D-Wave Quantum (NYSE:QBTS) Stock Price Down 3.2% - Time to Sell?

Key Points

• D-Wave Quantum (NYSE: QBTS) shares fell 3.2% on Monday, trading as low as $27.83 before last changing hands at $29.17, with volume running well above average at 48.7 million shares.
• Analyst sentiment remains mostly positive: 14 analysts rate the stock a Buy, with a consensus Moderate Buy and an average price target of $34.67, despite some mixed target-price revisions and a few downgrades.
• The company’s latest earnings showed a smaller-than-expected loss of $0.05 per share, but revenue came in below estimates at $2.86 million and plunged 80.9% year over year, underscoring ongoing fundamental weakness.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) shares traded down 3.2% during mid-day trading on Monday . The company traded as low as $27.83 and last traded at $29.17. 48,729,059 shares changed hands during trading, an increase of 52% from the average session volume of 32,144,949 shares. The stock had previously closed at $30.14.

Analyst Upgrades and Downgrades

QBTS has been the topic of a number of research reports. Zacks Research raised D-Wave Quantum from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 28th. Cantor Fitzgerald restated an "overweight" rating and issued a $40.00 target price on shares of D-Wave Quantum in a research report on Wednesday, May 13th. Canaccord Genuity Group dropped their target price on D-Wave Quantum from $43.00 to $41.00 and set a "buy" rating for the company in a research report on Wednesday, May 13th. Rosenblatt Securities restated a "buy" rating and issued a $43.00 target price on shares of D-Wave Quantum in a research report on Wednesday, May 13th. Finally, Weiss Ratings downgraded D-Wave Quantum from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Wednesday, April 29th. Fourteen research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, D-Wave Quantum currently has a consensus rating of "Moderate Buy" and an average price target of $34.67.

D-Wave Quantum Stock Performance

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 company has a market cap of $10.79 billion, a P/E ratio of -25.81 and a beta of 2.05. The business has a fifty day moving average of $19.54 and a 200 day moving average of $22.10.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its earnings results on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, beating analysts' consensus estimates of ($0.08) by $0.03. The company had revenue of $2.86 million during the quarter, compared to the consensus estimate 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 firm's revenue for the quarter was down 80.9% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.02) earnings per share. On average, equities analysts predict that D-Wave Quantum Inc. will post -0.44 EPS for the current year.

Insiders Place Their Bets

In related news, VP Sophie C. Ames sold 23,025 shares of the company's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $18.98, for a total value of $437,014.50. Following the sale, the vice president directly owned 596,803 shares of the company's stock, valued at $11,327,320.94. This represents a 3.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John D. Dilullo sold 8,000 shares of the company's stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $18.01, for a total value of $144,080.00. Following the completion of the sale, the director directly owned 19,803 shares in the company, valued at approximately $356,652.03. The trade was a 28.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 383,553 shares of company stock worth $10,118,016 in the last ninety days. Insiders own 1.30% of the company's stock.

Institutional Investors Weigh In On D-Wave Quantum

A number of institutional investors have recently modified their holdings of QBTS. Root Financial Partners LLC grew its stake in shares of D-Wave Quantum by 388.0% in the fourth quarter. Root Financial Partners LLC now owns 976 shares of the company's stock worth $26,000 after acquiring an additional 776 shares during the last quarter. Parallel Advisors LLC lifted its holdings in shares of D-Wave Quantum by 545.5% during the first quarter. Parallel Advisors LLC now owns 1,788 shares of the company's stock valued at $26,000 after purchasing an additional 1,511 shares in the last quarter. Kemnay Advisory Services Inc. bought a new position in shares of D-Wave Quantum during the fourth quarter valued at $28,000. PeakShares LLC bought a new position in shares of D-Wave Quantum during the first quarter valued at $29,000. Finally, EverSource Wealth Advisors LLC lifted its holdings in shares of D-Wave Quantum by 267.7% during the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company's stock valued at $30,000 after purchasing an additional 838 shares in 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 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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