D-Wave Quantum (NYSE:QBTS) Stock Price Down 6.2% - Here's Why

Key Points

• D-Wave Quantum Inc. shares fell 6.2% to $32.28, with a significant decrease in trading volume of 38% from its average.
• Equities analysts remain generally positive, with an average rating of "Moderate Buy" and a consensus price target of $20.27.
• Recent insider trading indicated a decrease in ownership, with directors selling shares at an average price of $17.93.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price dropped 6.2% during mid-day trading on Tuesday . The company traded as low as $31.12 and last traded at $32.28. Approximately 40,258,338 shares changed hands during trading, a decline of 38% from the average daily volume of 64,912,750 shares. The stock had previously closed at $34.40.

Analyst Ratings Changes

A number of equities research analysts have weighed in on QBTS shares. Piper Sandler lifted their price objective on D-Wave Quantum from $13.00 to $22.00 and gave the company an "overweight" rating in a report on Friday, August 8th. Needham & Company LLC reaffirmed a "buy" rating on shares of D-Wave Quantum in a report on Monday, August 4th. Canaccord Genuity Group started coverage on shares of D-Wave Quantum in a research report on Wednesday, July 23rd. They set a "buy" rating and a $20.00 target price on the stock. Wall Street Zen downgraded shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Finally, Cantor Fitzgerald assumed 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 on the stock. Eleven analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $20.27.

D-Wave Quantum Stock Down 6.2%

The firm has a market cap of $11.04 billion, a price-to-earnings ratio of -30.75 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. The firm has a 50 day moving average price of $23.66 and a 200-day moving average price of $17.17.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last issued 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). 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 during the quarter, compared to analyst estimates of $2.55 million. D-Wave Quantum's revenue for the quarter was up 40.9% on a year-over-year basis. On average, equities analysts forecast that D-Wave Quantum Inc. will post -0.41 EPS for the current year.

Insider Buying and Selling

In other news, Director Rohit Ghai sold 10,000 shares of the company's stock in a transaction on Monday, September 15th. The stock was sold at an average price of $17.93, for a total value of $179,300.00. Following the sale, the director directly owned 47,778 shares in the company, valued at $856,659.54. This represents a 17.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director John D. Dilullo sold 8,000 shares of D-Wave Quantum stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $17.93, for a total value of $143,440.00. Following the sale, the director owned 36,295 shares of the company's stock, valued at approximately $650,769.35. This represents a 18.06% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 207,363 shares of company stock worth $4,659,478 in the last 90 days. Corporate insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On D-Wave Quantum

Institutional investors and hedge funds have recently modified their holdings of the company. Vontobel Holding Ltd. raised its holdings in D-Wave Quantum by 786.8% in the 1st quarter. Vontobel Holding Ltd. now owns 110,850 shares of the company's stock valued at $842,000 after acquiring an additional 98,350 shares during the last quarter. IFP Advisors Inc grew its position in shares of D-Wave Quantum by 123.8% in the second quarter. IFP Advisors Inc now owns 14,814 shares of the company's stock valued at $217,000 after purchasing an additional 8,194 shares during the period. Farther Finance Advisors LLC increased its stake in D-Wave Quantum by 491.3% in the second quarter. Farther Finance Advisors LLC now owns 16,321 shares of the company's stock valued at $239,000 after purchasing an additional 13,561 shares during the last quarter. Kingswood Wealth Advisors LLC purchased a new position in D-Wave Quantum during the first quarter worth about $167,000. Finally, Bouvel Investment Partners LLC purchased a new position in D-Wave Quantum during the second quarter worth about $2,145,000. Hedge funds and other institutional investors own 42.47% of the company's stock.

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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