D-Wave Quantum (NYSE:QBTS) Hits New 52-Week High - Time to Buy?

Key Points

• D-Wave Quantum Inc. (NYSE:QBTS) recently hit a new 52-week high of $27.99 during trading, closing at $27.50 with significant trading volume of over 66 million shares.
• Analysts overwhelmingly recommend a "buy" rating for D-Wave, with an average target price of $20.27, despite the company's earnings report missing expectations and a negative net margin.
• Institutional investors have increased stakes in D-Wave Quantum, with notable increases reported from Deutsche Bank and Nuveen Asset Management, indicating growing institutional interest in the company.

Shares of D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $27.99 and last traded at $27.50, with a volume of 66142381 shares trading hands. The stock had previously closed at $25.67.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. Stifel Nicolaus assumed coverage on D-Wave Quantum in a research note on Tuesday, August 5th. They issued a "buy" rating and a $26.00 target price on the stock. Benchmark restated a "buy" rating and set a $20.00 price objective on shares of D-Wave Quantum in a research note on Monday, August 4th. Rosenblatt Securities began coverage on shares of D-Wave Quantum in a research note on Tuesday, July 29th. They set a "buy" rating and a $30.00 price objective on the stock. Roth Capital restated a "buy" rating on shares of D-Wave Quantum in a research note on Friday, June 13th. Finally, Canaccord Genuity Group began coverage on shares of D-Wave Quantum in a research note on Wednesday, July 23rd. They set a "buy" rating and a $20.00 price objective on the stock. Eleven equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus target price of $20.27.

D-Wave Quantum Trading Up 7.1%

The business has a fifty day moving average of $17.82 and a 200-day moving average of $13.76. The stock has a market capitalization of $9.41 billion, a price-to-earnings ratio of -26.19 and a beta of 1.39. The company has a debt-to-equity ratio of 0.05, a current ratio of 42.99 and a quick ratio of 42.86.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported ($0.08) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.03). The firm had revenue of $3.10 million for the quarter, compared to analyst estimates of $2.55 million. D-Wave Quantum had a negative return on equity of 118.87% and a negative net margin of 1,263.92%.The firm's quarterly revenue was up 40.9% compared to the same quarter last year. On average, equities analysts anticipate that D-Wave Quantum Inc. will post -0.41 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director John D. Dilullo sold 8,000 shares of D-Wave Quantum stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $17.93, for a total transaction of $143,440.00. Following the transaction, the director directly owned 36,295 shares of the company's stock, valued at $650,769.35. The trade was a 18.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO John M. Markovich sold 100,000 shares of D-Wave Quantum stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $18.00, for a total value of $1,800,000.00. Following the transaction, the chief financial officer directly owned 1,558,753 shares in the company, valued at approximately $28,057,554. The trade was a 6.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 168,000 shares of company stock valued at $2,937,740 over the last three months. Company insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On D-Wave Quantum

A number of institutional investors have recently bought and sold shares of QBTS. Deutsche Bank AG increased its stake in D-Wave Quantum by 35.0% in the 4th quarter. Deutsche Bank AG now owns 73,906 shares of the company's stock worth $621,000 after purchasing an additional 19,157 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in D-Wave Quantum by 14.7% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 56,135 shares of the company's stock worth $472,000 after purchasing an additional 7,185 shares in the last quarter. Nuveen Asset Management LLC increased its stake in D-Wave Quantum by 9.8% in the 4th quarter. Nuveen Asset Management LLC now owns 481,708 shares of the company's stock worth $4,046,000 after purchasing an additional 43,159 shares in the last quarter. ProShare Advisors LLC increased its stake in D-Wave Quantum by 68.3% in the 4th quarter. ProShare Advisors LLC now owns 27,851 shares of the company's stock worth $234,000 after purchasing an additional 11,301 shares in the last quarter. Finally, Tidal Investments LLC purchased a new position in D-Wave Quantum in the 4th quarter worth about $104,000. 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.

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