D-Wave Quantum (NYSE:QBTS) Shares Down 2.4% - Here's Why

Key Points

• Shares of D-Wave Quantum fell 2.4% to $16.09 on Thursday, trading as low as $15.36 on about 21.5 million shares—roughly 29% below average session volume.
• D-Wave reported quarterly EPS of -$0.09 (missing the -$0.05 consensus) and revenue of $2.75M versus $3.74M expected, while registering a deeply negative net margin (~1,444%) despite 21.7% year‑over‑year revenue growth.
• Analysts are mostly positive (14 Buys, 2 Sells) with a consensus price target of $36.50 and a "Moderate Buy" rating, but insiders sold about 966,610 shares last quarter (~$28.7M), including a large CEO sale that reduced his stake by ~23%.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s stock price traded down 2.4% on Thursday . The stock traded as low as $15.36 and last traded at $16.0920. 21,474,643 shares were traded during trading, a decline of 29% from the average session volume of 30,395,742 shares. The stock had previously closed at $16.49.

Wall Street Analyst Weigh In

QBTS has been the topic of a number of analyst reports. Jefferies Financial Group assumed coverage on D-Wave Quantum in a report on Tuesday, December 16th. They issued a "buy" rating and a $45.00 price objective on the stock. Wall Street Zen cut shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a research report on Saturday, February 7th. Rosenblatt Securities reissued a "buy" rating and set a $43.00 price target on shares of D-Wave Quantum in a research report on Wednesday, January 28th. TD Cowen began coverage on shares of D-Wave Quantum in a report on Thursday, February 12th. They issued a "buy" rating for the company. Finally, Benchmark reaffirmed a "buy" rating and set a $35.00 target price on shares of D-Wave Quantum in a report on Friday, January 23rd. Fourteen investment analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $36.50.

D-Wave Quantum Price Performance

The stock has a 50-day simple moving average of $21.65 and a 200 day simple moving average of $25.14. The company has a debt-to-equity ratio of 0.04, a quick ratio of 42.25 and a current ratio of 42.38. The stock has a market capitalization of $5.95 billion, a P/E ratio of -14.63 and a beta of 1.61.

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

Insiders Place Their Bets

In other D-Wave Quantum news, CEO Alan E. Baratz sold 793,712 shares of the company's stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $30.13, for a total transaction of $23,914,542.56. Following the completion of the sale, the chief executive officer directly owned 2,633,163 shares in the company, valued at $79,337,201.19. This represents a 23.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO John M. Markovich sold 100,000 shares of the business'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 sale, the chief financial officer owned 1,471,312 shares in the company, valued at $44,183,499.36. This represents a 6.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 966,610 shares of company stock valued at $28,666,597. 3.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in QBTS. World Investment Advisors boosted its holdings in shares of D-Wave Quantum by 195.7% in the fourth quarter. World Investment Advisors now owns 41,691 shares of the company's stock worth $1,090,000 after acquiring an additional 27,592 shares during the period. Corient Private Wealth LLC raised its stake in shares of D-Wave Quantum by 25.8% during the fourth quarter. Corient Private Wealth LLC now owns 30,797 shares of the company's stock valued at $805,000 after acquiring an additional 6,319 shares during the last quarter. Tulsa Wealth Advisors INC purchased a new stake in shares of D-Wave Quantum in the 4th quarter worth about $248,000. Caitong International Asset Management Co. Ltd boosted its position in shares of D-Wave Quantum by 16.3% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 111,923 shares of the company's stock valued at $2,927,000 after purchasing an additional 15,675 shares in the last quarter. Finally, Tempo Wealth LLC purchased a new stake in shares of D-Wave Quantum in the fourth quarter worth $774,000. 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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