D-Wave Quantum (NYSE:QBTS) Shares Up 2.3% - Still a Buy?

Key Points

• Shares rose about 2.3% to roughly $20.95 on Monday with volume ~17% below average; the stock sits above its 50‑day moving average ($17.44) but below its 200‑day ($23.37).
• Wall Street sentiment is broadly positive with a consensus rating of "Moderate Buy" (14 Buys, 2 Holds, 1 Sell) and a consensus price target of $35.53, though individual targets range as high as $43.00.
• Fundamentals show mixed results: the latest quarter missed estimates (EPS -$0.09 vs. -$0.05; revenue $2.75M vs. $3.74M), while revenue grew 21.7% YoY and the company reports large negative margins and ROE despite a market cap of about $7.75 billion.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price shot up 2.3% during mid-day trading on Monday . The company traded as high as $21.72 and last traded at $20.9520. 24,669,797 shares changed hands during mid-day trading, a decline of 17% from the average session volume of 29,644,623 shares. The stock had previously closed at $20.49.

Wall Street Analysts Forecast Growth

QBTS has been the topic of a number of research reports. Northland Securities initiated 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 price target on the stock. Weiss Ratings lowered shares of D-Wave Quantum from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Wednesday. TD Cowen initiated coverage on shares of D-Wave Quantum in a research note on Thursday, February 12th. They issued a "buy" rating on the stock. Rosenblatt Securities reaffirmed a "buy" rating and issued a $43.00 price target on shares of D-Wave Quantum in a research note on Wednesday, January 28th. Finally, Needham & Company LLC decreased their price target on shares of D-Wave Quantum from $48.00 to $40.00 and set a "buy" rating on the stock in a research note on Thursday, February 26th. Fourteen investment 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. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $35.53.

D-Wave Quantum Stock Performance

The company has a debt-to-equity ratio of 0.04, a quick ratio of 42.25 and a current ratio of 42.38. The firm's 50 day simple moving average is $17.44 and its 200-day simple moving average is $23.37. The company has a market cap of $7.75 billion, a price-to-earnings ratio of -19.05 and a beta of 1.95.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last released its earnings results on Thursday, February 26th. The company reported ($0.09) earnings per share for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.04). D-Wave Quantum had a negative return on equity of 58.58% and a negative net margin of 1,444.10%.The business had revenue of $2.75 million during the quarter, compared to analysts' expectations of $3.74 million. D-Wave Quantum's revenue for the quarter was up 21.7% on a year-over-year basis. On average, sell-side analysts predict that D-Wave Quantum Inc. will post -0.44 EPS for the current year.

Insider Buying and Selling at D-Wave Quantum

In other D-Wave Quantum news, Director Rohit Ghai sold 10,000 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $17.62, for a total value of $176,200.00. Following the transaction, the director directly owned 27,778 shares of the company's stock, valued at $489,448.36. This trade represents a 26.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director John D. Dilullo sold 8,000 shares of the firm's stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $18.01, for a total transaction of $144,080.00. Following the completion of the transaction, the director directly owned 19,803 shares in the company, valued at $356,652.03. This trade represents a 28.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 31,776 shares of company stock valued at $574,571. Company insiders own 3.20% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of QBTS. Baird Financial Group Inc. raised its holdings in shares of D-Wave Quantum by 12.0% during the 1st quarter. Baird Financial Group Inc. now owns 12,135 shares of the company's stock worth $92,000 after acquiring an additional 1,300 shares during the period. Royal Bank of Canada raised its holdings in shares of D-Wave Quantum by 59.8% during the 1st quarter. Royal Bank of Canada now owns 162,088 shares of the company's stock worth $1,231,000 after acquiring an additional 60,668 shares during the period. AQR Capital Management LLC raised its holdings in shares of D-Wave Quantum by 201.0% during the 1st quarter. AQR Capital Management LLC now owns 200,765 shares of the company's stock worth $1,526,000 after acquiring an additional 134,066 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of D-Wave Quantum by 93.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,572 shares of the company's stock valued at $825,000 after buying an additional 52,437 shares during the period. Finally, NewEdge Advisors LLC raised its position in shares of D-Wave Quantum by 125.7% during the 1st quarter. NewEdge Advisors LLC now owns 43,786 shares of the company's stock valued at $333,000 after buying an additional 24,382 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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