D-Wave Quantum (NYSE:QBTS) Downgraded to "Strong Sell" Rating by Zacks Research

Key Points

• D-Wave Quantum (NYSE: QBTS) has been downgraded by Zacks Research from a "hold" rating to a "strong sell" rating.
• Despite the downgrade, other firms like Roth Capital have maintained a "buy" rating and set a price target of $20.00.
• Insider transactions revealed significant sales, with the CFO selling 100,000 shares for $1.8 million, representing a 6.03% decrease in their position.

D-Wave Quantum (NYSE:QBTS - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other research firms also recently issued reports on QBTS. Roth Capital reiterated a "buy" rating on shares of D-Wave Quantum in a report on Friday, June 13th. Wall Street Zen lowered shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Piper Sandler boosted their price target on shares of D-Wave Quantum from $13.00 to $22.00 and gave the stock an "overweight" rating in a research report on Friday, August 8th. Williams Trading set a $20.00 price objective on D-Wave Quantum in a report on Wednesday, June 18th. Finally, Canaccord Genuity Group assumed coverage on D-Wave Quantum in a report on Wednesday, July 23rd. They set a "buy" rating and a $20.00 target price on the stock. Eleven equities research analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $20.27.

D-Wave Quantum Price Performance

QBTS stock opened at $35.80 on Monday. The stock has a 50-day moving average price of $19.88 and a two-hundred day moving average price of $15.20. D-Wave Quantum has a 1 year low of $0.87 and a 1 year high of $37.90. The stock has a market cap of $12.24 billion, a PE ratio of -34.09 and a beta of 1.49. The company has a current ratio of 42.99, a quick ratio of 42.86 and a debt-to-equity ratio of 0.05.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last posted its quarterly earnings data 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 118.87% and a negative net margin of 1,263.92%.The firm had revenue of $3.10 million for the quarter, compared to analyst estimates of $2.55 million. The firm's quarterly revenue was up 40.9% compared to the same quarter last year. Equities analysts forecast that D-Wave Quantum will post -0.41 EPS for the current fiscal year.

Insider Transactions at D-Wave Quantum

In other D-Wave Quantum news, CFO John M. Markovich sold 100,000 shares of the firm's stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $18.00, for a total transaction of $1,800,000.00. Following the completion of the sale, the chief financial officer owned 1,558,753 shares of the company's stock, valued at $28,057,554. This trade represents a 6.03% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Rohit Ghai sold 10,000 shares of the company's stock in a transaction on Monday, September 15th. The shares were sold at an average price of $17.93, for a total transaction of $179,300.00. Following the completion of the transaction, the director owned 47,778 shares in the company, valued at approximately $856,659.54. This represents a 17.31% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 168,000 shares of company stock worth $2,937,740. 3.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Marex Group plc acquired a new position in shares of D-Wave Quantum in the second quarter valued at approximately $80,070,000. Vanguard Group Inc. grew its holdings in D-Wave Quantum by 58.5% in the 1st quarter. Vanguard Group Inc. now owns 11,285,043 shares of the company's stock valued at $85,766,000 after buying an additional 4,166,721 shares in the last quarter. Arrowstreet Capital Limited Partnership bought a new position in D-Wave Quantum during the 2nd quarter worth $45,372,000. Penserra Capital Management LLC increased its position in D-Wave Quantum by 80.1% during the 1st quarter. Penserra Capital Management LLC now owns 5,068,199 shares of the company's stock worth $38,518,000 after buying an additional 2,253,741 shares during the period. Finally, UNICOM Systems Inc. lifted its holdings in shares of D-Wave Quantum by 91.9% during the first quarter. UNICOM Systems Inc. now owns 4,627,704 shares of the company's stock worth $35,171,000 after buying an additional 2,216,000 shares in the last quarter. Institutional investors and hedge funds 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.

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