D-Wave Quantum (NYSE:QBTS) Stock Price Down 4.1% - Here's What Happened

Key Points

• D-Wave Quantum shares fell 4.1% in Thursday trading, briefly hitting $22.30 before last trading around $22.53, with volume running below average.
• Analysts remain broadly positive on the stock: the consensus rating is “Moderate Buy,” with an average price target of $36.80, despite some recent target adjustments.
• Recent fundamentals and insider activity were mixed: the company beat EPS estimates in its latest quarter but missed revenue expectations, while CEO and other insiders have sold a notable amount of stock in recent months.

Shares of D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) were down 4.1% during mid-day trading on Thursday . The company traded as low as $22.30 and last traded at $22.5250. Approximately 21,303,221 shares were traded during trading, a decline of 33% from the average session volume of 32,013,586 shares. The stock had previously closed at $23.50.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the company. Stifel Nicolaus set a $35.00 price target on D-Wave Quantum in a report on Tuesday, June 2nd. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $40.00 price objective on shares of D-Wave Quantum in a report on Wednesday, May 13th. Zacks Research upgraded D-Wave Quantum from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 28th. Needham & Company LLC reissued a "buy" rating and issued a $40.00 target price on shares of D-Wave Quantum in a report on Tuesday, June 2nd. Finally, Canaccord Genuity Group dropped their price target 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. Fourteen research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $36.80.

D-Wave Quantum Trading Down 4.1%

The company has a debt-to-equity ratio of 0.03, a quick ratio of 21.31 and a current ratio of 21.41. The business has a fifty day simple moving average of $23.59 and a 200 day simple moving average of $22.16. The stock has a market cap of $8.33 billion, a price-to-earnings ratio of -19.93 and a beta of 2.11.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last released its quarterly earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share for the quarter, topping analysts' consensus estimates of ($0.08) by $0.03. The company had revenue of $2.86 million during 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 business's revenue for the quarter was down 80.9% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.02) earnings per share. As a group, equities analysts anticipate that D-Wave Quantum Inc. will post -0.43 EPS for the current year.

Insider Transactions at D-Wave Quantum

In other D-Wave Quantum news, VP Sophie C. Ames sold 23,025 shares of the company's stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $18.98, for a total value of $437,014.50. Following the transaction, the vice president directly owned 596,803 shares in the company, valued at approximately $11,327,320.94. This represents a 3.71% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Alan E. Baratz sold 687,627 shares of the firm's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $26.13, for a total transaction of $17,967,693.51. Following the sale, the chief executive officer directly owned 3,299,771 shares in the company, valued at $86,223,016.23. This represents a 17.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,363,842 shares of company stock worth $35,802,656 in the last ninety days. Company insiders own 1.30% of the company's stock.

Institutional Trading of D-Wave Quantum

Hedge funds and other institutional investors have recently bought and sold shares of the company. Root Financial Partners LLC lifted its stake in shares of D-Wave Quantum by 388.0% during the 4th quarter. Root Financial Partners LLC now owns 976 shares of the company's stock worth $26,000 after purchasing an additional 776 shares during the period. Parallel Advisors LLC grew its position in shares of D-Wave Quantum by 545.5% in 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 during the period. Kemnay Advisory Services Inc. purchased a new stake in shares of D-Wave Quantum in the fourth quarter valued at $28,000. PeakShares LLC acquired a new position in D-Wave Quantum in the first quarter valued at $29,000. Finally, EverSource Wealth Advisors LLC increased its stake in D-Wave Quantum by 267.7% in 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 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 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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