D-Wave Quantum (NYSE:QBTS) Stock Price Down 3.7% - Time to Sell?

Key Points

• D-Wave Quantum's shares decreased by 3.7% to $17.83, with a significant decline in trading volume of 71% from its average daily volume.
• The company reported a quarterly revenue of $3.10 million, surpassing expectations, but missed earnings per share estimates, resulting in a negative return on equity of 118.87%.
• Analysts maintain a Moderate Buy consensus rating with an average price target of $19.27, while the majority of analysts have issued a buy rating for the stock.

Shares of D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) fell 3.7% during trading on Wednesday . The company traded as low as $17.81 and last traded at $17.83. 19,716,812 shares changed hands during mid-day trading, a decline of 71% from the average session volume of 68,609,234 shares. The stock had previously closed at $18.51.

Analyst Ratings Changes

A number of brokerages have commented on QBTS. Stifel Nicolaus began coverage on D-Wave Quantum in a research report on Tuesday, August 5th. They issued a "buy" rating and a $26.00 price objective for the company. Canaccord Genuity Group began coverage on D-Wave Quantum in a research report on Wednesday, July 23rd. They issued a "buy" rating and a $20.00 price objective for the company. Benchmark reiterated a "buy" rating and issued a $20.00 price objective on shares of D-Wave Quantum in a research report on Monday, August 4th. Piper Sandler raised their target price on D-Wave Quantum from $13.00 to $22.00 and gave the stock an "overweight" rating in a research report on Friday, August 8th. Finally, Rosenblatt Securities began coverage on D-Wave Quantum in a research report on Tuesday, July 29th. They set a "buy" rating and a $30.00 target price for the company. One equities research analyst has rated the stock with a sell rating and eleven have issued a buy rating to the stock. According to MarketBeat, D-Wave Quantum currently has an average rating of "Moderate Buy" and an average target price of $19.27.

D-Wave Quantum Trading Down 4.9%

The company has a debt-to-equity ratio of 0.05, a current ratio of 42.99 and a quick ratio of 42.86. The business has a 50 day moving average of $16.75 and a 200 day moving average of $11.36. The firm has a market capitalization of $5.18 billion, a price-to-earnings ratio of -16.87 and a beta of 1.41.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported ($0.08) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.03). D-Wave Quantum had a negative net margin of 1,263.92% and a negative return on equity of 118.87%. The business had revenue of $3.10 million during the quarter, compared to analyst estimates of $2.55 million. D-Wave Quantum's revenue for the quarter was up 40.9% compared to the same quarter last year. As a group, research analysts predict that D-Wave Quantum Inc. will post -0.41 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Roger Biscay sold 106,626 shares of the business's stock in a transaction dated Thursday, June 12th. The stock was sold at an average price of $16.85, for a total value of $1,796,648.10. Following the sale, the director directly owned 14,260 shares in the company, valued at $240,281. The trade was a 88.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Rohit Ghai sold 43,517 shares of the business's stock in a transaction dated 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 sale, the director owned 57,778 shares in the company, valued at approximately $970,670.40. This trade represents a 42.96% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 1,636,796 shares of company stock valued at $27,872,091. Corporate insiders own 3.20% of the company's stock.

Institutional Trading of D-Wave Quantum

Institutional investors have recently modified their holdings of the company. Fourth Dimension Wealth LLC bought a new stake in shares of D-Wave Quantum in the fourth quarter valued at about $26,000. Reyes Financial Architecture Inc. bought a new stake in D-Wave Quantum during the second quarter worth about $29,000. Atlantic Union Bankshares Corp bought a new stake in D-Wave Quantum during the second quarter worth about $29,000. Parallel Advisors LLC raised its holdings in D-Wave Quantum by 227.3% during the second quarter. Parallel Advisors LLC now owns 2,206 shares of the company's stock worth $32,000 after acquiring an additional 1,532 shares in the last quarter. Finally, Gables Capital Management Inc. bought a new stake in D-Wave Quantum during the second quarter worth about $37,000. 42.47% of the stock is currently owned by institutional investors.

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.