D-Wave Quantum (NYSE:QBTS) Downgraded to "Sell" Rating by Wall Street Zen

Key Points

• D-Wave Quantum has been downgraded from a "hold" rating to a "sell" rating by Wall Street Zen, indicating a negative outlook from analysts.
• Despite the downgrade, 12 analysts maintain a buy rating for the stock, with an average target price of $17.92, suggesting some analysts still see potential for upside.
• The company reported a 40.9% year-over-year revenue increase despite missing earnings estimates, showing growth in sales but challenges in profitability.

D-Wave Quantum (NYSE:QBTS - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Saturday.

Several other research analysts also recently weighed in on the company. Williams Trading set a $20.00 target price on D-Wave Quantum in a research note on Wednesday, June 18th. Piper Sandler boosted their target price on D-Wave Quantum from $13.00 to $22.00 and gave the stock an "overweight" rating in a research note on Friday. Benchmark restated a "buy" rating and set a $20.00 target price on shares of D-Wave Quantum in a research note on Monday, August 4th. Needham & Company LLC restated a "buy" rating on shares of D-Wave Quantum in a research note on Monday, August 4th. Finally, Rosenblatt Securities began coverage on D-Wave Quantum in a research note on Tuesday, July 29th. They issued a "buy" rating and a $30.00 target price for the company. One investment analyst has rated the stock with a sell rating and twelve have given a buy rating to the stock. According to MarketBeat.com, D-Wave Quantum currently has an average rating of "Moderate Buy" and an average price target of $17.92.

D-Wave Quantum Stock Performance

Shares of NYSE:QBTS traded down $0.33 on Friday, reaching $16.84. The company had a trading volume of 44,485,820 shares, compared to its average volume of 47,287,608. D-Wave Quantum has a 52-week low of $0.78 and a 52-week high of $20.56. The firm's 50 day simple moving average is $16.71 and its 200-day simple moving average is $11.11. The company has a current ratio of 20.73, a quick ratio of 20.61 and a debt-to-equity ratio of 0.15.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported ($0.08) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.03). D-Wave Quantum had a negative return on equity of 333.68% and a negative net margin of 1,263.92%. The business had revenue of $3.10 million for the quarter, compared to analysts' expectations of $2.55 million. The business's revenue for the quarter was up 40.9% on a year-over-year basis. As a group, analysts expect that D-Wave Quantum will post -0.41 EPS for the current year.

Insider Buying and Selling at D-Wave Quantum

In other D-Wave Quantum news, CEO Alan E. Baratz sold 845,813 shares of D-Wave Quantum stock in a transaction dated Wednesday, May 21st. The stock was sold at an average price of $17.00, for a total transaction of $14,378,821.00. Following the completion of the transaction, the chief executive officer owned 2,866,412 shares in the company, valued at approximately $48,729,004. This trade represents a 22.78% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Roger Biscay sold 106,626 shares of D-Wave Quantum stock in a transaction dated Thursday, June 12th. The shares were sold at an average price of $16.85, for a total value of $1,796,648.10. Following the transaction, the director owned 14,260 shares of the company's stock, valued at $240,281. The trade was a 88.20% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,636,796 shares of company stock worth $27,872,091. Insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On D-Wave Quantum

Institutional investors have recently modified their holdings of the stock. Reyes Financial Architecture Inc. purchased a new position in shares of D-Wave Quantum during the 2nd quarter valued at about $29,000. Atlantic Union Bankshares Corp purchased a new position in shares of D-Wave Quantum in the 2nd quarter valued at about $29,000. Parallel Advisors LLC increased its stake in shares of D-Wave Quantum by 227.3% in the 2nd quarter. Parallel Advisors LLC now owns 2,206 shares of the company's stock valued at $32,000 after purchasing an additional 1,532 shares in the last quarter. Gables Capital Management Inc. purchased a new position in shares of D-Wave Quantum in the 2nd quarter valued at about $37,000. Finally, Huntington National Bank purchased a new position in shares of D-Wave Quantum in the 2nd quarter valued at about $41,000. Hedge funds and other institutional investors own 42.47% of the company's stock.

About D-Wave Quantum

D-Wave Quantum Inc develops and delivers quantum computing systems, software, and services worldwide. The company offers Advantage, a fifth-generation quantum computer; Ocean, a suite of open-source python tools; and Leap, a cloud-based service that provides real-time access to a live quantum computer, as well as access to Advantage, hybrid solvers, the Ocean software development kit, live code, demos, learning resources, and a vibrant developer community.