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

Key Points

• D-Wave Quantum shares fell 7.4% on Tuesday, trading as low as $26.63 after closing at $29.40, with volume below its daily average.
• The company and its unit recently secured second-year U.S.-backed defense and Microelectronics Commons funding to advance superconducting quantum innovation, which investors see as a positive catalyst for its hardware roadmap.
• Despite the funding optimism, insider selling and mixed fundamentals remain a concern: executives have sold shares recently, and the latest earnings showed a revenue miss even though EPS beat estimates.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s stock price was down 7.4% during trading on Tuesday . The stock traded as low as $26.63 and last traded at $27.21. Approximately 16,633,976 shares changed hands during trading, a decline of 47% from the average daily volume of 31,325,207 shares. The stock had previously closed at $29.40.

More D-Wave Quantum News

Here are the key news stories impacting D-Wave Quantum this week:

• Positive Sentiment: D-Wave’s unit secured second-year funding under a U.S.-backed defense/microelectronics program to advance superconducting quantum innovation, reinforcing its hardware roadmap and validating the technology. D-Wave unit secures second-year funding for superconducting quantum innovation
• Positive Sentiment: Multiple reports say the funding boost should help D-Wave accelerate its superconducting quantum computing push, which investors are viewing as a meaningful catalyst for revenue opportunities and strategic momentum. D-Wave Stock Climbs as U.S.-Backed Quantum Funding Boosts QBTS Hardware Push
• Positive Sentiment: The company also announced it was awarded Year 2 Microelectronics Commons project funding to advance superconducting quantum innovation, adding to the bullish narrative around government-backed commercialization. D-Wave Awarded Year 2 Microelectronics Commons Project Funding to Advance Superconducting Quantum Innovation
• Neutral Sentiment: Broader articles on quantum stocks and IPO activity highlight renewed interest in the sector, but they are more thematic than company-specific for QBTS. Quantum Stocks Just Got a Lifeline—Who Benefits Most?
• Neutral Sentiment: Coverage of D-Wave’s sharp earlier move after strong Q1 results and record bookings is still supporting sentiment, but it reflects a prior earnings-driven rally rather than a new catalyst. D-Wave Stock Skyrockets 62% After Q1 Earnings: Time to Buy QBTS?
• Negative Sentiment: One report notes insider sales after the stock’s surge, which could temper enthusiasm if investors worry management is taking advantage of the rally. D-Wave Quantum Insider Sales Surface after QBTS Stock Soars on Quantum Funding Buzz

Wall Street Analyst Weigh In

QBTS has been the subject of a number of analyst reports. Rosenblatt Securities reaffirmed a "buy" rating and set a $43.00 target price on shares of D-Wave Quantum in a report on Wednesday, May 13th. Wall Street Zen lowered D-Wave Quantum from a "hold" rating to a "sell" rating in a research report on Saturday, February 7th. Mizuho lowered their target price on shares of D-Wave Quantum from $31.00 to $29.00 and set an "outperform" rating for the company in a research note on Wednesday, May 13th. Northland Securities assumed coverage on shares of D-Wave Quantum in a research report on Monday, April 20th. They set a "market perform" rating and a $22.00 price target on the stock. Finally, Canaccord Genuity Group lowered their price objective on shares of D-Wave Quantum from $43.00 to $41.00 and set a "buy" rating for the company in a research report on Wednesday, May 13th. Fourteen analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $34.67.

D-Wave Quantum Stock Performance

The stock has a market cap of $10.19 billion, a P/E ratio of -24.38 and a beta of 1.95. The company has a 50 day simple moving average of $18.63 and a 200-day simple moving average of $22.13. The company has a debt-to-equity ratio of 0.03, a current ratio of 21.41 and a quick ratio of 21.31.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last posted its quarterly earnings results on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, beating analysts' consensus estimates of ($0.08) by $0.03. The company had revenue of $2.86 million during the quarter, compared to analyst estimates of $4.19 million. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The firm's revenue was down 80.9% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.02) EPS. On average, equities analysts expect that D-Wave Quantum Inc. will post -0.44 earnings per share for the current fiscal year.

Insider Activity at D-Wave Quantum

In related news, Director Rohit Ghai sold 10,000 shares of the company's stock in a transaction on 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 sale, the director owned 27,778 shares in the company, valued at approximately $489,448.36. This represents a 26.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO John M. Markovich sold 10,706 shares of the stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $17.63, for a total transaction of $188,746.78. Following 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 54,801 shares of company stock valued at $1,011,586 in the last quarter. 3.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of QBTS. Root Financial Partners LLC boosted its holdings in shares of D-Wave Quantum by 388.0% during the 4th quarter. Root Financial Partners LLC now owns 976 shares of the company's stock worth $26,000 after purchasing an additional 776 shares during the last quarter. Kemnay Advisory Services Inc. purchased a new stake in D-Wave Quantum in the fourth quarter valued at approximately $28,000. EverSource Wealth Advisors LLC grew its stake in shares of D-Wave Quantum by 267.7% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company's stock valued at $30,000 after buying an additional 838 shares in the last quarter. Mcguire Capital Advisors Inc. acquired a new stake in shares of D-Wave Quantum in the fourth quarter valued at $31,000. Finally, Ancora Advisors LLC acquired a new position in D-Wave Quantum during the 3rd quarter worth about $30,000. 42.47% of the stock is owned by hedge funds and other institutional investors.

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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