D-Wave Quantum (NYSE:QBTS) Stock Price Down 5.5% - Here's Why

Key Points

• D-Wave Quantum Inc.'s stock price dropped by 5.5%, reaching a low of $36.06 before settling at $38.22, with a trading volume decline of 30% from the average.
• Analysts have mixed outlooks with a consensus rating of "Moderate Buy" and an average price target of $20.27, while some brokerages have set targets ranging from $13.00 to $33.00.
• Insider trading activities included CFO John M. Markovich selling 100,000 shares, representing a 6.03% decrease in his position, and a total of 207,363 shares sold by insiders valued at nearly $4.66 million over the last quarter.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s stock price fell 5.5% during mid-day trading on Friday . The company traded as low as $36.06 and last traded at $38.22. 45,513,157 shares changed hands during mid-day trading, a decline of 30% from the average session volume of 65,152,457 shares. The stock had previously closed at $40.46.

Analysts Set New Price Targets

A number of brokerages have weighed in on QBTS. Weiss Ratings reissued a "sell (e+)" rating on shares of D-Wave Quantum in a report on Tuesday. Piper Sandler increased their price target on shares of D-Wave Quantum from $13.00 to $22.00 and gave the company an "overweight" rating in a report on Friday, August 8th. Rosenblatt Securities began coverage on shares of D-Wave Quantum in a report on Tuesday, July 29th. They issued a "buy" rating and a $30.00 price target for the company. Cantor Fitzgerald began coverage on shares of D-Wave Quantum in a report on Wednesday, July 2nd. They issued an "overweight" rating and a $20.00 price target for the company. Finally, B. Riley increased their price target on shares of D-Wave Quantum from $22.00 to $33.00 and gave the company a "buy" rating in a report on Monday, September 22nd. Eleven research analysts have rated the stock with a Buy rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $20.27.

D-Wave Quantum Stock Down 5.5%

The business's fifty day moving average price is $22.89 and its 200 day moving average price is $16.63. The company has a market capitalization of $13.07 billion, a P/E ratio of -36.40 and a beta of 1.49. The company has a current ratio of 42.99, a quick ratio of 42.86 and a debt-to-equity ratio of 0.05.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported ($0.08) EPS for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.03). The business had revenue of $3.10 million for the quarter, compared to the consensus estimate of $2.55 million. D-Wave Quantum had a negative return on equity of 118.87% and a negative net margin of 1,263.92%.The firm's revenue for the quarter was up 40.9% on a year-over-year basis. As a group, equities research analysts predict that D-Wave Quantum Inc. will post -0.41 earnings per share for the current fiscal year.

Insider Buying and Selling at D-Wave Quantum

In related news, CFO John M. Markovich sold 100,000 shares of D-Wave Quantum stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $18.00, for a total transaction of $1,800,000.00. Following the completion of the transaction, the chief financial officer directly owned 1,558,753 shares of the company's stock, valued at $28,057,554. This trade represents a 6.03% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Rohit Ghai sold 10,000 shares of D-Wave Quantum stock in a transaction dated Monday, September 15th. The shares were sold at an average price of $17.93, for a total transaction of $179,300.00. Following the transaction, the director directly owned 47,778 shares of the company's stock, valued at $856,659.54. This represents a 17.31% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 207,363 shares of company stock valued at $4,659,478 over the last quarter. 3.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On D-Wave Quantum

Several institutional investors have recently added to or reduced their stakes in QBTS. Marex Group plc bought a new position in D-Wave Quantum during the 2nd quarter valued at about $80,070,000. Vanguard Group Inc. lifted its holdings in D-Wave Quantum by 58.5% during the 1st quarter. Vanguard Group Inc. now owns 11,285,043 shares of the company's stock valued at $85,766,000 after purchasing an additional 4,166,721 shares during the last quarter. Arrowstreet Capital Limited Partnership bought a new position in D-Wave Quantum during the 2nd quarter valued at about $45,372,000. Penserra Capital Management LLC increased its position in D-Wave Quantum by 80.1% in the 1st quarter. Penserra Capital Management LLC now owns 5,068,199 shares of the company's stock valued at $38,518,000 after acquiring an additional 2,253,741 shares in the last quarter. Finally, UNICOM Systems Inc. lifted its position in shares of D-Wave Quantum by 91.9% during the first quarter. UNICOM Systems Inc. now owns 4,627,704 shares of the company's stock worth $35,171,000 after purchasing an additional 2,216,000 shares in the last quarter. 42.47% of the stock is owned by institutional investors.

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.

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