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

Key Points

• D-Wave Quantum's stock reached a new 52-week high of $41.97, closing at $40.71, which represents a significant increase from its previous close of $33.02.
• Analysts have varied views on D-Wave, with Piper Sandler upgrading their price target to $22.00, while others like Weiss Ratings maintained a "sell" rating, reflecting a consensus average target price of $20.27.
• The company's quarterly earnings report showed a 40.9% year-over-year revenue increase, although it missed EPS estimates and reported a significant negative net margin.

Shares of D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) hit a new 52-week high during trading on Tuesday . The company traded as high as $41.97 and last traded at $40.71, with a volume of 88721168 shares trading hands. The stock had previously closed at $33.02.

Analyst Ratings Changes

A number of research analysts recently issued reports on QBTS shares. Piper Sandler boosted their price objective on shares of D-Wave Quantum from $13.00 to $22.00 and gave the company an "overweight" rating in a report on Friday, August 8th. Williams Trading set a $20.00 price target on shares of D-Wave Quantum in a research report on Wednesday, June 18th. Rosenblatt Securities assumed coverage on 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. B. Riley raised their price objective on D-Wave Quantum from $22.00 to $33.00 and gave the stock a "buy" rating in a research note on Monday, September 22nd. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of D-Wave Quantum in a report on Saturday, September 27th. Eleven analysts have rated the stock with a Buy rating and two have given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $20.27.

D-Wave Quantum Stock Up 23.3%

The company has a debt-to-equity ratio of 0.05, a current ratio of 42.99 and a quick ratio of 42.86. The company has a market capitalization of $13.92 billion, a price-to-earnings ratio of -38.77 and a beta of 1.49. The firm has a 50-day moving average price of $21.38 and a two-hundred day moving average price of $16.02.

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

Insider Activity at D-Wave Quantum

In related news, Director John D. Dilullo sold 8,000 shares of the firm's stock in a transaction on Monday, September 15th. The stock was sold at an average price of $17.93, for a total value of $143,440.00. Following the transaction, the director owned 36,295 shares in the company, valued at approximately $650,769.35. This trade represents a 18.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO John M. Markovich sold 50,000 shares of D-Wave Quantum stock in a transaction on Thursday, September 11th. The shares were sold at an average price of $16.30, for a total value of $815,000.00. Following the completion of the transaction, the chief financial officer owned 1,599,511 shares in the company, valued at approximately $26,072,029.30. The trade was a 3.03% decrease in their position. The disclosure for this sale can be found here. Insiders sold 168,000 shares of company stock worth $2,937,740 in the last ninety days. 3.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On D-Wave Quantum

Institutional investors have recently added to or reduced their stakes in the stock. Reyes Financial Architecture Inc. acquired a new position in D-Wave Quantum during the 2nd quarter worth approximately $29,000. Atlantic Union Bankshares Corp bought a new stake in shares of D-Wave Quantum during the second quarter worth $29,000. Parallel Advisors LLC grew its stake in shares of D-Wave Quantum by 227.3% during the second quarter. Parallel Advisors LLC now owns 2,206 shares of the company's stock worth $32,000 after buying an additional 1,532 shares during the last quarter. Gables Capital Management Inc. acquired a new stake in shares of D-Wave Quantum during the 2nd quarter valued at $37,000. Finally, Huntington National Bank acquired a new stake in shares of D-Wave Quantum during the 2nd quarter valued at $41,000. 42.47% of the stock is currently owned by institutional investors and hedge funds.

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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