D-Wave Quantum (NYSE:QBTS) Shares Down 5.8% - Time to Sell?

Key Points

• D-Wave Quantum's shares fell by 5.8% during trading, closing at $33.04, with a significant trading volume decline of 13% compared to its average.
• The company has received mixed analyst ratings, with reports showing an average rating of "Moderate Buy" and a consensus price target of $20.27.
• D-Wave Quantum reported a revenue increase of 40.9% year-over-year, despite posting a loss of ($0.08) earnings per share, which was below analysts' estimates.

Shares of D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) dropped 5.8% during trading on Friday . The company traded as low as $32.49 and last traded at $33.04. Approximately 56,593,697 shares traded hands during mid-day trading, a decline of 13% from the average daily volume of 65,061,984 shares. The stock had previously closed at $35.07.

Analyst Ratings Changes

QBTS has been the subject of a number of recent research reports. Piper Sandler increased their price objective on shares of D-Wave Quantum from $13.00 to $22.00 and gave the company an "overweight" rating in a report on Friday, August 8th. Canaccord Genuity Group started coverage on shares of D-Wave Quantum in a research note on Wednesday, July 23rd. They issued a "buy" rating and a $20.00 price target for the company. Weiss Ratings reissued a "sell (d-)" rating on shares of D-Wave Quantum in a research note on Saturday, September 27th. Cantor Fitzgerald started coverage on shares of D-Wave Quantum in a research note on Wednesday, July 2nd. They issued an "overweight" rating and a $20.00 price target for the company. Finally, Stifel Nicolaus started coverage on shares of D-Wave Quantum in a research note on Tuesday, August 5th. They issued a "buy" rating and a $26.00 price target for the company. Eleven equities research analysts have rated the stock with a Buy rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, D-Wave Quantum presently has an average rating of "Moderate Buy" and a consensus price target of $20.27.

D-Wave Quantum Stock Performance

The company has a market capitalization of $11.30 billion, a price-to-earnings ratio of -31.47 and a beta of 1.49. The company has a current ratio of 42.99, a quick ratio of 42.86 and a debt-to-equity ratio of 0.05. The stock's fifty day simple moving average is $20.58 and its 200-day simple moving average is $15.51.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported ($0.08) earnings per share 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 firm had revenue of $3.10 million during the quarter, compared to analyst estimates of $2.55 million. The business's revenue for the quarter was up 40.9% on a year-over-year basis. Analysts predict that D-Wave Quantum Inc. will post -0.41 EPS for the current year.

Insider Buying and Selling

In related news, CFO John M. Markovich sold 50,000 shares of D-Wave Quantum stock in a transaction on Thursday, September 11th. The shares were sold at an average price of $16.30, for a total transaction of $815,000.00. Following the sale, the chief financial officer directly owned 1,599,511 shares in the company, valued at $26,072,029.30. This trade represents a 3.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director John D. Dilullo sold 8,000 shares of D-Wave Quantum stock in a transaction on Monday, September 15th. The stock was sold at an average price of $17.93, for a total transaction of $143,440.00. Following the sale, the director owned 36,295 shares in the company, valued at $650,769.35. This represents a 18.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 168,000 shares of company stock worth $2,937,740 in the last ninety days. 3.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. GAMMA Investing LLC lifted its position in D-Wave Quantum by 34.6% in the third quarter. GAMMA Investing LLC now owns 1,874 shares of the company's stock valued at $46,000 after purchasing an additional 482 shares during the period. Reyes Financial Architecture Inc. purchased a new stake in D-Wave Quantum during the second quarter worth about $29,000. Atlantic Union Bankshares Corp purchased a new stake in D-Wave Quantum during the second quarter worth about $29,000. Parallel Advisors LLC boosted 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 buying an additional 1,532 shares in the last quarter. Finally, Gables Capital Management Inc. purchased 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 and hedge funds.

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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