D-Wave Quantum (NYSE:QBTS) Shares Up 1.8% - Here's What Happened

Key Points

• D-Wave Quantum shares rose 1.8% on Tuesday, trading as high as $19.25 with about 15.6 million shares changing hands, below its average volume.
• Analyst sentiment remains broadly positive, with 14 Buy ratings and a consensus “Moderate Buy” rating; the average price target is $36.80, well above the current share price.
• Recent earnings were mixed: the company beat EPS expectations for the quarter, but revenue came in below estimates and fell 80.9% year over year, while insiders also sold significant shares in recent months.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) shot up 1.8% during trading on Tuesday . The company traded as high as $19.25 and last traded at $19.0010. 15,603,857 shares changed hands during trading, a decline of 50% from the average session volume of 31,177,916 shares. The stock had previously closed at $18.66.

Analyst Ratings Changes

Several research firms recently weighed in on QBTS. Rosenblatt Securities restated a "buy" rating and set a $43.00 price target on shares of D-Wave Quantum in a research report on Thursday, June 11th. Needham & Company LLC reaffirmed a "buy" rating and issued a $40.00 price objective on shares of D-Wave Quantum in a research report on Tuesday, June 2nd. Northland Securities assumed coverage on shares of D-Wave Quantum in a research note on Monday, April 20th. They issued a "market perform" rating and a $22.00 target price on the stock. Canaccord Genuity Group reduced their target price on shares of D-Wave Quantum from $43.00 to $41.00 and set a "buy" rating for the company in a research report on Wednesday, May 13th. Finally, Weiss Ratings upgraded shares of D-Wave Quantum from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday, June 23rd. Fourteen research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $36.80.

D-Wave Quantum Trading Up 1.8%

The firm has a fifty day moving average of $23.88 and a two-hundred day moving average of $21.85. The company has a market cap of $7.03 billion, a PE ratio of -16.82 and a beta of 2.11. The company has a current ratio of 21.41, a quick ratio of 21.31 and a debt-to-equity ratio of 0.03.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last released its quarterly earnings data on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, beating the consensus estimate of ($0.08) by $0.03. The business had revenue of $2.86 million for the quarter, compared to the consensus estimate of $4.19 million. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The company's revenue was down 80.9% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.02) earnings per share. As a group, sell-side analysts predict that D-Wave Quantum Inc. will post -0.43 EPS for the current year.

Insider Activity at D-Wave Quantum

In related news, Director John D. Dilullo sold 7,850 shares of the firm's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $24.43, for a total value of $191,775.50. Following the completion of the transaction, the director directly owned 21,310 shares of the company's stock, valued at approximately $520,603.30. This trade represents a 26.92% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Markovich sold 200,000 shares of D-Wave Quantum stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $25.71, for a total transaction of $5,142,000.00. Following the completion of the transaction, the chief financial officer owned 1,142,820 shares of the company's stock, valued at $29,381,902.20. This represents a 14.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 1,363,842 shares of company stock worth $35,802,656 in the last ninety days. Insiders own 1.30% of the company's stock.

Institutional Investors Weigh In On D-Wave Quantum

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Root Financial Partners LLC grew its position in D-Wave Quantum by 388.0% during the fourth quarter. Root Financial Partners LLC now owns 976 shares of the company's stock worth $26,000 after buying an additional 776 shares in the last quarter. Kemnay Advisory Services Inc. bought a new position in shares of D-Wave Quantum in the fourth quarter worth approximately $28,000. EverSource Wealth Advisors LLC raised its stake in D-Wave Quantum by 267.7% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company's stock valued at $30,000 after purchasing an additional 838 shares in the last quarter. Mcguire Capital Advisors Inc. bought a new stake in D-Wave Quantum during the fourth quarter valued at approximately $31,000. Finally, Ancora Advisors LLC purchased a new position in D-Wave Quantum in the 3rd quarter worth approximately $30,000. 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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