D-Wave Quantum (NYSE:QBTS) Shares Down 3.1% - Time to Sell?

Key Points

• D-Wave Quantum's stock price fell by 3.1% to $16.65, with trading activity down 78% from its average session volume.
• Analysts have set a new price target of $20.00 for D-Wave Quantum, with ten research firms rating the stock as a "buy".
• Institutional investors have significantly increased their holdings, with Vanguard raising its stake by 58.5% in the first quarter alone.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price fell 3.1% during mid-day trading on Friday . The stock traded as low as $16.11 and last traded at $16.65. 15,466,362 shares traded hands during mid-day trading, a decline of 78% from the average session volume of 69,873,633 shares. The stock had previously closed at $17.19.

Analysts Set New Price Targets

A number of research firms have recently weighed in on QBTS. Williams Trading set a $20.00 price target on D-Wave Quantum in a research note on Wednesday, June 18th. Roth Capital reissued a "buy" rating on shares of D-Wave Quantum in a research note on Friday, June 13th. Benchmark reissued a "buy" rating and issued a $20.00 price objective (up from $14.00) on shares of D-Wave Quantum in a research note on Tuesday, June 17th. Needham & Company LLC raised their price objective on D-Wave Quantum from $8.50 to $13.00 and gave the company a "buy" rating in a research note on Friday, May 9th. Finally, Canaccord Genuity Group began coverage on D-Wave Quantum in a research note on Wednesday, July 23rd. They issued a "buy" rating and a $20.00 price objective on the stock. Ten research analysts have rated the stock with a buy rating, According to MarketBeat.com, the company currently has an average rating of "Buy" and an average target price of $16.70.

D-Wave Quantum Price Performance

The company has a market cap of $4.82 billion, a price-to-earnings ratio of -27.49 and a beta of 1.40. The company has a fifty day moving average price of $16.74 and a two-hundred day moving average price of $10.62. The company has a current ratio of 20.73, a quick ratio of 20.61 and a debt-to-equity ratio of 0.15.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings data on Thursday, May 8th. The company reported ($0.02) earnings per share for the quarter, topping the consensus estimate of ($0.05) by $0.03. D-Wave Quantum had a negative return on equity of 227.95% and a negative net margin of 617.84%. The company had revenue of $15.00 million for the quarter, compared to analyst estimates of $10.50 million. As a group, equities research analysts anticipate that D-Wave Quantum Inc. will post -0.41 EPS for the current fiscal year.

Insiders Place Their Bets

In other D-Wave Quantum news, CFO John M. Markovich sold 400,000 shares of D-Wave Quantum stock in a transaction on Wednesday, May 21st. The stock was sold at an average price of $17.30, for a total value of $6,920,000.00. Following the completion of the transaction, the chief financial officer owned 1,577,944 shares in the company, valued at approximately $27,298,431.20. The trade was a 20.22% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Rohit Ghai sold 43,517 shares of D-Wave Quantum stock in a transaction on Thursday, June 12th. The shares were sold at an average price of $16.80, for a total value of $731,085.60. Following the completion of the transaction, the director owned 57,778 shares of the company's stock, valued at approximately $970,670.40. The trade was a 42.96% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,636,796 shares of company stock worth $27,872,091 over the last quarter. Corporate insiders own 3.20% of the company's stock.

Institutional Investors Weigh In On D-Wave Quantum

Institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in D-Wave Quantum by 58.5% in the first quarter. Vanguard Group Inc. now owns 11,285,043 shares of the company's stock valued at $85,766,000 after purchasing an additional 4,166,721 shares during the last quarter. Bank of America Corp DE increased its holdings in D-Wave Quantum by 4,912.4% in the fourth quarter. Bank of America Corp DE now owns 2,548,099 shares of the company's stock valued at $21,404,000 after purchasing an additional 2,497,263 shares during the last quarter. Penserra Capital Management LLC increased its holdings in D-Wave Quantum by 80.1% in the first quarter. Penserra Capital Management LLC now owns 5,068,199 shares of the company's stock valued at $38,518,000 after purchasing an additional 2,253,741 shares during the last quarter. UNICOM Systems Inc. increased its holdings in D-Wave Quantum by 91.9% in the first quarter. UNICOM Systems Inc. now owns 4,627,704 shares of the company's stock valued at $35,171,000 after purchasing an additional 2,216,000 shares during the last quarter. Finally, Trexquant Investment LP bought a new stake in D-Wave Quantum in the first quarter valued at about $8,064,000. Institutional investors own 42.47% of the company's stock.

D-Wave Quantum Company Profile

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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