D-Wave Quantum (NYSE:QBTS) Shares Up 2.9% - Should You Buy?

Key Points

• D-Wave Quantum Inc. (NYSE:QBTS) saw its shares increase by 2.9%, reaching a last trading price of $16.86 after experiencing a significant drop in trading volume.
• Analysts are optimistic about D-Wave, with multiple firms maintaining a "buy" rating and price targets ranging from $20.00 to $30.00.
• Insider trading activities revealed substantial sales, with the CFO and a director reducing their shares significantly, indicating possible concerns among company insiders.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price shot up 2.9% during mid-day trading on Monday . The stock traded as high as $17.42 and last traded at $16.86. 13,261,043 shares were traded during mid-day trading, a decline of 81% from the average session volume of 69,600,711 shares. The stock had previously closed at $16.38.

Analyst Upgrades and Downgrades

QBTS has been the topic of a number of recent research reports. B. Riley lifted their target price on D-Wave Quantum from $20.00 to $22.00 and gave the company a "buy" rating in a research report on Wednesday, July 23rd. Rosenblatt Securities began coverage on D-Wave Quantum in a research note on Tuesday, July 29th. They issued a "buy" rating and a $30.00 price target for the company. Canaccord Genuity Group began coverage on D-Wave Quantum in a research note on Wednesday, July 23rd. They issued a "buy" rating and a $20.00 price target for the company. Williams Trading set a $20.00 target price on D-Wave Quantum in a research report on Wednesday, June 18th. Finally, Stifel Nicolaus started coverage on D-Wave Quantum in a research report on Tuesday. They set a "buy" rating and a $26.00 price objective for the company. Eleven equities research analysts have rated the stock with a buy rating, According to data from MarketBeat.com, the company currently has an average rating of "Buy" and an average target price of $17.55.

D-Wave Quantum Stock Up 4.6%

The company has a debt-to-equity ratio of 0.15, a current ratio of 20.73 and a quick ratio of 20.61. The firm's 50 day moving average is $16.66 and its two-hundred day moving average is $10.85. The firm has a market capitalization of $5.25 billion, a P/E ratio of -29.92 and a beta of 1.41.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last posted its quarterly earnings results on Thursday, May 8th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.05) by $0.03. The firm had revenue of $15.00 million for the quarter, compared to analysts' expectations of $10.50 million. D-Wave Quantum had a negative return on equity of 227.95% and a negative net margin of 617.84%. Research analysts predict that D-Wave Quantum Inc. will post -0.41 EPS for the current year.

Insider Activity

In related news, Director Rohit Ghai sold 43,517 shares of the business's stock in a transaction that occurred on Thursday, June 12th. The stock was sold at an average price of $16.80, for a total value of $731,085.60. Following the transaction, the director directly owned 57,778 shares of the company's stock, valued at approximately $970,670.40. The trade was a 42.96% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Alan E. Baratz sold 845,813 shares of D-Wave Quantum stock in a transaction on Wednesday, May 21st. The stock was sold at an average price of $17.00, for a total transaction of $14,378,821.00. Following the transaction, the chief executive officer directly owned 2,866,412 shares of the company's stock, valued at $48,729,004. The trade was a 22.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,636,796 shares of company stock valued at $27,872,091. 3.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On D-Wave Quantum

Large investors have recently modified their holdings of the stock. Fourth Dimension Wealth LLC acquired a new stake in shares of D-Wave Quantum during the fourth quarter worth $26,000. Reyes Financial Architecture Inc. bought a new position in D-Wave Quantum in the 2nd quarter valued at $29,000. Parallel Advisors LLC boosted its position in shares of D-Wave Quantum by 227.3% in the 2nd quarter. Parallel Advisors LLC now owns 2,206 shares of the company's stock worth $32,000 after purchasing an additional 1,532 shares during the last quarter. Gables Capital Management Inc. acquired a new stake in D-Wave Quantum during the 2nd quarter worth $37,000. Finally, Russell Investments Group Ltd. raised its stake in shares of D-Wave Quantum by 133.9% in the 1st quarter. Russell Investments Group Ltd. now owns 5,528 shares of the company's stock valued at $42,000 after purchasing an additional 3,165 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 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.