D-Wave Quantum (NYSE:QBTS) Shares Down 8.3% After Insider Selling

Key Points

• D-Wave Quantum shares fell 8.3% to $16.18 after Vice President Sophie C. Ames sold 3,070 shares worth approximately $52,000 under a pre-arranged Rule 10b5-1 plan. The sale reduced her holdings by 0.52%.
• Analysts remain broadly optimistic, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $36.47. Recent targets range from $30 to $40, supported by D-Wave’s expanded AT&T partnership and reported commercial traction.
• Financial and valuation risks remain significant: quarterly revenue of $2.86 million was 80.9% lower year over year and below estimates, while the company remains unprofitable. Quantum-sector selling and concerns about high valuations have also pressured the stock.

Shares of D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) traded down 8.3% on Wednesday following insider selling activity. The company traded as low as $16.07 and last traded at $16.18. Approximately 19,981,979 shares changed hands during trading, a decline of 34% from the average daily volume of 30,318,273 shares. The stock had previously closed at $17.64.

Specifically, VP Sophie C. Ames sold 3,070 shares of the company's stock in a transaction on Monday, July 20th. The shares were sold at an average price of $16.95, for a total value of $52,036.50. Following the completion of the sale, the vice president owned 589,009 shares in the company, valued at $9,983,702.55. This represents a 0.52% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

QBTS has been the topic of a number of recent analyst reports. Mizuho raised their price target on shares of D-Wave Quantum from $29.00 to $35.00 and gave the company an "outperform" rating in a research report on Monday, June 15th. Needham & Company LLC reaffirmed a "buy" rating and issued a $40.00 price objective on shares of D-Wave Quantum in a research report on Tuesday, June 2nd. Benchmark initiated coverage on shares of D-Wave Quantum in a research report on Monday. They issued a "buy" rating and a $30.00 price objective for the company. Roth Capital increased their price objective on shares of D-Wave Quantum from $30.00 to $40.00 and gave the company a "buy" rating in a research note on Tuesday, June 2nd. Finally, Stifel Nicolaus set a $35.00 target price on shares of D-Wave Quantum in a research report on Tuesday, June 2nd. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $36.47.

Key Headlines Impacting D-Wave Quantum

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

• Positive Sentiment: AT&T expanded its partnership with D-Wave. AT&T plans to use D-Wave’s quantum-annealing technology more broadly for network operations. A highlighted test reduced a network-optimization task from about 60 minutes to 15 seconds, or a 240-fold improvement, strengthening evidence that D-Wave’s systems are being applied to real-world enterprise problems. D-Wave Expands AT&T Partnership
• Positive Sentiment: Analyst sentiment improved. Benchmark upgraded D-Wave to “strong buy,” while Rosenblatt reaffirmed its Buy rating and maintained a $43 price target. Analysts also point to record bookings, an expanding backlog and stronger commercial traction as advantages ahead of second-quarter earnings. D-Wave Versus Rigetti Ahead of Earnings
• Neutral Sentiment: Investors are awaiting the next earnings report. The reported bookings and backlog could support future revenue, but the upcoming quarter will be important in determining whether D-Wave is converting commercial interest into sustained financial growth.
• Negative Sentiment: Sector-wide selling is the main near-term drag. Quantum stocks have fallen sharply over the past month as investors pulled capital from expensive, often unprofitable technology companies. Concerns about AI-infrastructure spending, along with profit-taking after the AT&T-driven rally, have pressured QBTS and its peers. Quantum Computing Stock Selloff
• Negative Sentiment: Profitability and valuation remain risks. D-Wave’s latest reported revenue was well below estimates and declined sharply year over year, while the company remains unprofitable. A vice president also sold 3,070 shares under a pre-arranged Rule 10b5-1 plan, a relatively small transaction but an additional cautionary signal. D-Wave Insider Sale

D-Wave Quantum Trading Down 8.3%

The stock has a market capitalization of $5.99 billion, a PE ratio of -14.32 and a beta of 2.11. The company has a current ratio of 21.41, a quick ratio of 21.31 and a debt-to-equity ratio of 0.03. The firm has a 50-day moving average price of $22.99 and a 200-day moving average price of $21.07.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last issued its quarterly earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share for the quarter, topping analysts' consensus estimates of ($0.08) by $0.03. The company had revenue of $2.86 million for the quarter, compared to the consensus estimate 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 quarterly revenue was down 80.9% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.02) EPS. As a group, equities analysts forecast that D-Wave Quantum Inc. will post -0.42 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. UBS Group AG increased its stake in shares of D-Wave Quantum by 541.6% during the 3rd quarter. UBS Group AG now owns 12,089,703 shares of the company's stock worth $298,737,000 after purchasing an additional 10,205,427 shares during the last quarter. Geode Capital Management LLC lifted its stake in D-Wave Quantum by 11.5% in the fourth quarter. Geode Capital Management LLC now owns 8,394,726 shares of the company's stock valued at $220,085,000 after purchasing an additional 866,405 shares during the last quarter. State Street Corp grew its holdings in D-Wave Quantum by 5.3% during the fourth quarter. State Street Corp now owns 7,707,085 shares of the company's stock valued at $201,540,000 after purchasing an additional 385,809 shares during the period. Marex Group plc grew its holdings in D-Wave Quantum by 74.9% during the fourth quarter. Marex Group plc now owns 4,592,656 shares of the company's stock valued at $120,098,000 after purchasing an additional 1,966,500 shares during the period. Finally, Clear Street Group Inc. increased its position in D-Wave Quantum by 40.4% in the fourth quarter. Clear Street Group Inc. now owns 4,281,254 shares of the company's stock worth $111,955,000 after buying an additional 1,232,106 shares during the last quarter. 42.47% of the stock is currently 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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