D-Wave Quantum (NYSE:QBTS) Shares Down 3.8% - Time to Sell?

Key Points

• Shares fell 3.8% to about $18.09 (low $17.66) on Tuesday with 15.9M shares traded—roughly 47% below average—and the stock sits below its 200‑day moving average ($23.80) though near its 50‑day ($17.44).
• D‑Wave missed quarterly estimates, reporting EPS of -$0.09 vs. -$0.05 expected and revenue of $2.75M vs. $3.74M expected, and the company shows deeply negative margins and ROE with analysts forecasting roughly -0.44 EPS for the year.
• Analyst sentiment is mixed-to-positive with a consensus rating of "Moderate Buy" (14 Buys, 1 Hold, 2 Sells) and an average price target of $35.53, though insiders sold about 31,776 shares in the last quarter.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price fell 3.8% during trading on Tuesday . The company traded as low as $17.66 and last traded at $18.09. 15,911,821 shares were traded during trading, a decline of 47% from the average session volume of 29,953,594 shares. The stock had previously closed at $18.80.

Analyst Ratings Changes

A number of analysts have issued reports on QBTS shares. TD Cowen initiated coverage on shares of D-Wave Quantum in a research note on Thursday, February 12th. They set a "buy" rating on the stock. Zacks Research cut shares of D-Wave Quantum from a "hold" rating to a "strong sell" rating in a report on Friday, March 6th. Northland Securities began coverage on shares of D-Wave Quantum in a research note on Monday, April 20th. They set a "market perform" rating and a $22.00 target price on the stock. Needham & Company LLC reduced their target price on shares of D-Wave Quantum from $48.00 to $40.00 and set a "buy" rating on the stock in a report on Thursday, February 26th. Finally, Benchmark reissued a "buy" rating and issued a $35.00 price target on shares of D-Wave Quantum in a research report on Friday, January 23rd. Fourteen equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $35.53.

D-Wave Quantum Stock Down 3.8%

The business's 50 day moving average is $17.44 and its 200-day moving average is $23.80. The company has a debt-to-equity ratio of 0.04, a current ratio of 42.38 and a quick ratio of 42.25. The company has a market cap of $6.69 billion, a PE ratio of -16.45 and a beta of 1.78.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported ($0.09) EPS for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.04). The firm had revenue of $2.75 million during the quarter, compared to analysts' expectations of $3.74 million. D-Wave Quantum had a negative net margin of 1,444.10% and a negative return on equity of 58.58%. D-Wave Quantum's revenue was up 21.7% on a year-over-year basis. As a group, analysts predict that D-Wave Quantum Inc. will post -0.44 EPS for the current year.

Insiders Place Their Bets

In other news, Director Rohit Ghai sold 10,000 shares of the company's stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $17.62, for a total transaction of $176,200.00. Following the completion of the transaction, the director directly owned 27,778 shares of the company's stock, valued at approximately $489,448.36. This represents a 26.47% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO John M. Markovich sold 10,706 shares of the stock in a transaction dated Friday, March 13th. The shares were sold at an average price of $17.63, for a total value of $188,746.78. Following the completion of the transaction, the chief financial officer owned 1,451,427 shares in the company, valued at approximately $25,588,658.01. The trade was a 0.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 31,776 shares of company stock valued at $574,571 over the last quarter. Corporate insiders own 3.20% of the company's stock.

Institutional Trading of D-Wave Quantum

Several institutional investors have recently modified their holdings of QBTS. Baird Financial Group Inc. raised its stake in D-Wave Quantum by 12.0% during the 1st quarter. Baird Financial Group Inc. now owns 12,135 shares of the company's stock worth $92,000 after acquiring an additional 1,300 shares in the last quarter. Royal Bank of Canada increased its position in D-Wave Quantum by 59.8% during the first quarter. Royal Bank of Canada now owns 162,088 shares of the company's stock worth $1,231,000 after buying an additional 60,668 shares during the period. AQR Capital Management LLC increased its position in D-Wave Quantum by 201.0% during the first quarter. AQR Capital Management LLC now owns 200,765 shares of the company's stock worth $1,526,000 after buying an additional 134,066 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in D-Wave Quantum by 93.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,572 shares of the company's stock valued at $825,000 after buying an additional 52,437 shares during the last quarter. Finally, NewEdge Advisors LLC boosted its holdings in shares of D-Wave Quantum by 125.7% in the first quarter. NewEdge Advisors LLC now owns 43,786 shares of the company's stock valued at $333,000 after acquiring an additional 24,382 shares during the period. Hedge funds and other 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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