D-Wave Quantum (NYSE:QBTS) Stock Price Down 4.9% - Time to Sell?

Key Points

• D-Wave Quantum Inc. shares fell by 4.9%, trading at around $15.75, with a significant decline in trading volume, down 80% from average levels.
• Despite the recent drop, the stock has a consensus rating of "Buy" among analysts, with targets ranging from $20.00 to $26.00.
• Insider selling occurred recently, with both the CFO and CEO selling a substantial amount of shares, indicating a 22.78% and 20.22% decrease in their ownership stakes respectively.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) shares dropped 4.9% on Tuesday . The company traded as low as $15.67 and last traded at $15.75. Approximately 13,544,067 shares were traded during trading, a decline of 80% from the average daily volume of 67,882,977 shares. The stock had previously closed at $16.56.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on QBTS shares. Williams Trading set a $20.00 price target on shares of D-Wave Quantum in a research note on Wednesday, June 18th. Wall Street Zen cut shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Canaccord Genuity Group initiated coverage on shares of D-Wave Quantum in a report on Wednesday, July 23rd. They issued a "buy" rating and a $20.00 price objective on the stock. Stifel Nicolaus started coverage on shares of D-Wave Quantum in a research note on Tuesday, August 5th. They set a "buy" rating and a $26.00 price target on the stock. Finally, Needham & Company LLC restated a "buy" rating on shares of D-Wave Quantum in a research note on Monday, August 4th. Eleven equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of $19.27.

D-Wave Quantum Trading Down 6.2%

The company has a debt-to-equity ratio of 0.05, a quick ratio of 42.86 and a current ratio of 42.99. The business's 50 day moving average price is $16.72 and its 200-day moving average price is $11.68. The firm has a market cap of $5.31 billion, a price-to-earnings ratio of -14.79 and a beta of 1.41.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced 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 net margin of 1,263.92% and a negative return on equity of 118.87%. The business had revenue of $3.10 million for the quarter, compared to the consensus estimate of $2.55 million. The firm's revenue was up 40.9% on a year-over-year basis. Equities analysts expect that D-Wave Quantum Inc. will post -0.41 EPS for the current year.

Insider Transactions at D-Wave Quantum

In other D-Wave Quantum news, CFO John M. Markovich sold 400,000 shares of the company's stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $17.30, for a total value of $6,920,000.00. Following the completion of the transaction, the chief financial officer owned 1,577,944 shares in the company, valued at approximately $27,298,431.20. This represents a 20.22% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Alan E. Baratz sold 845,813 shares of the stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $17.00, for a total transaction of $14,378,821.00. Following the completion of the transaction, the chief executive officer owned 2,866,412 shares of the company's stock, valued at $48,729,004. This trade represents a 22.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,736,796 shares of company stock worth $29,672,091 in the last quarter. 3.20% of the stock is currently owned by corporate insiders.

Institutional Trading of D-Wave Quantum

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Geneos Wealth Management Inc. boosted its position in shares of D-Wave Quantum by 29.6% in the second quarter. Geneos Wealth Management Inc. now owns 25,049 shares of the company's stock worth $367,000 after buying an additional 5,714 shares during the period. Tower Research Capital LLC TRC raised its holdings in shares of D-Wave Quantum by 1,265.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 77,164 shares of the company's stock valued at $1,130,000 after purchasing an additional 71,512 shares in the last quarter. Corient Private Wealth LLC raised its holdings in shares of D-Wave Quantum by 11.4% during the 2nd quarter. Corient Private Wealth LLC now owns 34,828 shares of the company's stock valued at $510,000 after purchasing an additional 3,553 shares in the last quarter. Florida Financial Advisors LLC bought a new stake in D-Wave Quantum during the second quarter valued at about $483,000. Finally, Captrust Financial Advisors boosted its holdings in D-Wave Quantum by 11.1% during the second quarter. Captrust Financial Advisors now owns 18,454 shares of the company's stock valued at $270,000 after acquiring an additional 1,849 shares during the period. 42.47% of the stock is owned by institutional investors and hedge funds.

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.

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