D-Wave Quantum (NYSE:QBTS) Shares Gap Down - Here's What Happened

Key Points

• D-Wave Quantum Inc. shares opened at $30.11, down significantly from the previous close of $32.19, indicating a gap-down in trading before the market opened.
• Despite recent setbacks, Wall Street analysts have mixed views, with eleven analysts rating the stock as a Buy and two as a Sell, resulting in an average rating of "Moderate Buy" with a target price of $20.27.
• The company reported a revenue increase of 40.9% year-over-year but missed earnings expectations, posting an EPS of ($0.08), which was lower than the estimated ($0.05).

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $32.19, but opened at $30.11. D-Wave Quantum shares last traded at $29.69, with a volume of 15,689,521 shares.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. Needham & Company LLC reaffirmed a "buy" rating on shares of D-Wave Quantum in a report on Monday, August 4th. Cantor Fitzgerald assumed coverage on shares of D-Wave Quantum in a report on Wednesday, July 2nd. They set an "overweight" rating and a $20.00 target price for the company. Zacks Research lowered shares of D-Wave Quantum from a "hold" rating to a "strong sell" rating in a report on Monday, October 6th. Wall Street Zen lowered shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Finally, B. Riley upped their target price on shares of D-Wave Quantum from $22.00 to $33.00 and gave the stock a "buy" rating in a report on Monday, September 22nd. Eleven equities research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $20.27.

D-Wave Quantum Price Performance

The stock's fifty day moving average is $23.93 and its 200-day moving average is $17.27. The company has a debt-to-equity ratio of 0.05, a current ratio of 42.99 and a quick ratio of 42.86. The stock has a market cap of $9.47 billion, a PE ratio of -26.36 and a beta of 1.49.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported ($0.08) EPS for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.03). The company had revenue of $3.10 million during the quarter, compared to analyst estimates of $2.55 million. D-Wave Quantum had a negative net margin of 1,263.92% and a negative return on equity of 118.87%. The firm's quarterly revenue was up 40.9% compared to the same quarter last year. As a group, equities analysts anticipate that D-Wave Quantum Inc. will post -0.41 EPS for the current year.

Insider Activity at D-Wave Quantum

In other D-Wave Quantum news, Director John D. Dilullo sold 8,000 shares of the stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $17.93, for a total value of $143,440.00. Following the transaction, the director directly owned 36,295 shares in the company, valued at $650,769.35. This represents a 18.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO John M. Markovich sold 100,000 shares of the stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $18.00, for a total transaction of $1,800,000.00. Following the completion of the transaction, the chief financial officer owned 1,558,753 shares in the company, valued at $28,057,554. This represents a 6.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 207,363 shares of company stock valued at $4,659,478. Company insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On D-Wave Quantum

A number of hedge funds have recently modified their holdings of QBTS. Marex Group plc acquired a new stake in shares of D-Wave Quantum during the second quarter worth $80,070,000. Vanguard Group Inc. lifted its holdings in shares of D-Wave Quantum by 58.5% during the first quarter. Vanguard Group Inc. now owns 11,285,043 shares of the company's stock worth $85,766,000 after purchasing an additional 4,166,721 shares during the period. Arrowstreet Capital Limited Partnership acquired a new stake in shares of D-Wave Quantum during the second quarter worth $45,372,000. Penserra Capital Management LLC lifted its holdings in shares of D-Wave Quantum by 80.1% during the first quarter. Penserra Capital Management LLC now owns 5,068,199 shares of the company's stock worth $38,518,000 after purchasing an additional 2,253,741 shares during the period. Finally, UNICOM Systems Inc. lifted its holdings in shares of D-Wave Quantum by 91.9% during the first quarter. UNICOM Systems Inc. now owns 4,627,704 shares of the company's stock worth $35,171,000 after purchasing an additional 2,216,000 shares during the period. 42.47% of the stock is currently owned by hedge funds and other institutional investors.

About D-Wave Quantum

D-Wave Quantum Inc develops and delivers quantum computing systems, software, and services worldwide. The company offers Advantage, a fifth-generation quantum computer; Ocean, a suite of open-source python tools; and Leap, a cloud-based service that provides real-time access to a live quantum computer, as well as access to Advantage, hybrid solvers, the Ocean software development kit, live code, demos, learning resources, and a vibrant developer community.

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