D-Wave Quantum (NYSE:QBTS) Stock Price Down 12.9% - Time to Sell?

Key Points

• Shares plunged 12.9% intraday to about $20.43 (from a prior close of $23.44) with ~40.48M shares traded, roughly 36% below average daily volume.
• Analysts are largely positive — 11 Buys, 1 Hold and 1 Sell — giving a consensus rating of Moderate Buy and a consensus price target of $28.67.
• D-Wave beat EPS estimates (‑$0.05 vs. ‑$0.07) and reported revenue up 105.6% YoY, but remains unprofitable with very negative margins, and insiders have sold about 1.18M shares (~$32.3M) in the past 90 days.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price dropped 12.9% during mid-day trading on Thursday . The company traded as low as $20.36 and last traded at $20.4250. Approximately 40,483,898 shares changed hands during mid-day trading, a decline of 36% from the average daily volume of 63,353,402 shares. The stock had previously closed at $23.44.

Analyst Ratings Changes

Several equities analysts have recently commented on QBTS shares. Stifel Nicolaus assumed coverage on shares of D-Wave Quantum in a report on Tuesday, August 5th. They issued a "buy" rating and a $26.00 price objective on the stock. Wall Street Zen upgraded D-Wave Quantum from a "sell" rating to a "hold" rating in a research note on Saturday, November 8th. Williams Trading set a $35.00 price target on D-Wave Quantum in a research report on Monday, November 10th. Piper Sandler lifted their price objective on D-Wave Quantum from $13.00 to $22.00 and gave the company an "overweight" rating in a research note on Friday, August 8th. Finally, Benchmark boosted their price objective on D-Wave Quantum from $20.00 to $35.00 and gave the company a "buy" rating in a report on Monday, November 10th. Eleven research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $28.67.

D-Wave Quantum Stock Performance

The company has a current ratio of 54.68, a quick ratio of 54.49 and a debt-to-equity ratio of 0.05. The company has a market capitalization of $7.15 billion, a price-to-earnings ratio of -15.13 and a beta of 1.53. The stock's fifty day simple moving average is $29.61 and its 200-day simple moving average is $20.65.

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

Insider Buying and Selling

In related news, Director John D. Dilullo sold 8,000 shares of the company's stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $17.93, for a total transaction of $143,440.00. Following the sale, the director directly owned 36,295 shares in the company, valued at approximately $650,769.35. This represents a 18.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Alan E. Baratz sold 168,102 shares of the firm's stock in a transaction that occurred on Thursday, November 13th. The shares were sold at an average price of $23.17, for a total transaction of $3,894,923.34. Following the completion of the sale, the chief executive officer directly owned 2,633,163 shares in the company, valued at approximately $61,010,386.71. This trade represents a 6.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 1,179,813 shares of company stock worth $32,303,986 over the last 90 days. 3.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On D-Wave Quantum

A number of large investors have recently modified their holdings of the company. Reyes Financial Architecture Inc. purchased a new stake in shares of D-Wave Quantum during the 2nd quarter worth $29,000. Atlantic Union Bankshares Corp purchased a new position in D-Wave Quantum in the second quarter valued at $29,000. Ancora Advisors LLC acquired a new stake in D-Wave Quantum in the third quarter valued at $30,000. Financial Consulate Inc. purchased a new stake in D-Wave Quantum during the 3rd quarter worth about $31,000. Finally, Parallel Advisors LLC lifted its holdings in D-Wave Quantum by 227.3% during the 2nd quarter. Parallel Advisors LLC now owns 2,206 shares of the company's stock worth $32,000 after buying an additional 1,532 shares during the last quarter. 42.47% of the stock is owned by hedge funds and other institutional investors.

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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