D-Wave Quantum (NYSE:QBTS) Shares Down 4.4% on Disappointing Earnings

Key Points

• D-Wave Quantum Inc. stock fell 4.4% to $16.81 following a quarterly earnings miss, reporting a loss of ($0.08) per share compared to the estimated ($0.05).
• The company's revenue increased by 40.9% year-over-year, despite a negative net margin of 617.84% and a return on equity of -227.95%.
• Multiple brokerages issued "buy" ratings with target prices ranging from $20.00 to $30.00, reflecting continued investor optimism despite current stock volatility.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s stock price fell 4.4% during mid-day trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $16.56 and last traded at $16.81. 33,235,581 shares were traded during mid-day trading, a decline of 52% from the average session volume of 69,179,570 shares. The stock had previously closed at $17.58.

The company reported ($0.08) EPS for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.03). The company had revenue of $3.10 million for the quarter, compared to analyst estimates of $2.55 million. D-Wave Quantum had a negative net margin of 1,263.92% and a negative return on equity of 333.68%. The firm's quarterly revenue was up 40.9% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on QBTS shares. Piper Sandler increased their price target on shares of D-Wave Quantum from $13.00 to $22.00 and gave the stock an "overweight" rating in a research report on Friday. Wall Street Zen lowered shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a research report on Saturday. Williams Trading set a $20.00 price objective on shares of D-Wave Quantum in a report on Wednesday, June 18th. Cantor Fitzgerald initiated coverage on shares of D-Wave Quantum in a report on Wednesday, July 2nd. They set an "overweight" rating and a $20.00 price objective for the company. Finally, Rosenblatt Securities initiated coverage on shares of D-Wave Quantum in a report on Tuesday, July 29th. They set a "buy" rating and a $30.00 price objective for the company. One research analyst has rated the stock with a sell rating and twelve have issued a buy rating to the company's stock. According to MarketBeat, D-Wave Quantum has a consensus rating of "Moderate Buy" and an average price target of $17.92.

Insider Activity

In other news, CFO John M. Markovich sold 400,000 shares of D-Wave Quantum stock in a transaction on Wednesday, May 21st. The shares were sold at an average price of $17.30, for a total transaction of $6,920,000.00. Following the transaction, the chief financial officer directly owned 1,577,944 shares of the company's stock, valued at $27,298,431.20. This trade represents a 20.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Rohit Ghai sold 43,517 shares of D-Wave Quantum stock in a transaction on Thursday, June 12th. The stock was sold at an average price of $16.80, for a total transaction of $731,085.60. Following the transaction, the director directly owned 57,778 shares in the company, valued at approximately $970,670.40. This represents a 42.96% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 1,636,796 shares of company stock worth $27,872,091. Corporate insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On D-Wave Quantum

Hedge funds and other institutional investors have recently made changes to their positions in the company. Fourth Dimension Wealth LLC bought a new position in shares of D-Wave Quantum during the fourth quarter worth $26,000. Reyes Financial Architecture Inc. bought a new stake in D-Wave Quantum in the 2nd quarter valued at $29,000. Atlantic Union Bankshares Corp bought a new stake in D-Wave Quantum in the 2nd quarter valued at $29,000. Parallel Advisors LLC lifted its position in D-Wave Quantum by 227.3% in the 2nd quarter. Parallel Advisors LLC now owns 2,206 shares of the company's stock valued at $32,000 after acquiring an additional 1,532 shares in the last quarter. Finally, Gables Capital Management Inc. bought a new stake in D-Wave Quantum in the 2nd quarter valued at $37,000. 42.47% of the stock is owned by institutional investors.

D-Wave Quantum Stock Down 1.9%

The firm has a market capitalization of $4.92 billion, a P/E ratio of -16.04 and a beta of 1.41. The firm's 50-day moving average is $16.71 and its 200 day moving average is $11.11. The company has a debt-to-equity ratio of 0.15, a quick ratio of 20.61 and a current ratio of 20.73.

About D-Wave Quantum

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.