D-Wave Quantum (NYSE:QBTS) Stock Price Down 5.5% - Time to Sell?

Key Points

• D-Wave Quantum Inc. (NYSE:QBTS) saw a 5.5% decline in stock price, trading as low as $14.20, with significant drop in volume compared to its average.
• Despite the recent stock decline, several analysts have set a buy rating for QBTS, with target prices ranging from $20 to $22, indicating a potential upside.
• The company reported a 40.9% increase in revenue year-over-year for the last quarter, despite posting a loss that missed analysts' estimates.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) dropped 5.5% on Wednesday . The stock traded as low as $14.20 and last traded at $14.48. Approximately 15,639,654 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 67,699,852 shares. The stock had previously closed at $15.32.

Wall Street Analyst Weigh In

QBTS has been the subject of several research analyst reports. B. Riley raised their price objective on D-Wave Quantum from $20.00 to $22.00 and gave the company a "buy" rating in a research note on Wednesday, July 23rd. Piper Sandler increased their target price on D-Wave Quantum from $13.00 to $22.00 and gave the company an "overweight" rating in a report on Friday, August 8th. Roth Capital reiterated a "buy" rating on shares of D-Wave Quantum in a report on Friday, June 13th. Wall Street Zen cut D-Wave Quantum from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Finally, Williams Trading set a $20.00 target price on D-Wave Quantum in a research note on Wednesday, June 18th. Eleven investment analysts have rated the stock with a Buy rating, According to data from MarketBeat, the stock has an average rating of "Buy" and a consensus price target of $19.27.

D-Wave Quantum Trading Down 3.4%

The stock has a market cap of $5.06 billion, a price-to-earnings ratio of -14.08 and a beta of 1.41. 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 business has a 50-day moving average of $16.69 and a 200-day moving average of $11.70.

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 (EPS) 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 firm had revenue of $3.10 million for the quarter, compared to analyst estimates of $2.55 million. D-Wave Quantum's revenue for the quarter was up 40.9% compared to the same quarter last year. As a group, research analysts forecast that D-Wave Quantum Inc. will post -0.41 earnings per share for the current year.

Insider Activity

In other D-Wave Quantum news, Director John D. Dilullo sold 22,000 shares of the stock in a transaction on Friday, June 13th. The shares were sold at an average price of $15.12, for a total transaction of $332,640.00. Following the transaction, the director directly owned 59,295 shares of the company's stock, valued at $896,540.40. This represents a 27.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Rohit Ghai sold 43,517 shares of the 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 $970,670.40. The trade was a 42.96% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 475,308 shares of company stock valued at $8,113,378. Corporate insiders own 3.20% of the company's stock.

Institutional Investors Weigh In On D-Wave Quantum

Institutional investors have recently added to or reduced their stakes in the company. B. Riley Wealth Advisors Inc. acquired a new stake in D-Wave Quantum during the second quarter valued at approximately $203,000. Marex Group plc bought a new stake in shares of D-Wave Quantum during the 2nd quarter valued at $80,070,000. Advisory Services Network LLC acquired a new position in shares of D-Wave Quantum in the 2nd quarter valued at $554,000. Geneos Wealth Management Inc. boosted its stake in D-Wave Quantum by 29.6% in the 2nd quarter. Geneos Wealth Management Inc. now owns 25,049 shares of the company's stock worth $367,000 after purchasing an additional 5,714 shares during the period. Finally, Tower Research Capital LLC TRC boosted its stake in D-Wave Quantum by 1,265.3% in the 2nd quarter. Tower Research Capital LLC TRC now owns 77,164 shares of the company's stock worth $1,130,000 after purchasing an additional 71,512 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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