D-Wave Quantum (NYSE:QBTS) Shares Down 4.3% - Here's Why

Key Points

• Shares fell 4.3% intraday to $18.80 with about 23.56 million shares traded, roughly a 35% drop from the average daily volume.
• Analyst sentiment is largely positive: 14 Buys, 1 Hold and 1 Sell give a consensus "Moderate Buy" and a target price of $38.21, with firms like Mizuho and Needham issuing higher price objectives.
• Insider selling is notable: the CFO sold 200,000 shares and insiders sold about 1.27 million shares (~$36.1M) last quarter, while institutional investors hold roughly 42.5% of the stock.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) dropped 4.3% during mid-day trading on Thursday . The stock traded as low as $18.45 and last traded at $18.80. Approximately 23,562,002 shares were traded during mid-day trading, a decline of 35% from the average daily volume of 35,973,066 shares. The stock had previously closed at $19.64.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on QBTS. Zacks Research raised shares of D-Wave Quantum from a "strong sell" rating to a "hold" rating in a report on Thursday, November 6th. TD Cowen assumed coverage on D-Wave Quantum in a research note on Thursday. They issued a "buy" rating on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of D-Wave Quantum in a report on Monday, December 29th. Mizuho assumed coverage on D-Wave Quantum in a report on Thursday, December 11th. They set an "outperform" rating and a $46.00 price objective for the company. Finally, Needham & Company LLC restated a "buy" rating and issued a $48.00 price objective on shares of D-Wave Quantum in a research report on Thursday, January 29th. Fourteen investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, D-Wave Quantum presently has a consensus rating of "Moderate Buy" and a consensus target price of $38.21.

D-Wave Quantum Trading Down 4.3%

The firm has a market capitalization of $6.95 billion, a PE ratio of -13.93 and a beta of 1.56. The firm's 50-day simple moving average is $26.03 and its 200-day simple moving average is $24.81. The company has a quick ratio of 54.49, a current ratio of 54.68 and a debt-to-equity ratio of 0.05.

Insider Buying and Selling

In related news, CFO John M. Markovich sold 200,000 shares of the company's stock in a transaction on Thursday, November 20th. The shares were sold at an average price of $22.94, for a total transaction of $4,588,000.00. Following the completion of the sale, the chief financial officer directly owned 1,482,874 shares in the company, valued at $34,017,129.56. This represents a 11.88% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director John D. Dilullo sold 8,000 shares of the firm's stock in a transaction dated Friday, December 5th. The stock was sold at an average price of $27.36, for a total value of $218,880.00. Following the completion of the sale, the director directly owned 27,803 shares in the company, valued at $760,690.08. The trade was a 22.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 1,274,466 shares of company stock valued at $36,146,806 over the last quarter. Company insiders own 3.20% of the company's stock.

Institutional Investors Weigh In On D-Wave Quantum

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. GAMMA Investing LLC boosted its position in shares of D-Wave Quantum by 34.6% in the 3rd quarter. GAMMA Investing LLC now owns 1,874 shares of the company's stock worth $46,000 after purchasing an additional 482 shares in the last quarter. Blue Bell Private Wealth Management LLC raised its position in shares of D-Wave Quantum by 5.3% in the 3rd quarter. Blue Bell Private Wealth Management LLC now owns 9,901 shares of the company's stock worth $245,000 after purchasing an additional 500 shares during the last quarter. Huntington National Bank boosted its stake in D-Wave Quantum by 17.9% in the 3rd quarter. Huntington National Bank now owns 3,300 shares of the company's stock worth $82,000 after purchasing an additional 500 shares in the last quarter. bLong Financial LLC grew its position in D-Wave Quantum by 2.3% during the 2nd quarter. bLong Financial LLC now owns 24,643 shares of the company's stock valued at $361,000 after purchasing an additional 551 shares during the last quarter. Finally, Sigma Planning Corp raised its holdings in D-Wave Quantum by 3.6% in the fourth quarter. Sigma Planning Corp now owns 16,329 shares of the company's stock worth $431,000 after buying an additional 560 shares during the last quarter. Hedge funds and other institutional investors own 42.47% of the company's stock.

About D-Wave Quantum

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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