D-Wave Quantum (NYSE:QBTS) Shares Up 2.5% - Here's Why

Key Points

• Shares up 2.5% — QBTS traded as high as $28.84 mid-day and several firms raised targets (Jefferies $45, Evercore $44, B. Riley $33), leaving a consensus target of $33.67 and an overall rating of "Moderate Buy" (14 Buys, 1 Hold, 1 Sell).
• Insider selling notable — CFO John Markovich sold 100,000 shares at $30.03 and a director sold 10,000 shares, with insiders offloading 2,342,087 shares worth $66.07M over the past 90 days, leaving insiders owning 3.20% of the company.
• Mixed fundamentals — quarterly revenue jumped 105.6% YoY to $3.74M and EPS beat slightly ($-0.05 vs. -$0.07), but the company remains unprofitable with a -1,651.81% net margin and negative return on equity, and a market cap of $10.09B.

Shares of D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) shot up 2.5% during mid-day trading on Monday . The company traded as high as $28.84 and last traded at $28.8080. 31,828,024 shares changed hands during trading, a decline of 21% from the average session volume of 40,526,977 shares. The stock had previously closed at $28.11.

Analysts Set New Price Targets

QBTS has been the subject of several recent research reports. B. Riley upped their price objective on D-Wave Quantum from $22.00 to $33.00 and gave the stock a "buy" rating in a research report on Monday, September 22nd. Jefferies Financial Group assumed coverage on D-Wave Quantum in a research report on Tuesday, December 16th. They set a "buy" rating and a $45.00 price target for the company. Evercore ISI started coverage on shares of D-Wave Quantum in a report on Wednesday, December 3rd. They issued an "outperform" rating and a $44.00 price objective on the stock. Wedbush started coverage on shares of D-Wave Quantum in a report on Wednesday, December 17th. They set an "outperform" rating and a $35.00 target price for the company. Finally, Benchmark raised their target price on shares of D-Wave Quantum from $20.00 to $35.00 and gave the company a "buy" rating in a research report on Monday, November 10th. Fourteen investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, D-Wave Quantum presently has an average rating of "Moderate Buy" and a consensus target price of $33.67.

D-Wave Quantum Trading Up 2.5%

The business's 50 day simple moving average is $26.25 and its 200 day simple moving average is $23.75. The stock has a market cap of $10.09 billion, a price-to-earnings ratio of -21.34 and a beta of 1.57. The company has a quick ratio of 54.49, a current ratio of 54.68 and a debt-to-equity ratio of 0.05.

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

Insider Transactions at D-Wave Quantum

In other news, CFO John M. Markovich sold 100,000 shares of the firm's stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $30.03, for a total value of $3,003,000.00. Following the completion of the sale, the chief financial officer directly owned 1,471,312 shares of the company's stock, valued at $44,183,499.36. This trade represents a 6.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Rohit Ghai sold 10,000 shares of D-Wave Quantum 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 transaction, the director owned 37,778 shares of the company's stock, valued at $917,249.84. This represents a 20.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 2,342,087 shares of company stock valued at $66,073,024. Company insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On D-Wave Quantum

Institutional investors and hedge funds have recently modified their holdings of the stock. Osaic Holdings Inc. grew its position in D-Wave Quantum by 125.7% in the second quarter. Osaic Holdings Inc. now owns 247,004 shares of the company's stock valued at $3,616,000 after acquiring an additional 137,549 shares during the last quarter. IFP Advisors Inc boosted its stake in shares of D-Wave Quantum by 123.8% in the 2nd quarter. IFP Advisors Inc now owns 14,814 shares of the company's stock valued at $217,000 after purchasing an additional 8,194 shares in the last quarter. UNICOM Systems Inc. boosted its stake in shares of D-Wave Quantum by 12.1% in the 3rd quarter. UNICOM Systems Inc. now owns 3,121,346 shares of the company's stock valued at $77,128,000 after purchasing an additional 337,838 shares in the last quarter. World Investment Advisors bought a new stake in shares of D-Wave Quantum during the 2nd quarter valued at approximately $190,000. Finally, Farther Finance Advisors LLC increased its position in D-Wave Quantum by 491.3% during the 2nd 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 in the last quarter. 42.47% of the stock is currently owned by institutional investors and hedge funds.

D-Wave Quantum Company Profile

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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