D-Wave Quantum (NYSE:QBTS) Shares Gap Up - Still a Buy?

Key Points

• D-Wave Quantum Inc. shares gapped up significantly, opening at $32.60 after a previous close of $27.29, with a trading volume of 29.8 million shares.
• Analysts have mixed ratings on the stock, with a consensus of "Moderate Buy" and a average target price of $20.27 following several upgrades and downgrades.
• Insider trading activity has seen notable sales, including CFO John M. Markovich selling 100,000 shares for $1.8 million, representing a decrease in his ownership by 6.03%.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) gapped up prior to trading on Thursday . The stock had previously closed at $27.29, but opened at $32.60. D-Wave Quantum shares last traded at $32.66, with a volume of 29,802,860 shares trading hands.

Wall Street Analyst Weigh In

QBTS has been the topic of a number of analyst reports. Piper Sandler upped their target price on shares of D-Wave Quantum from $13.00 to $22.00 and gave the company an "overweight" rating in a research note on Friday, August 8th. Cantor Fitzgerald began coverage on shares of D-Wave Quantum in a research note on Wednesday, July 2nd. They issued an "overweight" rating and a $20.00 target price on the stock. Weiss Ratings restated a "sell (e+)" rating on shares of D-Wave Quantum in a research report on Tuesday, October 14th. Wall Street Zen lowered shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Finally, Canaccord Genuity Group began coverage on shares of D-Wave Quantum in a research report on Wednesday, July 23rd. They issued a "buy" rating and a $20.00 price target on the stock. Eleven equities research analysts have rated the stock with a Buy rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $20.27.

D-Wave Quantum Stock Performance

The stock has a market capitalization of $11.38 billion, a price-to-earnings ratio of -31.42 and a beta of 1.49. The company has a quick ratio of 42.86, a current ratio of 42.99 and a debt-to-equity ratio of 0.05. The stock's 50-day simple moving average is $24.10 and its 200 day simple moving average is $17.34.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported ($0.08) earnings per share (EPS) 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 company had revenue of $3.10 million for the quarter, compared to analyst estimates of $2.55 million. The company's revenue for the quarter was up 40.9% compared to the same quarter last year. Analysts expect that D-Wave Quantum Inc. will post -0.41 earnings per share for the current fiscal year.

Insider Activity at D-Wave Quantum

In other news, CFO John M. Markovich sold 100,000 shares of the company's 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 transaction, the chief financial officer directly owned 1,558,753 shares in the company, valued at approximately $28,057,554. This represents a 6.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Rohit Ghai sold 10,000 shares of the company's stock in a transaction that occurred 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 $856,659.54. The trade was a 17.31% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 207,363 shares of company stock valued at $4,659,478 over the last ninety days. Company insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On D-Wave Quantum

A number of large investors have recently modified their holdings of QBTS. Reyes Financial Architecture Inc. acquired a new position in shares of D-Wave Quantum during the second quarter worth approximately $29,000. Atlantic Union Bankshares Corp acquired a new position in D-Wave Quantum in the second quarter valued at approximately $29,000. Financial Consulate Inc. acquired a new position in D-Wave Quantum in the third quarter valued at approximately $31,000. Parallel Advisors LLC lifted its holdings in D-Wave Quantum by 227.3% in the second quarter. Parallel Advisors LLC now owns 2,206 shares of the company's stock valued at $32,000 after buying an additional 1,532 shares during the period. Finally, Gables Capital Management Inc. acquired a new position in D-Wave Quantum in the second quarter valued at approximately $37,000. 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.

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