D-Wave Quantum (NYSE:QBTS) Stock Price Down 1.8% - Should You Sell?

Key Points

• D-Wave Quantum shares fell 1.8% on Friday, trading as low as $22.86 before last changing hands at $23.40, with volume below its recent average.
• Despite the pullback, analysts remain broadly constructive: multiple firms reiterated Buy/Overweight ratings, and the consensus price target stands at $36.40, above the current price.
• Investors are weighing mixed fundamentals and insider selling against growth prospects. The company beat EPS estimates but missed revenue expectations, while CEO and other insiders sold shares and some commentary warns the stock may be getting expensive versus larger quantum rivals.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) dropped 1.8% during mid-day trading on Friday . The company traded as low as $22.86 and last traded at $23.40. Approximately 27,743,388 shares changed hands during mid-day trading, a decline of 14% from the average daily volume of 32,306,320 shares. The stock had previously closed at $23.82.

Key D-Wave Quantum News

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

• Positive Sentiment: D-Wave is highlighting expansion beyond pure quantum annealing, with a live quantum-classical testNet tied to AI and blockchain use cases plus early drug-discovery progress with Shionogi, which could support the company’s commercialization narrative and future revenue opportunities. Are AI and Blockchain Shaping D-Wave's Next Growth Phase?
• Positive Sentiment: Rosenblatt Securities reaffirmed a Buy rating and set a $43 price target, reinforcing investor optimism that QBTS can keep re-rating if execution improves. D-Wave Quantum (QBTS) Stock Valuation Gap Weighs Long-Term Momentum Against Recent Weakness
• Positive Sentiment: Broader coverage notes that governments are accelerating quantum spending worldwide, including the U.S. funding push, which could benefit D-Wave as the sector attracts more public and private investment. The Quantum Race Is Heating Up, and Governments Worldwide Are Buying In
• Neutral Sentiment: CEO Alan Baratz discussed the company’s quantum roadmap and enterprise adoption on NYSE Live, which may help investor visibility but does not by itself change fundamentals. D-Wave CEO Dr. Alan Baratz Details the Quantum Roadmap and Enterprise Adoption
• Neutral Sentiment: Analyst commentary also points to strong long-term momentum in quantum computing, but recent weakness suggests investors are still weighing valuation against execution risk. D-Wave Quantum (QBTS) Stock Valuation Gap Weighs Long-Term Momentum Against Recent Weakness
• Negative Sentiment: CEO Alan Baratz sold a large block of shares, and CFO John Markovich also disclosed stock sales, which can create concern that insiders see limited near-term upside at current levels. Alan Baratz Sells 687,627 Shares of D-Wave Quantum NYSE: QBTS Stock
• Negative Sentiment: Some market commentary argues QBTS has become expensive after its rally, and competition from larger players like Intel and IBM may make it harder for D-Wave to justify a premium valuation. The Case for Intel Over Pure-Play Quantum Firms (QBTS)

Wall Street Analyst Weigh In

QBTS has been the topic of a number of recent analyst reports. Cantor Fitzgerald reissued an "overweight" rating and issued a $40.00 price target on shares of D-Wave Quantum in a research report on Wednesday, May 13th. Northland Securities started coverage on D-Wave Quantum in a report on Monday, April 20th. They set a "market perform" rating and a $22.00 price objective for the company. Jefferies Financial Group reaffirmed a "buy" rating on shares of D-Wave Quantum in a report on Tuesday, May 12th. TD Cowen started coverage on D-Wave Quantum in a report on Thursday, February 12th. They set a "buy" rating for the company. Finally, Roth Mkm boosted their target price on D-Wave Quantum from $30.00 to $40.00 and gave the stock a "buy" rating in a research report on Tuesday, June 2nd. Fourteen analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $36.40.

D-Wave Quantum Trading Down 1.8%

The business has a 50 day moving average of $21.51 and a two-hundred day moving average of $22.26. The company has a current ratio of 21.41, a quick ratio of 21.31 and a debt-to-equity ratio of 0.03. The firm has a market cap of $8.66 billion, a P/E ratio of -20.71 and a beta of 2.05.

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

Insider Buying and Selling

In related news, Director Rohit Ghai sold 10,000 shares of the firm's stock in a transaction on Monday, March 16th. The stock was sold at an average price of $17.62, for a total value of $176,200.00. Following the transaction, the director owned 27,778 shares in the company, valued at approximately $489,448.36. This trade represents a 26.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director John D. Dilullo sold 7,850 shares of the firm's stock in a transaction on Friday, June 5th. The stock was sold at an average price of $24.43, for a total value of $191,775.50. Following the completion of the transaction, the director owned 21,310 shares in the company, valued at $520,603.30. The trade was a 26.92% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,114,281 shares of company stock valued at $29,374,353 in the last ninety days. Insiders own 1.30% of the company's stock.

Institutional Trading of D-Wave Quantum

Large investors have recently bought and sold shares of the business. Baird Financial Group Inc. boosted its stake in shares of D-Wave Quantum by 12.0% during the first quarter. Baird Financial Group Inc. now owns 12,135 shares of the company's stock valued at $92,000 after purchasing an additional 1,300 shares in the last quarter. Royal Bank of Canada boosted 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 boosted 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. boosted its stake in shares of D-Wave Quantum by 93.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,572 shares of the company's stock valued at $825,000 after purchasing an additional 52,437 shares in the last quarter. Finally, NewEdge Advisors LLC boosted its stake in shares of D-Wave Quantum by 125.7% during the first quarter. NewEdge Advisors LLC now owns 43,786 shares of the company's stock valued at $333,000 after purchasing an additional 24,382 shares in the last quarter. 42.47% of the stock is owned by institutional investors and hedge funds.

About D-Wave Quantum

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.