D-Wave Quantum (NYSE:QBTS) Shares Gap Up - Time to Buy?

Key Points

• QBTS gapped up sharply before Thursday’s trading, opening at $21.76 after a $19.30 close and later trading around $24.47 on heavy volume of 29.1 million shares.
• D-Wave’s biggest catalyst is a Letter of Intent with the U.S. Department of Commerce for up to $100 million in proposed CHIPS Act funding, which could help accelerate development and scaling.
• Despite the rally and upbeat analyst sentiment, the company’s fundamentals remain mixed: it beat EPS estimates last quarter but missed revenue expectations, and it still reported steep revenue decline and continued losses.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s stock price gapped up prior to trading on Thursday . The stock had previously closed at $19.30, but opened at $21.76. D-Wave Quantum shares last traded at $24.4680, with a volume of 29,091,885 shares trading hands.

Trending Headlines about D-Wave Quantum

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

• Positive Sentiment: D-Wave signed a Letter of Intent with the U.S. Department of Commerce for up to $100 million in proposed CHIPS and Science Act funding, a potential catalyst that could support product development, scaling, and longer-term revenue growth. Article Title
• Positive Sentiment: Quantum-computing stocks are broadly breaking out, with QBTS among the leaders, as investors rotate into the sector despite weakness in other tech names. Article Title
• Positive Sentiment: Unusually heavy call-option buying suggests traders are positioning for more upside in QBTS, reinforcing the stock’s momentum. Article Title
• Positive Sentiment: Analyst commentary continues to highlight QBTS as a momentum name in quantum computing, with some recent coverage pointing to significant potential upside if adoption continues. Article Title
• Neutral Sentiment: Recent articles also note that D-Wave has been posting strong revenue growth and record bookings, but profitability remains limited, which keeps longer-term fundamentals mixed. Article Title

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the company. Mizuho reduced their target price on D-Wave Quantum from $31.00 to $29.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 13th. Needham & Company LLC restated a "buy" rating and issued a $40.00 target price on shares of D-Wave Quantum in a research report on Wednesday, May 13th. Weiss Ratings downgraded D-Wave Quantum from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Wednesday, April 29th. Canaccord Genuity Group reduced their target price on D-Wave Quantum from $43.00 to $41.00 and set a "buy" rating on the stock in a research report on Wednesday, May 13th. Finally, Roth Mkm reduced their target price on D-Wave Quantum from $40.00 to $30.00 and set a "buy" rating on the stock in a research report on Friday, February 27th. Fourteen investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $34.67.

D-Wave Quantum Price Performance

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 stock has a market cap of $8.92 billion, a PE ratio of -21.46 and a beta of 1.95. The company has a fifty day moving average of $18.06 and a 200-day moving average of $22.24.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last posted its quarterly earnings data on Tuesday, May 12th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.08) by $0.03. The firm had revenue of $2.86 million for the quarter, compared to the consensus estimate of $4.19 million. D-Wave Quantum had a negative return on equity of 44.06% and a negative net margin of 2,957.23%.The company's quarterly revenue was down 80.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.02) EPS. Sell-side analysts expect that D-Wave Quantum Inc. will post -0.44 EPS for the current fiscal year.

Insider Buying and Selling

In other D-Wave Quantum news, CFO John M. Markovich sold 10,706 shares of the company's stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $17.63, for a total transaction of $188,746.78. Following the sale, the chief financial officer owned 1,451,427 shares in the company, valued at $25,588,658.01. This represents a 0.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director John D. Dilullo sold 8,000 shares of the company's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $18.01, for a total value of $144,080.00. Following the sale, the director owned 19,803 shares in the company, valued at approximately $356,652.03. This trade represents a 28.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 31,776 shares of company stock worth $574,571 in the last quarter. Company insiders own 3.20% of the company's stock.

Institutional Investors Weigh In On D-Wave Quantum

Several large investors have recently bought and sold shares of QBTS. Root Financial Partners LLC increased its holdings in D-Wave Quantum by 388.0% during the 4th quarter. Root Financial Partners LLC now owns 976 shares of the company's stock worth $26,000 after purchasing an additional 776 shares during the period. Parallel Advisors LLC increased its holdings 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 purchasing an additional 1,511 shares during the period. Kemnay Advisory Services Inc. purchased a new stake in D-Wave Quantum during the 4th quarter worth about $28,000. PeakShares LLC purchased a new stake in D-Wave Quantum during the 1st quarter worth about $29,000. Finally, EverSource Wealth Advisors LLC increased its holdings 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 purchasing an additional 838 shares during the period. Hedge funds and other institutional investors own 42.47% of the company's stock.

About D-Wave Quantum

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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