D-Wave Quantum (NYSE:QBTS) Shares Up 23.3% - Here's Why

Key Points

• D-Wave Quantum Inc. shares surged by 23.3%, closing at $40.71, significantly higher than the previous close of $33.02.
• Research firm Zacks Research downgraded the stock to a "strong sell," while others have set target prices ranging between $20.00 and $26.00.
• The company's quarterly earnings report indicated a revenue of $3.10 million, surpassing expectations, despite missing EPS estimates.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price shot up 23.3% on Monday . The company traded as high as $41.97 and last traded at $40.71. 88,334,425 shares changed hands during trading, an increase of 36% from the average session volume of 65,191,141 shares. The stock had previously closed at $33.02.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on QBTS. Zacks Research lowered shares of D-Wave Quantum from a "hold" rating to a "strong sell" rating in a report on Monday, October 6th. Stifel Nicolaus began coverage on shares of D-Wave Quantum in a report on Tuesday, August 5th. They set a "buy" rating and a $26.00 target price on the stock. Piper Sandler upped their target price on shares of D-Wave Quantum from $13.00 to $22.00 and gave the stock an "overweight" rating in a report on Friday, August 8th. Wall Street Zen lowered shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Finally, Williams Trading set a $20.00 target price on shares of D-Wave Quantum in a report on Wednesday, June 18th. Eleven investment analysts have rated the stock with a Buy rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $20.27.

D-Wave Quantum Stock Up 23.3%

The stock's fifty day moving average price is $20.91 and its 200 day moving average price is $15.78. The stock has a market cap of $13.92 billion, a P/E ratio of -38.77 and a beta of 1.49. The company has a current ratio of 42.99, a quick ratio of 42.86 and a debt-to-equity ratio of 0.05.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings data 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 net margin of 1,263.92% and a negative return on equity of 118.87%. The business had revenue of $3.10 million during the quarter, compared to analysts' expectations of $2.55 million. The firm's revenue for the quarter was up 40.9% on a year-over-year basis. As a group, research analysts forecast that D-Wave Quantum Inc. will post -0.41 earnings per share for the current fiscal year.

Insider Activity

In other news, Director John D. Dilullo sold 8,000 shares of the company's stock in a transaction on Monday, September 15th. The shares were sold at an average price of $17.93, for a total value of $143,440.00. Following the completion of the sale, the director owned 36,295 shares of the company's stock, valued at approximately $650,769.35. This represents a 18.06% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO John M. Markovich sold 50,000 shares of the company's stock in a transaction on Thursday, September 11th. The shares were sold at an average price of $16.30, for a total transaction of $815,000.00. Following the completion of the sale, the chief financial officer directly owned 1,599,511 shares of the company's stock, valued at $26,072,029.30. This trade represents a 3.03% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 168,000 shares of company stock valued at $2,937,740. Corporate insiders own 3.20% of the company's stock.

Institutional Trading of D-Wave Quantum

Institutional investors have recently modified their holdings of the company. Vontobel Holding Ltd. boosted its holdings in shares of D-Wave Quantum by 786.8% during the first quarter. Vontobel Holding Ltd. now owns 110,850 shares of the company's stock worth $842,000 after purchasing an additional 98,350 shares during the period. Farther Finance Advisors LLC boosted its holdings in shares of D-Wave Quantum by 491.3% during the second quarter. Farther Finance Advisors LLC now owns 16,321 shares of the company's stock worth $239,000 after purchasing an additional 13,561 shares during the period. Kingswood Wealth Advisors LLC purchased a new stake in shares of D-Wave Quantum during the first quarter worth about $167,000. Bouvel Investment Partners LLC purchased a new stake in shares of D-Wave Quantum during the second quarter worth about $2,145,000. Finally, Voya Investment Management LLC boosted its holdings in shares of D-Wave Quantum by 69.3% during the first quarter. Voya Investment Management LLC now owns 48,924 shares of the company's stock worth $372,000 after purchasing an additional 20,022 shares during the period. 42.47% of the stock is currently owned by hedge funds and other institutional investors.

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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