D-Wave Quantum (NYSE:QBTS) Shares Down 7.4% - Here's Why

Key Points

• Shares down 7.4%: D-Wave fell to $23.74 Monday (intraday low $23.45) on roughly 29.1 million shares traded, about 28% below its average daily volume.
• Analyst optimism: Multiple firms raised price targets (examples: Cantor Fitzgerald $40, Canaccord $41, Mizuho $46, Needham $48) and the consensus target is $37.86, with 13 Buy ratings, 1 Hold and 1 Sell.
• Mixed fundamentals and insider selling: The company beat quarterly EPS and revenue estimates with revenue up 105.6% year-over-year but remains unprofitable with large negative margins/ROE, and insiders sold roughly 2.35 million shares last quarter (~$65.6M).

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) shares dropped 7.4% during mid-day trading on Monday . The stock traded as low as $23.45 and last traded at $23.74. Approximately 29,077,689 shares changed hands during trading, a decline of 28% from the average daily volume of 40,167,191 shares. The stock had previously closed at $25.63.

Wall Street Analyst Weigh In

Several analysts recently weighed in on QBTS shares. Cantor Fitzgerald lifted their price objective on D-Wave Quantum from $20.00 to $40.00 and gave the stock an "overweight" rating in a research note on Friday, November 7th. Canaccord Genuity Group boosted their target price on shares of D-Wave Quantum from $20.00 to $41.00 and gave the company a "buy" rating in a report on Friday, November 7th. Mizuho assumed coverage on shares of D-Wave Quantum in a research report on Thursday, December 11th. They set an "outperform" rating and a $46.00 price objective for the company. Needham & Company LLC reaffirmed a "buy" rating and set a $48.00 price target on shares of D-Wave Quantum in a research note on Thursday. Finally, Rosenblatt Securities restated a "buy" rating and issued a $40.00 target price on shares of D-Wave Quantum in a report on Wednesday, January 7th. Thirteen investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $37.86.

D-Wave Quantum Trading Down 7.4%

The company has a 50-day moving average price of $26.29 and a two-hundred day moving average price of $24.52. The company has a current ratio of 54.68, a quick ratio of 54.49 and a debt-to-equity ratio of 0.05.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings data on Thursday, November 6th. The company reported ($0.05) EPS for the quarter, beating the consensus estimate of ($0.07) by $0.02. The firm had revenue of $3.74 million for the quarter, compared to analyst estimates of $3.03 million. D-Wave Quantum had a negative return on equity of 97.58% and a negative net margin of 1,651.81%.D-Wave Quantum's revenue for the quarter was up 105.6% compared to the same quarter last year. As a group, sell-side analysts predict that D-Wave Quantum Inc. will post -0.41 earnings per share for the current fiscal year.

Insider Buying and Selling at D-Wave Quantum

In other D-Wave Quantum news, Director Rohit Ghai sold 10,000 shares of the business's stock in a transaction on Monday, December 15th. The shares were sold at an average price of $24.28, for a total transaction of $242,800.00. Following the completion of the sale, the director directly owned 37,778 shares in the company, valued at approximately $917,249.84. The trade was a 20.93% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Alan E. Baratz sold 35,013 shares of the company's stock in a transaction dated Wednesday, January 14th. The shares were sold at an average price of $28.06, for a total transaction of $982,464.78. Following the sale, the chief executive officer directly owned 2,598,150 shares of the company's stock, valued at $72,904,089. The trade was a 1.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 2,346,916 shares of company stock worth $65,591,314. Insiders own 3.20% of the company's stock.

Institutional Investors Weigh In On D-Wave Quantum

Several institutional investors and hedge funds have recently modified their holdings of the stock. Osaic Holdings Inc. increased its holdings in D-Wave Quantum by 125.7% during the 2nd quarter. Osaic Holdings Inc. now owns 247,004 shares of the company's stock worth $3,616,000 after purchasing an additional 137,549 shares during the period. UNICOM Systems Inc. raised its stake in D-Wave Quantum by 12.1% in the third quarter. UNICOM Systems Inc. now owns 3,121,346 shares of the company's stock valued at $77,128,000 after buying an additional 337,838 shares during the last quarter. IFP Advisors Inc grew its holdings in shares of D-Wave Quantum by 123.8% during the second quarter. IFP Advisors Inc now owns 14,814 shares of the company's stock valued at $217,000 after buying an additional 8,194 shares during the last quarter. Csenge Advisory Group boosted its position in D-Wave Quantum by 99.1% in the third quarter. Csenge Advisory Group now owns 35,886 shares of the company's stock valued at $887,000 after buying an additional 17,860 shares during the last quarter. Finally, World Investment Advisors acquired a new position in D-Wave Quantum during the second quarter valued at $190,000. 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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