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

Key Points

• D-Wave Quantum Inc. shares experienced a significant increase, opening at $46.40 after a previous close of $43.06, reflecting a strong market interest.
• Analysts have mixed views on the company's stock, with a consensus rating of "Moderate Buy" and a target price of $20.27, while brokerage reports have varying price objectives ranging from $20.00 to $33.00.
• Despite a revenue increase of 40.9% year-over-year to $3.10 million, the company reported a loss, missing earnings estimates with a reported EPS of ($0.08).

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) gapped up prior to trading on Wednesday . The stock had previously closed at $43.06, but opened at $46.40. D-Wave Quantum shares last traded at $44.70, with a volume of 14,149,231 shares.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on QBTS. Williams Trading set a $20.00 price objective on D-Wave Quantum in a report on Wednesday, June 18th. 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 report on Monday, September 22nd. Zacks Research cut D-Wave Quantum from a "hold" rating to a "strong sell" rating in a report on Monday, October 6th. Stifel Nicolaus began coverage on D-Wave Quantum in a report on Tuesday, August 5th. They set a "buy" rating and a $26.00 price objective on the stock. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of D-Wave Quantum in a report on Tuesday. Eleven analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company. Based on data from MarketBeat, D-Wave Quantum presently has a consensus rating of "Moderate Buy" and a consensus target price of $20.27.

D-Wave Quantum Stock Down 0.4%

The company has a current ratio of 42.99, a quick ratio of 42.86 and a debt-to-equity ratio of 0.05. The company has a 50-day simple moving average of $21.88 and a 200 day simple moving average of $16.20. The company has a market cap of $14.66 billion, a P/E ratio of -40.76 and a beta of 1.49.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported ($0.08) earnings per share for the quarter, missing analysts' consensus estimates 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 business had revenue of $3.10 million during the quarter, compared to analysts' expectations of $2.55 million. The company's revenue for the quarter was up 40.9% compared to the same quarter last year. On average, equities analysts anticipate that D-Wave Quantum Inc. will post -0.41 EPS for the current year.

Insiders Place Their Bets

In other news, Director Rohit Ghai sold 10,000 shares of the firm's stock in a transaction on Monday, September 15th. The stock was sold at an average price of $17.93, for a total transaction of $179,300.00. Following the transaction, the director owned 47,778 shares in the company, valued at approximately $856,659.54. This trade represents a 17.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO John M. Markovich sold 50,000 shares of the firm's stock in a transaction on Thursday, September 11th. The shares were sold at an average price of $16.30, for a total value of $815,000.00. Following the transaction, the chief financial officer owned 1,599,511 shares in the company, valued at approximately $26,072,029.30. This represents a 3.03% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 168,000 shares of company stock worth $2,937,740 over the last quarter. Company insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On D-Wave Quantum

Institutional investors have recently made changes to their positions in the company. Vontobel Holding Ltd. increased its stake in shares of D-Wave Quantum by 786.8% during the first quarter. Vontobel Holding Ltd. now owns 110,850 shares of the company's stock valued at $842,000 after buying an additional 98,350 shares during the period. Farther Finance Advisors LLC increased its stake in shares of D-Wave Quantum by 491.3% during the second quarter. Farther Finance Advisors LLC now owns 16,321 shares of the company's stock valued at $239,000 after buying an additional 13,561 shares during the period. Kingswood Wealth Advisors LLC bought a new stake in D-Wave Quantum during the first quarter valued at about $167,000. Bouvel Investment Partners LLC bought a new stake in D-Wave Quantum during the second quarter valued at about $2,145,000. Finally, Voya Investment Management LLC boosted its position in D-Wave Quantum by 69.3% during the first quarter. Voya Investment Management LLC now owns 48,924 shares of the company's stock valued at $372,000 after purchasing an additional 20,022 shares in the last quarter. Hedge funds and other institutional investors own 42.47% of the company's stock.

D-Wave Quantum Company Profile

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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