D-Wave Quantum (NYSE:QBTS) Given Buy Rating at Needham & Company LLC

Key Points

• Needham & Company reaffirmed its Buy rating on D-Wave Quantum and kept a $40 price target, implying about 78.7% upside from the current share price.
• D-Wave’s latest earnings showed a mixed picture: it posted an EPS loss of $0.05, better than expected, but revenue of $2.86 million missed estimates and fell 80.9% year over year.
• The stock has attracted significant analyst interest overall, with 14 Buy ratings and a Moderate Buy consensus, while recent reporting also highlighted record bookings growth of nearly 2,000% and continued institutional buying.

D-Wave Quantum (NYSE:QBTS - Get Free Report)'s stock had its "buy" rating reaffirmed by Needham & Company LLC in a report issued on Wednesday,Benzinga reports. They currently have a $40.00 price target on the stock. Needham & Company LLC's price objective points to a potential upside of 78.71% from the company's current price.

QBTS has been the topic of a number of other research reports. TD Cowen initiated coverage on shares of D-Wave Quantum in a report on Thursday, February 12th. They set a "buy" rating on the stock. Zacks Research raised shares of D-Wave Quantum from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 28th. Jefferies Financial Group reissued a "buy" rating on shares of D-Wave Quantum in a report on Tuesday. Wall Street Zen downgraded shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a report on Saturday, February 7th. Finally, Benchmark reissued a "buy" rating and set a $35.00 price objective on shares of D-Wave Quantum in a report on Friday, January 23rd. Fourteen investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, D-Wave Quantum has a consensus rating of "Moderate Buy" and an average price target of $34.80.

D-Wave Quantum Stock Down 6.9%

Shares of NYSE:QBTS opened at $22.38 on Wednesday. The company has a market cap of $8.28 billion, a price-to-earnings ratio of -20.35 and a beta of 1.95. The firm's 50-day simple moving average is $17.90 and its 200-day simple moving average is $22.80. The company has a quick ratio of 42.25, a current ratio of 42.38 and a debt-to-equity ratio of 0.04. D-Wave Quantum has a fifty-two week low of $10.36 and a fifty-two week high of $46.75.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last issued its earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share for the quarter, beating the consensus estimate of ($0.08) by $0.03. The business had revenue of $2.86 million for the quarter, compared to the consensus estimate of $4.19 million. D-Wave Quantum had a negative net margin of 1,444.10% and a negative return on equity of 58.58%. The business's quarterly revenue was down 80.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.02) earnings per share. As a group, equities research analysts predict that D-Wave Quantum will post -0.44 earnings per share for the current year.

Insider Buying and Selling at D-Wave Quantum

In other D-Wave Quantum news, VP Sophie C. Ames sold 3,070 shares of the company's stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $21.35, for a total value of $65,544.50. Following the sale, the vice president owned 643,678 shares of the company's stock, valued at $13,742,525.30. This represents a 0.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Rohit Ghai sold 10,000 shares of the company's stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $17.62, for a total transaction of $176,200.00. Following the completion of the sale, the director directly owned 27,778 shares in the company, valued at $489,448.36. This trade represents a 26.47% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 31,776 shares of company stock worth $574,571 over the last ninety days. 3.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On D-Wave Quantum

A number of institutional investors have recently modified their holdings of QBTS. Baird Financial Group Inc. raised its position in shares of D-Wave Quantum by 12.0% in the first quarter. Baird Financial Group Inc. now owns 12,135 shares of the company's stock valued at $92,000 after buying an additional 1,300 shares during the last quarter. Royal Bank of Canada raised its position in shares of D-Wave Quantum by 59.8% in the first quarter. Royal Bank of Canada now owns 162,088 shares of the company's stock valued at $1,231,000 after buying an additional 60,668 shares during the last quarter. AQR Capital Management LLC raised its position in shares of D-Wave Quantum by 201.0% in the first quarter. AQR Capital Management LLC now owns 200,765 shares of the company's stock valued at $1,526,000 after buying an additional 134,066 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of D-Wave Quantum by 93.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,572 shares of the company's stock valued at $825,000 after buying an additional 52,437 shares during the last quarter. Finally, NewEdge Advisors LLC raised its position 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 buying an additional 24,382 shares during the last quarter. Institutional investors and hedge funds own 42.47% of the company's stock.

More D-Wave Quantum News

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

• Positive Sentiment: D-Wave reported Q1 EPS of ($0.05), beating estimates for a loss of ($0.08), which suggests losses are narrowing faster than expected. The company also highlighted record bookings growth of nearly 2,000%, a sign of strong demand and improving commercial momentum. Article Title
• Positive Sentiment: Analysts and market coverage noted that the company’s booking growth, government deals, and Advantage2 momentum could support the long-term quantum computing story, even if near-term fundamentals remain uneven. Article Title
• Neutral Sentiment: Investors are also focused on management’s earnings call and presentation for clues about commercialization timing, revenue ramp, and whether recent booking strength can translate into sustained sales growth. Article Title
• Negative Sentiment: Revenue came in at $2.86 million, well below the $4.19 million estimate and down 80.9% year over year, reinforcing concerns about lumpy sales and the company’s still-challenged path to profitability. Article Title
• Negative Sentiment: Several market write-ups pointed out that despite the EPS beat, the stock was under pressure because the revenue miss overshadowed the beat and the company remains unprofitable with wide negative margins. Article Title

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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