D-Wave Quantum (NYSE:QBTS) Shares Down 6% - Should You Sell?

Key Points

• Shares fell 6% to $20.37 on Tuesday with volume of ~36.9M shares (up 22% vs. average); the stock sits above its 50‑day moving average ($17.44) but below its 200‑day ($24.32).
• Analysts hold a consensus "Moderate Buy" rating with a $35.53 average target (14 Buys, 1 Hold, 2 Sells), implying notable analyst‑priced upside.
• D‑Wave missed quarterly estimates—EPS ($0.09) vs. ($0.05) expected and revenue $2.75M vs. $3.74M—reports deeply negative margins/ROE, and insiders sold about 28,706 shares last quarter (insiders own 3.2%).

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) shares were down 6% on Tuesday . The company traded as low as $20.28 and last traded at $20.3690. Approximately 36,855,998 shares changed hands during mid-day trading, an increase of 22% from the average daily volume of 30,306,703 shares. The stock had previously closed at $21.66.

Analyst Ratings Changes

A number of brokerages recently commented on QBTS. Weiss Ratings reiterated a "sell (d-)" rating on shares of D-Wave Quantum in a research note on Friday, March 27th. Roth Mkm decreased their price target on D-Wave Quantum from $40.00 to $30.00 and set a "buy" rating for the company in a report on Friday, February 27th. Canaccord Genuity Group set a $43.00 price objective on D-Wave Quantum in a research report on Thursday, January 29th. Benchmark reiterated a "buy" rating and issued a $35.00 price objective on shares of D-Wave Quantum in a report on Friday, January 23rd. Finally, Rosenblatt Securities restated a "buy" rating and set a $43.00 target price on shares of D-Wave Quantum in a research note on Wednesday, January 28th. Fourteen research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $35.53.

D-Wave Quantum Price Performance

The stock has a market capitalization of $7.53 billion, a price-to-earnings ratio of -18.52 and a beta of 1.78. The company has a current ratio of 42.38, a quick ratio of 42.25 and a debt-to-equity ratio of 0.04. The company's 50 day moving average is $17.44 and its 200 day moving average is $24.32.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.04). D-Wave Quantum had a negative net margin of 1,444.10% and a negative return on equity of 58.58%. The company had revenue of $2.75 million during the quarter, compared to analyst estimates of $3.74 million. The business's revenue was up 21.7% compared to the same quarter last year. Research analysts anticipate that D-Wave Quantum Inc. will post -0.35 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director John D. Dilullo sold 8,000 shares of the firm's stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $18.01, for a total transaction of $144,080.00. Following the transaction, the director owned 19,803 shares in the company, valued at $356,652.03. This trade represents a 28.77% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Rohit Ghai sold 10,000 shares of D-Wave Quantum stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $17.62, for a total value of $176,200.00. Following the transaction, the director directly owned 27,778 shares in the company, valued at approximately $489,448.36. This trade represents a 26.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 28,706 shares of company stock worth $509,027 in the last quarter. 3.20% of the stock is owned by insiders.

Institutional Trading of D-Wave Quantum

Institutional investors and hedge funds have recently bought and sold shares of the business. Root Financial Partners LLC increased its stake in D-Wave Quantum by 388.0% in the fourth quarter. Root Financial Partners LLC now owns 976 shares of the company's stock valued at $26,000 after purchasing an additional 776 shares during the period. Kemnay Advisory Services Inc. acquired a new stake in shares of D-Wave Quantum during the fourth quarter worth about $28,000. EverSource Wealth Advisors LLC grew its holdings in shares of D-Wave Quantum by 267.7% during the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company's stock worth $30,000 after buying an additional 838 shares during the last quarter. Ancora Advisors LLC purchased a new position in shares of D-Wave Quantum during the third quarter worth about $30,000. Finally, Financial Consulate Inc. acquired a new position in D-Wave Quantum in the 3rd quarter valued at about $31,000. 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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