D-Wave Quantum (NYSE:QBTS) Shares Down 1% - Time to Sell?

Key Points

• D-Wave Quantum shares fell 1% on Monday, trading between $23.52 and $24.44 on volume below its daily average.
• Despite the dip, Wall Street sentiment remains positive: 14 analysts rate the stock a Buy, with a consensus rating of “Moderate Buy” and an average price target of $36.80.
• The company’s latest earnings showed mixed results, with EPS beating estimates at -$0.05 but revenue missing expectations at $2.86 million and falling 80.9% year over year; insiders have also sold a significant amount of stock recently.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) traded down 1% on Monday . The stock traded as low as $23.52 and last traded at $24.44. 28,191,971 shares traded hands during mid-day trading, a decline of 13% from the average daily volume of 32,302,932 shares. The stock had previously closed at $24.69.

Wall Street Analyst Weigh In

QBTS has been the subject of several recent research reports. Rosenblatt Securities restated a "buy" rating and set a $43.00 price target on shares of D-Wave Quantum in a research report on Thursday, June 11th. Roth Mkm lifted their price objective on shares of D-Wave Quantum from $30.00 to $40.00 and gave the company a "buy" rating in a research report on Tuesday, June 2nd. Stifel Nicolaus set a $35.00 target price on shares of D-Wave Quantum in a research note on Tuesday, June 2nd. Jefferies Financial Group restated a "buy" rating on shares of D-Wave Quantum in a research report on Tuesday, May 12th. Finally, Weiss Ratings lowered shares of D-Wave Quantum from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Wednesday, April 29th. Fourteen analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $36.80.

D-Wave Quantum Stock Down 1.0%

The stock's 50-day moving average is $22.73 and its 200-day moving average is $22.34. The stock has a market cap of $9.04 billion, a P/E ratio of -21.63 and a beta of 2.05. 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 released its quarterly earnings results on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, topping analysts' consensus estimates of ($0.08) by $0.03. The company 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 2,957.23% and a negative return on equity of 44.06%. D-Wave Quantum's revenue was down 80.9% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.02) EPS. As a group, research analysts anticipate that D-Wave Quantum Inc. will post -0.43 earnings per share for the current fiscal year.

Insider Activity

In other D-Wave Quantum news, Director Rohit Ghai sold 13,518 shares of the company's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $26.41, for a total value of $357,010.38. Following the completion of the sale, the director directly owned 23,617 shares in the company, valued at $623,724.97. This represents a 36.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John D. Dilullo sold 7,850 shares of the business's stock in a transaction on Friday, June 5th. The stock was sold at an average price of $24.43, for a total value of $191,775.50. Following the completion of the sale, the director directly owned 21,310 shares in the company, valued at $520,603.30. This represents a 26.92% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,363,842 shares of company stock valued at $35,802,656 over the last 90 days. Corporate insiders own 1.30% of the company's stock.

Hedge Funds Weigh In On D-Wave Quantum

Large investors have recently made changes to their positions in the business. Vanguard Group Inc. grew its position in D-Wave Quantum by 41.2% in the third quarter. Vanguard Group Inc. now owns 38,454,869 shares of the company's stock worth $950,220,000 after buying an additional 11,218,255 shares during the last quarter. UBS Group AG increased its holdings in shares of D-Wave Quantum by 541.6% in the third quarter. UBS Group AG now owns 12,089,703 shares of the company's stock valued at $298,737,000 after buying an additional 10,205,427 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of D-Wave Quantum by 11.5% during the 4th quarter. Geode Capital Management LLC now owns 8,394,726 shares of the company's stock valued at $220,085,000 after acquiring an additional 866,405 shares during the last quarter. State Street Corp lifted its position in shares of D-Wave Quantum by 5.3% during the 4th quarter. State Street Corp now owns 7,707,085 shares of the company's stock valued at $201,540,000 after acquiring an additional 385,809 shares during the last quarter. Finally, Marex Group plc boosted its stake in shares of D-Wave Quantum by 74.9% during the 4th quarter. Marex Group plc now owns 4,592,656 shares of the company's stock worth $120,098,000 after acquiring an additional 1,966,500 shares in the last quarter. Institutional investors 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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