D-Wave Quantum (NYSE:QBTS) Shares Down 1.1% - Here's Why

Key Points

• Shares down 1.1% — QBTS traded as low as $18.23 and last at $18.62 on Friday with volume of 27.14M shares, about 16% below its average session volume.
• Analyst sentiment is generally positive: 14 Buys, 1 Hold and 1 Sell with a consensus rating of “Moderate Buy” and an average price target of $36.50 (individual targets range up to $44).
• Earnings and insider activity: D‑Wave missed estimates with Q results of ($0.09) EPS vs. ($0.05) expected and revenue $2.75M vs. $3.74M expected (revenue up 21.7% YoY), and insiders have sold roughly 959,466 shares (~$28.7M) in the last 90 days.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) shares traded down 1.1% during trading on Friday . The stock traded as low as $18.23 and last traded at $18.62. 27,140,588 shares traded hands during mid-day trading, a decline of 16% from the average session volume of 32,141,283 shares. The stock had previously closed at $18.83.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on QBTS. Cantor Fitzgerald upped their price objective on D-Wave Quantum from $20.00 to $40.00 and gave the stock an "overweight" rating in a report on Friday, November 7th. Benchmark reaffirmed a "buy" rating and set a $35.00 price target on shares of D-Wave Quantum in a research note on Friday, January 23rd. Mizuho cut their price target on shares of D-Wave Quantum from $46.00 to $40.00 and set an "outperform" rating for the company in a report on Friday, February 27th. Evercore started coverage on shares of D-Wave Quantum in a research note on Wednesday, December 3rd. They issued an "outperform" rating and a $44.00 price objective for the company. Finally, Zacks Research upgraded shares of D-Wave Quantum from a "strong sell" rating to a "hold" rating in a research report on Thursday, November 6th. Fourteen research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $36.50.

D-Wave Quantum Trading Down 1.1%

The firm has a market cap of $6.89 billion, a PE ratio of -16.93 and a beta of 1.61. The company has a debt-to-equity ratio of 0.04, a current ratio of 42.38 and a quick ratio of 54.49. The business has a 50-day moving average price of $23.41 and a two-hundred day moving average price of $24.92.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported ($0.09) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.04). D-Wave Quantum had a negative return on equity of 58.58% and a negative net margin of 1,444.10%.The business had revenue of $2.75 million during the quarter, compared to analysts' expectations of $3.74 million. The company's revenue was up 21.7% on a year-over-year basis. Analysts forecast that D-Wave Quantum Inc. will post -0.41 EPS for the current year.

Insider Transactions at D-Wave Quantum

In other D-Wave Quantum news, Director Rohit Ghai sold 10,000 shares of the stock in a transaction on Monday, December 15th. The stock was sold at an average price of $24.28, for a total transaction of $242,800.00. Following the sale, the director owned 37,778 shares in the company, valued at approximately $917,249.84. This represents a 20.93% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO John M. Markovich sold 100,000 shares of the firm's stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $30.03, for a total value of $3,003,000.00. Following the transaction, the chief financial officer directly owned 1,471,312 shares of the company's stock, valued at $44,183,499.36. The trade was a 6.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 959,466 shares of company stock valued at $28,676,586 in the last ninety days. Corporate insiders own 3.20% of the company's stock.

Institutional Trading of D-Wave Quantum

A number of large investors have recently made changes to their positions in the stock. Root Financial Partners LLC raised its stake 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. Kemnay Advisory Services Inc. purchased a new stake in shares of D-Wave Quantum during the fourth quarter worth about $28,000. EverSource Wealth Advisors LLC grew its holdings in shares of D-Wave Quantum by 267.7% during the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company's stock worth $30,000 after buying an additional 838 shares in the last quarter. Mcguire Capital Advisors Inc. acquired a new position in shares of D-Wave Quantum in the fourth quarter valued at approximately $31,000. Finally, Ancora Advisors LLC purchased a new position in shares of D-Wave Quantum during the third quarter valued at approximately $30,000. 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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