D-Wave Quantum (NYSE:QBTS) Shares Up 7.6% - Should You Buy?

Key Points

• D-Wave Quantum shares rose 7.6% on the day, with the stock trading as high as $24.71 amid heavy volume that was slightly below its recent average.
• The company’s recent catalyst was a new gate-model quantum computing simulator and reports of up to $100 million in CHIPS Act-related backing, both of which support its long-term commercialization story.
• Sentiment is still mixed: analysts largely remain bullish with a Moderate Buy rating and a $36.80 average target, but the company continues to face questions about valuation, competition, and insider selling.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) traded up 7.6% on Thursday . The company traded as high as $24.71 and last traded at $24.6530. 30,852,368 shares changed hands during mid-day trading, a decline of 5% from the average daily volume of 32,335,277 shares. The stock had previously closed at $22.92.

Key D-Wave Quantum News

Here are the key news stories impacting D-Wave Quantum this week:

• Positive Sentiment: D-Wave announced a forthcoming gate-model quantum computing simulator designed for error-aware programming, reinforcing its technology lead and supporting the commercial growth story. Article Title
• Positive Sentiment: Reports that D-Wave secured up to $100 million in CHIPS Act-related backing and laid out a 100 logical qubit roadmap by 2032 suggest meaningful federal support for its R&D and long-term platform expansion. Article Title
• Positive Sentiment: Market commentary says the new simulator and roadmap could help D-Wave sharpen its commercialization push and improve investor confidence in the company’s quantum strategy. Article Title
• Neutral Sentiment: Analyst and media coverage comparing QBTS to a “NVIDIA of quantum computing” highlights upside potential, but also underscores that the stock’s valuation is already pricing in strong future execution. Article Title
• Neutral Sentiment: Some analysis continues to question how D-Wave stacks up against larger quantum rivals, keeping attention on competitive positioning rather than immediate financial results. Article Title
• Negative Sentiment: Recent insider sales by CFO John M. Markovich and Director Rohit Ghai may weigh on sentiment, even though both were described as tax-related or part of a 10b5-1 plan. Article Title

Analyst Ratings Changes

A number of equities analysts have commented on the stock. B. Riley Financial lifted their price objective on shares of D-Wave Quantum from $36.00 to $40.00 and gave the stock a "buy" rating in a report on Tuesday, June 2nd. Roth Mkm raised their price target on shares of D-Wave Quantum from $30.00 to $40.00 and gave the stock a "buy" rating in a research report on Tuesday, June 2nd. Stifel Nicolaus set a $35.00 price target on shares of D-Wave Quantum in a report on Tuesday, June 2nd. Weiss Ratings downgraded shares of D-Wave Quantum from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Wednesday, April 29th. Finally, Jefferies Financial Group reiterated a "buy" rating on shares of D-Wave Quantum in a research note on Tuesday, May 12th. Fourteen investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, D-Wave Quantum currently has an average rating of "Moderate Buy" and an average price target of $36.80.

D-Wave Quantum Price Performance

The company has a market capitalization of $9.12 billion, a P/E ratio of -21.82 and a beta of 2.05. The company has a quick ratio of 21.31, a current ratio of 21.41 and a debt-to-equity ratio of 0.03. The business has a 50 day simple moving average of $22.31 and a 200-day simple moving average of $22.31.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last released its quarterly earnings results on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, topping the consensus estimate of ($0.08) by $0.03. The business had revenue of $2.86 million during the quarter, compared to analyst estimates of $4.19 million. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The company's quarterly revenue was down 80.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.02) earnings per share. Analysts predict that D-Wave Quantum Inc. will post -0.43 EPS for the current fiscal year.

Insider Transactions at D-Wave Quantum

In other news, CFO John M. Markovich sold 328,752 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $27.70, for a total transaction of $9,106,430.40. Following the completion of the transaction, the chief financial officer directly owned 1,442,820 shares in the company, valued at approximately $39,966,114. The trade was a 18.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Alan E. Baratz sold 687,627 shares of the stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $26.13, for a total value of $17,967,693.51. Following the completion of the transaction, the chief executive officer directly owned 3,299,771 shares of the company's stock, valued at $86,223,016.23. This trade represents a 17.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 1,363,842 shares of company stock worth $35,802,656 in the last quarter. 1.30% of the stock is currently owned by corporate insiders.

Institutional Trading of D-Wave Quantum

Hedge funds have recently added to or reduced their stakes in the business. Baird Financial Group Inc. grew its stake in shares of D-Wave Quantum by 12.0% in the first quarter. Baird Financial Group Inc. now owns 12,135 shares of the company's stock worth $92,000 after purchasing an additional 1,300 shares in the last quarter. Royal Bank of Canada raised its stake in shares of D-Wave Quantum by 59.8% during the first quarter. Royal Bank of Canada now owns 162,088 shares of the company's stock valued at $1,231,000 after purchasing an additional 60,668 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of D-Wave Quantum by 201.0% during the first quarter. AQR Capital Management LLC now owns 200,765 shares of the company's stock valued at $1,526,000 after purchasing an additional 134,066 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in D-Wave Quantum by 93.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,572 shares of the company's stock worth $825,000 after purchasing an additional 52,437 shares during the period. Finally, NewEdge Advisors LLC lifted its holdings in D-Wave Quantum by 125.7% in the first quarter. NewEdge Advisors LLC now owns 43,786 shares of the company's stock worth $333,000 after purchasing an additional 24,382 shares during the period. Institutional investors own 42.47% of the company's stock.

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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