantum by 41.2% during the third quarter. Vanguard Group Inc. now owns 38,454,869 shares of the company's stock valued at $950,220,000 after purchasing an additional 11,218,255 shares in the last quarter. UBS Group AG grew its position in D-Wave Quantum by 541.6% during the third quarter. UBS Group AG now owns 12,089,703 shares of the company's stock valued at $298,737,000 after purchasing an additional 10,205,427 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its position in D-Wave Quantum by 136,842.4% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,194,866 shares of the company's stock valued at $83,546,000 after purchasing an additional 3,192,533 shares in the last quarter. Clear Street Group Inc. purchased a new position in D-Wave Quantum during the third quarter valued at approximately $75,344,000. Finally, Goldman Sachs Group Inc. grew its position in D-Wave Quantum by 311.6% during the fourth quarter. Goldman Sachs Group Inc. now owns 3,548,013 shares of the company's stock valued at $92,781,000 after purchasing an additional 2,685,980 shares in the last quarter. 42.47% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $40.00 price objective on shares of D-Wave Quantum in a report on Wednesday, May 13th. B. Riley Financial raised their price target on D-Wave Quantum from $36.00 to $40.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Roth Mkm upped their price objective on shares of D-Wave Quantum from $30.00 to $40.00 and gave the stock a "buy" rating in a report on Tuesday, June 2nd. Rosenblatt Securities reaffirmed a "buy" rating and issued a $43.00 price objective on shares of D-Wave Quantum in a report on Tuesday, June 2nd. Finally, Mizuho dropped their price target on shares of D-Wave Quantum from $31.00 to $29.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 13th. Fourteen research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $36.40.

Key D-Wave Quantum News

Here are the key news stories impacting D-Wave Quantum this week:

• Positive Sentiment: B. Riley remained bullish on D-Wave Quantum and raised its price target to $40 from $36, reinforcing the idea that Wall Street still sees meaningful upside. B. Riley is Bullish on D-Wave Quantum Inc. (QBTS)
• Positive Sentiment: Other analysts also remain constructive, with Rosenblatt reiterating a Buy rating and Canaccord, TD Cowen, and others continuing to back the stock, suggesting the longer-term quantum computing story is still intact. QBTS analyst and stock page
• Neutral Sentiment: One article highlighted that D-Wave has rewarded patient investors over time, but it also warned that recent buyers may be facing a difficult valuation reality after the stock’s strong rally. D-Wave Rewarded Patient Investors With 135% Gains but Recent Buyers Face a Brutal Reality
• Neutral Sentiment: Another piece said the stock’s decline reflected a rotation out of speculative growth names, rather than a company-specific negative development, which implies the move may be tied to market sentiment more than fundamentals. D-Wave Quantum Plummeted Today -- Is the Stock a Buy Right Now?
• Negative Sentiment: Insider selling added some pressure: Director John Dilullo sold 7,850 shares in a pre-arranged 10b5-1 plan, which can still weigh on sentiment even when routine. John Dilullo Sells 7,850 Shares of D-Wave Quantum NYSE: QBTS Stock
• Negative Sentiment: Some commentary also argued that legacy tech players like Intel and IBM could be better positioned than pure-play quantum firms such as D-Wave, which may be tempering investor enthusiasm. The Case for Intel Over Pure-Play Quantum Firms (QBTS)

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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