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

Key Points

• D-Wave Quantum Inc. shares gapped down significantly from a previous closing price of $26.88 to an opening price of $24.49, reflecting market volatility ahead of trading on Monday.
• Despite a recent dip, analysts maintain a consensus rating of "Buy" with an average target price of $20.27 across twelve investment analysts, indicating potential investor confidence.
• The company reported a 40.9% year-over-year revenue increase at $3.10 million, although it missed EPS estimates with a loss of ($0.08) per share, suggesting ongoing financial challenges amid growth.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price gapped down prior to trading on Monday . The stock had previously closed at $26.88, but opened at $24.49. D-Wave Quantum shares last traded at $25.36, with a volume of 31,096,385 shares.

Analysts Set New Price Targets

Several research firms have recently weighed in on QBTS. Rosenblatt Securities assumed coverage on D-Wave Quantum in a research note on Tuesday, July 29th. They issued a "buy" rating and a $30.00 price target for the company. B. Riley upped their price objective on D-Wave Quantum from $22.00 to $33.00 and gave the stock a "buy" rating in a research note on Monday. Cantor Fitzgerald assumed coverage on D-Wave Quantum in a research note on Wednesday, July 2nd. They set an "overweight" rating and a $20.00 price target for the company. Roth Capital reaffirmed a "buy" rating on shares of D-Wave Quantum in a research note on Friday, June 13th. Finally, Piper Sandler raised their price target on D-Wave Quantum from $13.00 to $22.00 and gave the stock an "overweight" rating in a research note on Friday, August 8th. Eleven investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the company currently has an average rating of "Buy" and a consensus price target of $20.27.

D-Wave Quantum Trading Up 3.1%

The company has a 50 day simple moving average of $17.59 and a 200 day simple moving average of $13.67. The company has a debt-to-equity ratio of 0.05, a quick ratio of 42.86 and a current ratio of 42.99. The company has a market capitalization of $9.05 billion, a PE ratio of -24.92 and a beta of 1.40.

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

Insider Activity

In other D-Wave Quantum news, Director John D. Dilullo sold 8,000 shares of the firm's stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $17.93, for a total transaction of $143,440.00. Following the transaction, the director owned 36,295 shares of the company's stock, valued at approximately $650,769.35. This trade represents a 18.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Rohit Ghai sold 10,000 shares of the firm's stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $17.93, for a total value of $179,300.00. Following the transaction, the director directly owned 47,778 shares in the company, valued at approximately $856,659.54. This represents a 17.31% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 168,000 shares of company stock worth $2,937,740. Corporate insiders own 3.20% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Osaic Holdings Inc. grew its stake in D-Wave Quantum by 125.7% in the 2nd quarter. Osaic Holdings Inc. now owns 247,004 shares of the company's stock worth $3,616,000 after acquiring an additional 137,549 shares during the period. Orion Porfolio Solutions LLC acquired a new position in D-Wave Quantum in the 2nd quarter worth $818,000. B. Riley Wealth Advisors Inc. acquired a new stake in shares of D-Wave Quantum in the 2nd quarter valued at about $203,000. Marex Group plc acquired a new stake in shares of D-Wave Quantum in the 2nd quarter valued at about $80,070,000. Finally, Advisory Services Network LLC bought a new stake in shares of D-Wave Quantum during the 2nd quarter valued at about $554,000. 42.47% of the stock is currently owned by institutional investors and hedge funds.

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.