D-Wave Quantum (NYSE:QBTS) Shares Up 5.1% - Still a Buy?

Key Points

• D-Wave Quantum's shares increased by 5.1% during mid-day trading, reaching a high of $35.19 before ending at $32.64, with trading volume at 67,275,674 shares.
• Analyst ratings vary, with Zacks Research lowering its rating to "strong sell," while Canaccord Genuity and Benchmark both issued "buy" ratings, suggesting a mixed sentiment among investment firms.
• The company reported a quarterly earnings miss with negative EPS of ($0.08) against an expectation of ($0.05), but revenue grew by 40.9% year-over-year.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) shares shot up 5.1% during mid-day trading on Friday . The company traded as high as $35.19 and last traded at $32.64. 67,275,674 shares changed hands during mid-day trading, an increase of 3% from the average session volume of 65,251,750 shares. The stock had previously closed at $31.06.

Analyst Ratings Changes

A number of brokerages recently issued reports on QBTS. Zacks Research lowered shares of D-Wave Quantum from a "hold" rating to a "strong sell" rating in a research report on Monday, October 6th. Canaccord Genuity Group began coverage on shares of D-Wave Quantum in a research report on Wednesday, July 23rd. They issued a "buy" rating and a $20.00 target price for the company. Weiss Ratings reiterated a "sell (e+)" rating on shares of D-Wave Quantum in a research report on Tuesday, October 14th. Benchmark reiterated a "buy" rating and issued a $20.00 target price on shares of D-Wave Quantum in a research report on Monday, August 4th. Finally, Stifel Nicolaus began coverage on shares of D-Wave Quantum in a research report on Tuesday, August 5th. They issued a "buy" rating and a $26.00 target price for the company. Eleven investment analysts have rated the stock with a Buy rating and two have given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $20.27.

D-Wave Quantum Stock Performance

The company has a current ratio of 42.99, a quick ratio of 42.86 and a debt-to-equity ratio of 0.05. The company's 50-day moving average price is $24.36 and its two-hundred day moving average price is $17.51. The company has a market cap of $11.16 billion, a P/E ratio of -31.08 and a beta of 1.49.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The company reported ($0.08) earnings per share for the quarter, missing the consensus estimate 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 for the quarter, compared to the consensus estimate of $2.55 million. The business's revenue for the quarter was up 40.9% on a year-over-year basis. As a group, equities analysts forecast that D-Wave Quantum Inc. will post -0.41 earnings per share for the current year.

Insider Buying and Selling at D-Wave Quantum

In other D-Wave Quantum news, CFO John M. Markovich sold 100,000 shares of the firm's stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $18.00, for a total value of $1,800,000.00. Following the completion of the transaction, the chief financial officer directly owned 1,558,753 shares in the company, valued at $28,057,554. This trade represents a 6.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director John D. Dilullo sold 8,000 shares of the firm's stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $17.93, for a total transaction of $143,440.00. Following the completion of the transaction, the director owned 36,295 shares of the company's stock, valued at approximately $650,769.35. The trade was a 18.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 207,363 shares of company stock worth $4,659,478. Company insiders own 3.20% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Vontobel Holding Ltd. boosted its holdings in shares of D-Wave Quantum by 786.8% in the first quarter. Vontobel Holding Ltd. now owns 110,850 shares of the company's stock worth $842,000 after buying an additional 98,350 shares during the period. IFP Advisors Inc boosted its holdings in shares of D-Wave Quantum by 123.8% in the second quarter. IFP Advisors Inc now owns 14,814 shares of the company's stock worth $217,000 after buying an additional 8,194 shares during the period. Farther Finance Advisors LLC boosted its holdings in shares of D-Wave Quantum by 491.3% in the second quarter. Farther Finance Advisors LLC now owns 16,321 shares of the company's stock worth $239,000 after buying an additional 13,561 shares during the period. Bouvel Investment Partners LLC acquired a new position in shares of D-Wave Quantum in 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% in the first quarter. Voya Investment Management LLC now owns 48,924 shares of the company's stock worth $372,000 after buying an additional 20,022 shares during the period. 42.47% of the stock is currently owned by institutional investors and hedge funds.

D-Wave Quantum Company Profile

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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