D-Wave Quantum (NYSE:QBTS) Shares Down 3.1% - Here's Why

Key Points

• D-Wave Quantum Inc. shares dropped by 3.1% to trade at $15.14, with a significant decrease in trading volume of 86% compared to the average.
• Analysts are optimistic, with a consensus rating of "Buy" and a price target of $19.27, reflecting a boost from Piper Sandler, raising their target to $22.00.
• Despite a revenue increase of 40.9% year-over-year, the company reported a loss with an EPS of (-$0.08), below the expected consensus of (–$0.05).

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) dropped 3.1% during trading on Tuesday . The company traded as low as $14.78 and last traded at $15.14. Approximately 9,102,117 shares changed hands during trading, a decline of 86% from the average daily volume of 65,710,281 shares. The stock had previously closed at $15.62.

Analyst Ratings Changes

Several research firms have commented on QBTS. B. Riley lifted their price target on shares of D-Wave Quantum from $20.00 to $22.00 and gave the stock a "buy" rating in a research note on Wednesday, July 23rd. Rosenblatt Securities assumed coverage on shares of 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. Roth Capital reaffirmed a "buy" rating on shares of D-Wave Quantum in a research note on Friday, June 13th. Stifel Nicolaus started coverage on D-Wave Quantum in a research note on Tuesday, August 5th. They issued a "buy" rating and a $26.00 target price for the company. Finally, Cantor Fitzgerald started coverage on D-Wave Quantum in a report on Wednesday, July 2nd. They set an "overweight" rating and a $20.00 target price for the company. Eleven investment analysts have rated the stock with a Buy rating, According to MarketBeat, the stock presently has an average rating of "Buy" and a consensus target price of $19.27.

D-Wave Quantum Stock Performance

The company has a debt-to-equity ratio of 0.05, a current ratio of 42.99 and a quick ratio of 42.86. The company has a market capitalization of $5.22 billion, a PE ratio of -14.54 and a beta of 1.39. The company has a 50 day moving average of $16.70 and a two-hundred day moving average of $12.44.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported ($0.08) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.03). D-Wave Quantum had a negative return on equity of 118.87% and a negative net margin of 1,263.92%.The business had revenue of $3.10 million during the quarter, compared to the consensus estimate of $2.55 million. The company's revenue for the quarter was up 40.9% on a year-over-year basis. As a group, equities research analysts predict that D-Wave Quantum Inc. will post -0.41 earnings per share for the current year.

Insider Activity at D-Wave Quantum

In other news, CFO John M. Markovich sold 100,000 shares of the business's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $18.00, for a total value of $1,800,000.00. Following the transaction, the chief financial officer directly owned 1,558,753 shares in the company, valued at $28,057,554. The trade was a 6.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Rohit Ghai sold 43,517 shares of D-Wave Quantum stock in a transaction dated Thursday, June 12th. The stock was sold at an average price of $16.80, for a total value of $731,085.60. Following the completion of the sale, the director directly owned 57,778 shares in the company, valued at $970,670.40. This trade represents a 42.96% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 378,787 shares of company stock worth $6,389,513 in the last 90 days. Insiders own 3.20% of the company's stock.

Institutional Trading of D-Wave Quantum

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Fourth Dimension Wealth LLC bought a new position in D-Wave Quantum in the 4th quarter worth about $26,000. Reyes Financial Architecture Inc. bought a new position in D-Wave Quantum in the second quarter worth about $29,000. Atlantic Union Bankshares Corp bought a new position in shares of D-Wave Quantum during the 2nd quarter worth approximately $29,000. Parallel Advisors LLC lifted its holdings in shares of D-Wave Quantum by 227.3% during the 2nd quarter. Parallel Advisors LLC now owns 2,206 shares of the company's stock valued at $32,000 after purchasing an additional 1,532 shares during the last quarter. Finally, Gables Capital Management Inc. purchased a new position in shares of D-Wave Quantum in the 2nd quarter valued at approximately $37,000. 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.