D-Wave Quantum (NYSE:QBTS) Shares Up 20.3% - Here's What Happened

Key Points

• Shares jumped 20.3% on Friday, trading as high as $20.98 and finishing around $20.70 on roughly 38.6 million shares exchanged.
• Analysts hold a consensus of Moderate Buy (13 Buys, 1 Hold, 1 Sell) with an average price target of $38.21.
• The company reported revenue up 105.6% year-over-year but remains unprofitable (negative EPS and margins) with a $7.66 billion market cap, and insiders have sold about 2.35 million shares (~$65.6M) in the last three months.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s stock price traded up 20.3% on Friday . The company traded as high as $20.98 and last traded at $20.70. 38,640,845 shares were traded during mid-day trading, an increase of 2% from the average session volume of 37,831,422 shares. The stock had previously closed at $17.21.

Analyst Ratings Changes

A number of research analysts have commented on QBTS shares. Wall Street Zen upgraded shares of D-Wave Quantum from a "sell" rating to a "hold" rating in a research report on Saturday, January 10th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of D-Wave Quantum in a report on Monday, December 29th. Jefferies Financial Group initiated coverage on shares of D-Wave Quantum in a research report on Tuesday, December 16th. They issued a "buy" rating and a $45.00 target price on the stock. Mizuho began coverage on shares of D-Wave Quantum in a research report on Thursday, December 11th. They set an "outperform" rating and a $46.00 price target for the company. Finally, Benchmark reaffirmed a "buy" rating and set a $35.00 price objective on shares of D-Wave Quantum in a research note on Friday, January 23rd. Thirteen analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $38.21.

D-Wave Quantum Trading Up 20.3%

The company has a debt-to-equity ratio of 0.05, a current ratio of 54.68 and a quick ratio of 54.49. The firm's 50 day moving average price is $26.23 and its 200 day moving average price is $24.73. The stock has a market capitalization of $7.66 billion, a P/E ratio of -15.33 and a beta of 1.56.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings results on Thursday, November 6th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.07) by $0.02. D-Wave Quantum had a negative return on equity of 97.58% and a negative net margin of 1,651.81%.The company had revenue of $3.74 million for the quarter, compared to the consensus estimate of $3.03 million. The business's quarterly revenue was up 105.6% on a year-over-year basis. As a group, equities research analysts expect that D-Wave Quantum Inc. will post -0.41 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Rohit Ghai sold 10,000 shares of the stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $24.28, for a total value of $242,800.00. Following the completion of the transaction, the director owned 37,778 shares of the company's stock, valued at approximately $917,249.84. This represents a 20.93% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Kirstjen Nielsen sold 7,000 shares of the firm's stock in a transaction that occurred on Wednesday, December 3rd. The shares were sold at an average price of $22.62, for a total value of $158,340.00. Following the completion of the transaction, the director owned 112,673 shares of the company's stock, valued at approximately $2,548,663.26. The trade was a 5.85% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 2,346,916 shares of company stock valued at $65,591,314 over the last three months. Insiders own 3.20% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Axxcess Wealth Management LLC lifted its holdings in shares of D-Wave Quantum by 98.9% during the fourth quarter. Axxcess Wealth Management LLC now owns 59,138 shares of the company's stock valued at $1,546,000 after purchasing an additional 29,407 shares during the last quarter. Leonteq Securities AG purchased a new position in D-Wave Quantum in the fourth quarter worth about $831,000. Princeton Capital Management LLC grew its holdings in shares of D-Wave Quantum by 13.6% during the fourth quarter. Princeton Capital Management LLC now owns 13,415 shares of the company's stock valued at $351,000 after buying an additional 1,605 shares during the last quarter. IFP Advisors Inc grew its holdings in shares of D-Wave Quantum by 17.5% during the fourth quarter. IFP Advisors Inc now owns 7,956 shares of the company's stock valued at $208,000 after buying an additional 1,186 shares during the last quarter. Finally, Banque Cantonale Vaudoise bought a new stake in shares of D-Wave Quantum during the fourth quarter valued at approximately $689,000. 42.47% of the stock is currently owned by institutional investors.

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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