D-Wave Quantum (NYSE:QBTS) Shares Down 9% - Here's Why

Key Points

• D-Wave Quantum shares fell 9% in intraday trading, dropping to as low as $23.88 as broader profit-taking hit the quantum stock group after recent gains.
• Analyst sentiment remains generally bullish, with firms like Mizuho and Rosenblatt raising price targets and the stock carrying a consensus Moderate Buy rating with a $36.80 target price.
• Investors are balancing long-term optimism against valuation concerns, as the company’s roadmap and growth potential are being praised, but weak revenue, a stretched valuation, and recent insider selling are raising caution.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price dropped 9% during mid-day trading on Tuesday . The stock traded as low as $23.88 and last traded at $23.9090. Approximately 29,225,397 shares traded hands during trading, a decline of 10% from the average daily volume of 32,349,762 shares. The stock had previously closed at $26.26.

Key Headlines Impacting D-Wave Quantum

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

• Positive Sentiment: Mizuho reportedly raised its price target after D-Wave’s analyst day, reinforcing optimism around the company’s roadmap and execution plans. D-Wave Quantum jumps as Mizuho ups price target after analyst day
• Positive Sentiment: Recent coverage highlighted D-Wave’s new gate-model roadmap, including a goal of reaching 100 logical qubits by 2032, which supports the long-term growth story. D-Wave Quantum (QBTS) Inspires Confidence With Latest Gate-Model Roadmap
• Positive Sentiment: Some market commentary continues to frame QBTS as a leading pure-play quantum name, with bullish technical commentary suggesting the stock still has momentum potential if support levels hold. D-Wave Quantum (QBTS) Price Forecast: Bullish Retest Strengthens Setup
• Neutral Sentiment: Investors remain focused on the company’s long-term quantum-computing opportunity, but also on whether revenue growth can eventually justify the stock’s elevated valuation. Is QBTS the NVIDIA of Quantum Computing or is it Overvalued?
• Neutral Sentiment: Broader investor interest in quantum stocks stayed high, but the group’s rally reversed intraday as traders rotated out of the sector after Monday’s sharp gains. IonQ, Rigetti, D-Wave, and Quantum Computing Inc. All Fall 5% to 7% as the Quantum Rally Reverses
• Negative Sentiment: Analysts and market commentary are warning that QBTS’s valuation has become stretched, which raises the risk of pullbacks if execution or revenue growth slows. Stock Market Today, June 15: D-Wave Quantum Jumps After Mizuho Raises Price Target on Roadmap Progress
• Negative Sentiment: Recent coverage also noted insider selling, which may have added to investor caution around the stock’s near-term upside. D-Wave Quantum (QBTS) Stock Climbs as Insider Sales Raise Investor Questions

Wall Street Analysts Forecast Growth

QBTS has been the subject of several recent analyst reports. Cantor Fitzgerald restated an "overweight" rating and set a $40.00 price objective on shares of D-Wave Quantum in a research report on Wednesday, May 13th. Mizuho raised their price objective on shares of D-Wave Quantum from $29.00 to $35.00 and gave the stock an "outperform" rating in a research report on Monday. Zacks Research upgraded shares of D-Wave Quantum from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 28th. Rosenblatt Securities restated a "buy" rating and set a $43.00 price objective on shares of D-Wave Quantum in a research report on Thursday, June 11th. Finally, Jefferies Financial Group restated a "buy" rating on shares of D-Wave Quantum in a research report on Tuesday, May 12th. Fourteen 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 stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $36.80.

D-Wave Quantum Stock Down 9.0%

The company has a market capitalization of $8.84 billion, a PE ratio of -21.16 and a beta of 2.05. 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 business has a fifty day moving average of $21.95 and a 200 day moving average of $22.29.

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 (EPS) 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 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 business's revenue for the quarter was down 80.9% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.02) earnings per share. Equities research analysts anticipate that D-Wave Quantum Inc. will post -0.43 EPS for the current year.

Insider Transactions at D-Wave Quantum

In other news, VP Sophie C. Ames sold 23,025 shares of the stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $18.98, for a total value of $437,014.50. Following the completion of the sale, the vice president directly owned 596,803 shares of the company's stock, valued at approximately $11,327,320.94. This represents a 3.71% 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 this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Markovich sold 50,979 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $26.24, for a total value of $1,337,688.96. Following the sale, the chief financial officer directly owned 1,388,933 shares of the company's stock, valued at approximately $36,445,601.92. This represents a 3.54% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,104,281 shares of company stock valued at $29,198,153 over the last ninety days. 1.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Root Financial Partners LLC increased its stake 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 valued at $26,000 after acquiring an additional 776 shares during the last quarter. Parallel Advisors LLC lifted its position in D-Wave Quantum by 545.5% during the 1st quarter. Parallel Advisors LLC now owns 1,788 shares of the company's stock worth $26,000 after acquiring an additional 1,511 shares in the last quarter. Kemnay Advisory Services Inc. acquired a new position in D-Wave Quantum during the 4th quarter worth approximately $28,000. PeakShares LLC acquired a new position in D-Wave Quantum during the 1st quarter worth approximately $29,000. Finally, EverSource Wealth Advisors LLC lifted its position in D-Wave Quantum by 267.7% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company's stock worth $30,000 after acquiring an additional 838 shares in the last quarter. Institutional investors and hedge funds 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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