D-Wave Quantum (NYSE:QBTS) Trading Down 4.6% - What's Next?

Key Points

• D-Wave Quantum's stock price fell by 4.6%, reaching a low of $22.84 before recovering to $25.65 during mid-day trading, with increased trading volume of around 69 million shares.
• Despite the stock's decline, analysts maintain a generally positive outlook, with an average "Buy" rating and a price target of $20.27, although some ratings have been downgraded to "sell."
• The company reported quarterly revenue of $3.10 million, exceeding expectations, but missed earnings estimates with a loss of ($0.08) EPS, reflecting significant financial challenges.

Shares of D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) fell 4.6% during trading on Monday . The company traded as low as $22.84 and last traded at $25.65. 69,456,569 shares were traded during trading, an increase of 7% from the average session volume of 64,830,063 shares. The stock had previously closed at $26.88.

Analyst Ratings Changes

A number of brokerages have commented on QBTS. Rosenblatt Securities began coverage on shares of D-Wave Quantum in a report on Tuesday, July 29th. They set a "buy" rating and a $30.00 target price for the company. Roth Capital reaffirmed a "buy" rating on shares of D-Wave Quantum in a report on Friday, June 13th. B. Riley upped their target price on shares of D-Wave Quantum from $22.00 to $33.00 and gave the company a "buy" rating in a report on Monday. Benchmark reaffirmed a "buy" rating and set a $20.00 price target on shares of D-Wave Quantum in a report on Monday, August 4th. Finally, Williams Trading set a $20.00 price target on shares of D-Wave Quantum in a report on Wednesday, June 18th. Eleven research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company currently has an average rating of "Buy" and an average target price of $20.27.

D-Wave Quantum Price Performance

The stock has a market capitalization of $9.37 billion, a PE ratio of -26.09 and a beta of 1.40. The company has a quick ratio of 42.86, a current ratio of 42.99 and a debt-to-equity ratio of 0.05. The stock's 50 day moving average price is $17.59 and its 200-day moving average price is $13.67.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported ($0.08) earnings per share for the quarter, missing analysts' consensus estimates 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 analysts' expectations of $2.55 million. The firm's revenue was up 40.9% compared to the same quarter last year. As a group, equities analysts forecast that D-Wave Quantum Inc. will post -0.41 EPS for the current year.

Insider Buying and Selling

In related news, Director Rohit Ghai sold 10,000 shares of the business's stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $17.93, for a total transaction of $179,300.00. Following the completion of the transaction, the director owned 47,778 shares in the company, valued at $856,659.54. The trade was a 17.31% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director John D. Dilullo sold 8,000 shares of the business's stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $17.93, for a total transaction of $143,440.00. Following the transaction, the director owned 36,295 shares of the company's stock, valued at approximately $650,769.35. This trade represents a 18.06% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 168,000 shares of company stock worth $2,937,740 in the last 90 days. 3.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On D-Wave Quantum

Hedge funds have recently modified their holdings of the stock. Reyes Financial Architecture Inc. acquired a new position in shares of D-Wave Quantum during the second quarter valued at about $29,000. Atlantic Union Bankshares Corp acquired a new position in D-Wave Quantum in the 2nd quarter worth approximately $29,000. Parallel Advisors LLC increased its holdings in D-Wave Quantum by 227.3% in the 2nd quarter. Parallel Advisors LLC now owns 2,206 shares of the company's stock worth $32,000 after buying an additional 1,532 shares during the period. Gables Capital Management Inc. acquired a new position in D-Wave Quantum in the 2nd quarter worth approximately $37,000. Finally, Huntington National Bank acquired a new position in D-Wave Quantum in the 2nd quarter worth approximately $41,000. Institutional investors and hedge funds own 42.47% of the company's stock.

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.