D-Wave Quantum (NYSE:QBTS) Shares Down 8.2% - Here's Why

Key Points

• D-Wave Quantum shares fell 8.2% on Wednesday, closing well below the prior day’s level as trading volume came in slightly under its average.
• Despite the pullback, sentiment around quantum computing remains supportive after Trump administration orders aimed at boosting quantum funding, procurement, and long-term demand, which could benefit D-Wave and peers.
• Analysts remain broadly constructive: multiple firms reiterated Buy/Overweight ratings, and the consensus price target is $36.80, even though D-Wave recently reported revenue that missed estimates and insiders have been selling shares.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s stock price fell 8.2% on Wednesday . The company traded as low as $22.40 and last traded at $22.98. Approximately 31,493,637 shares traded hands during mid-day trading, a decline of 3% from the average daily volume of 32,447,012 shares. The stock had previously closed at $25.03.

Key D-Wave Quantum News

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

• Positive Sentiment: Trump’s new quantum computing orders are expected to boost industry funding, federal procurement, and long-term demand for quantum solutions, creating a clearer growth opportunity for D-Wave Quantum. D-Wave Quantum (QBTS) Could See New Openings After White House Quantum Orders
• Positive Sentiment: Investors are rotating into quantum names broadly as the sector gains momentum from the administration’s push, lifting sentiment around D-Wave Quantum alongside peers. Quantum Computing Stocks Gain On Trump Executive Orders, 2028 Target
• Positive Sentiment: Coverage highlighting D-Wave’s push beyond quantum annealing suggests the company is broadening its technology platform, which could improve its competitiveness and addressable market. D-Wave Pushes Beyond Quantum Annealing. Is QBTS Stock Worth Buying Now?
• Neutral Sentiment: Articles discussing D-Wave’s new simulator and recent breakthrough point to technical progress, but also note the company is still catching up in parts of the market, making the impact on valuation less certain. How Does D-Wave's New Simulator Change the Quantum Computing Landscape?
• Neutral Sentiment: Commentary on D-Wave’s “major quantum breakthrough” and improving bookings/backlog suggests stronger demand, but investors are still weighing that against weak revenue trends. D-Wave Just Unveiled a Major Quantum Breakthrough. QBTS Stock Looks Ready for Another Surge.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on QBTS shares. Cantor Fitzgerald reiterated an "overweight" rating and set a $40.00 price objective on shares of D-Wave Quantum in a research note on Wednesday, May 13th. Jefferies Financial Group reaffirmed a "buy" rating on shares of D-Wave Quantum in a research note on Tuesday, May 12th. Mizuho lifted their price target on D-Wave Quantum from $29.00 to $35.00 and gave the company an "outperform" rating in a research report on Monday, June 15th. B. Riley Financial boosted their price objective on D-Wave Quantum from $36.00 to $40.00 and gave the stock a "buy" rating in a research note on Tuesday, June 2nd. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $40.00 target price on shares of D-Wave Quantum in a research note on Tuesday, June 2nd. Fourteen equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, D-Wave Quantum currently has a consensus rating of "Moderate Buy" and an average price target of $36.80.

D-Wave Quantum Price Performance

The company has a fifty day simple moving average of $23.16 and a 200-day simple moving average of $22.36. The company has a market cap of $8.50 billion, a P/E ratio of -20.34 and a beta of 2.05. 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 released its quarterly earnings data on Tuesday, May 12th. The company reported ($0.05) earnings per share for the quarter, topping the consensus estimate of ($0.08) by $0.03. The business had revenue of $2.86 million during the quarter, compared to analyst estimates of $4.19 million. D-Wave Quantum had a negative return on equity of 44.06% and a negative net margin of 2,957.23%.The company's revenue was down 80.9% compared to the same quarter last year. During the same period last year, the company posted ($0.02) EPS. On average, sell-side analysts predict that D-Wave Quantum Inc. will post -0.43 earnings per share for the current year.

Insiders Place Their Bets

In other D-Wave Quantum news, CFO John M. Markovich sold 328,752 shares of the business's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $27.70, for a total transaction of $9,106,430.40. Following the sale, the chief financial officer owned 1,442,820 shares in the company, valued at approximately $39,966,114. The trade was a 18.56% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Rohit Ghai sold 13,518 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $26.41, for a total transaction of $357,010.38. Following the sale, the director directly owned 23,617 shares of the company's stock, valued at $623,724.97. This represents a 36.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,363,842 shares of company stock worth $35,802,656 over the last three months. Company insiders own 1.30% of the company's stock.

Institutional Investors Weigh In On D-Wave Quantum

A number of large investors have recently made changes to their positions in QBTS. Root Financial Partners LLC boosted its stake in D-Wave Quantum by 388.0% in 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 period. Parallel Advisors LLC raised its stake in D-Wave Quantum by 545.5% during the 1st quarter. Parallel Advisors LLC now owns 1,788 shares of the company's stock valued at $26,000 after purchasing an additional 1,511 shares during the period. Kemnay Advisory Services Inc. acquired a new stake in D-Wave Quantum during the 4th quarter valued at $28,000. PeakShares LLC purchased a new stake in shares of D-Wave Quantum in the first quarter valued at $29,000. Finally, EverSource Wealth Advisors LLC boosted its position 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 worth $30,000 after buying an additional 838 shares during the period. Institutional investors and hedge funds 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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