D-Wave Quantum (NYSE:QBTS) Sees Unusually-High Trading Volume - Time to Buy?

Key Points

• QBTS shares surged on heavy trading volume, with about 30.7 million shares changing hands and the stock rising to $29.15 from a prior close of $25.74.
• The biggest catalyst is government support for quantum computing: D-Wave has a letter of intent with the U.S. Department of Commerce for proposed CHIPS Act funding, and reports suggest it could receive up to $100 million as part of a broader sector push.
• Despite the excitement, the company still showed mixed fundamentals in its latest earnings, including a wider revenue decline and ongoing losses, while insiders recently sold shares even as analysts maintain a Moderate Buy consensus.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) shares saw unusually-strong trading volume on Friday . Approximately 30,654,341 shares changed hands during mid-day trading, an increase of 1% from the previous session's volume of 30,223,307 shares.The stock last traded at $29.1530 and had previously closed at $25.74.

D-Wave Quantum News Summary

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

• Positive Sentiment: D-Wave is among the quantum companies benefiting from a reported Trump administration plan to provide $2 billion in funding across the sector, including $100 million for D-Wave, which has lifted optimism around future commercialization and scale. Article Title
• Positive Sentiment: The company signed a letter of intent with the U.S. Department of Commerce for proposed CHIPS Act funding, reinforcing expectations that D-Wave could receive meaningful government support to accelerate development. Article Title
• Positive Sentiment: Sector-wide momentum has spilled into QBTS as investors pile into quantum computing stocks on reports of federal equity stakes and strategic support for the industry. Article Title
• Neutral Sentiment: Heavy call-option buying suggests strong speculative interest in QBTS, but it does not by itself change the company’s fundamentals.
• Negative Sentiment: VP Sophie Ames sold shares under a pre-arranged 10b5-1 plan, which is a mild sentiment headwind even though the transaction appears routine. Article Title

Analyst Ratings Changes

A number of analysts have recently issued reports on QBTS shares. Weiss Ratings downgraded shares of D-Wave Quantum from a "sell (d-)" rating to a "sell (e+)" rating in a report on Wednesday, April 29th. Mizuho cut their price target on shares of D-Wave Quantum from $31.00 to $29.00 and set an "outperform" rating for the company in a report on Wednesday, May 13th. Zacks Research upgraded shares of D-Wave Quantum from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 28th. Roth Mkm cut their price target on shares of D-Wave Quantum from $40.00 to $30.00 and set a "buy" rating for the company in a report on Friday, February 27th. Finally, TD Cowen started coverage on shares of D-Wave Quantum in a report on Thursday, February 12th. They set a "buy" rating for the company. Fourteen investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, D-Wave Quantum currently has an average rating of "Moderate Buy" and a consensus price target of $34.67.

D-Wave Quantum Price Performance

The stock's fifty day moving average price is $18.20 and its 200-day moving average price is $22.16. The firm has a market cap of $11.37 billion, a price-to-earnings ratio of -27.21 and a beta of 1.95. The company has a current ratio of 21.41, a quick ratio of 21.31 and a debt-to-equity ratio of 0.03.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.08) by $0.03. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The business had revenue of $2.86 million during the quarter, compared to the consensus estimate of $4.19 million. During the same quarter last year, the firm earned ($0.02) EPS. The business's revenue was down 80.9% compared to the same quarter last year. As a group, equities research analysts forecast that D-Wave Quantum Inc. will post -0.44 earnings per share for the current fiscal year.

Insider Activity at D-Wave Quantum

In related news, VP Sophie C. Ames sold 23,025 shares of D-Wave Quantum stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $18.98, for a total value of $437,014.50. Following the completion of the sale, the vice president owned 596,803 shares in the company, valued at approximately $11,327,320.94. This trade represents a 3.71% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Rohit Ghai sold 10,000 shares of D-Wave Quantum stock in a transaction that occurred on 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 owned 27,778 shares of the company's stock, valued at $489,448.36. This trade represents a 26.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 54,801 shares of company stock worth $1,011,586 over the last quarter. Company insiders own 3.20% of the company's stock.

Institutional Trading of D-Wave Quantum

Several institutional investors have recently added to or reduced their stakes in QBTS. Root Financial Partners LLC increased its holdings in D-Wave Quantum by 388.0% in the 4th quarter. Root Financial Partners LLC now owns 976 shares of the company's stock valued at $26,000 after purchasing an additional 776 shares during the last quarter. Parallel Advisors LLC increased its holdings in D-Wave Quantum by 545.5% in the 1st quarter. Parallel Advisors LLC now owns 1,788 shares of the company's stock valued at $26,000 after purchasing an additional 1,511 shares during the last quarter. Kemnay Advisory Services Inc. acquired a new stake in D-Wave Quantum in the 4th quarter valued at approximately $28,000. PeakShares LLC acquired a new stake in D-Wave Quantum in the 1st quarter valued at approximately $29,000. Finally, EverSource Wealth Advisors LLC boosted its position in D-Wave Quantum by 267.7% in the 4th quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company's stock valued at $30,000 after buying an additional 838 shares during the period. Institutional investors and hedge funds own 42.47% of the company's stock.

D-Wave Quantum Company Profile

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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