D-Wave Quantum (NYSE:QBTS) Stock Price Down 6.6% - Should You Sell?

Key Points

• D-Wave Quantum shares fell 6.6% on Monday, trading as low as $18.33 before ending at $19.01, below the previous close of $20.35.
• Despite the drop, Wall Street sentiment remains mostly positive: analysts rate the stock a Moderate Buy with a consensus target price of $34.67, though some firms have recently trimmed targets or downgraded their view.
• The company’s latest earnings showed a mixed picture, with EPS beating estimates at -$0.05, but revenue missing expectations at $2.86 million and falling 80.9% year over year.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price was down 6.6% on Monday . The company traded as low as $18.33 and last traded at $19.0060. Approximately 24,526,094 shares traded hands during trading, a decline of 17% from the average daily volume of 29,570,818 shares. The stock had previously closed at $20.35.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Cantor Fitzgerald restated an "overweight" rating and set a $40.00 price objective on shares of D-Wave Quantum in a research report on Wednesday, May 13th. Zacks Research raised D-Wave Quantum from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 28th. Northland Securities initiated coverage on D-Wave Quantum in a research note on Monday, April 20th. They issued a "market perform" rating and a $22.00 target price on the stock. Benchmark restated a "buy" rating and set a $35.00 price target on shares of D-Wave Quantum in a research report on Friday, January 23rd. Finally, Mizuho dropped their price objective on shares of D-Wave Quantum from $31.00 to $29.00 and set an "outperform" rating on the stock in a report on Wednesday, May 13th. Fourteen analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $34.67.

D-Wave Quantum Price Performance

The business's 50-day simple moving average is $18.05 and its 200 day simple moving average is $22.56. The company has a market capitalization of $7.03 billion, a P/E ratio of -16.82 and a beta of 1.95. The company has a current ratio of 21.41, a quick ratio of 21.31 and a debt-to-equity ratio of 0.03.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last posted its quarterly earnings data on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, beating analysts' consensus estimates of ($0.08) by $0.03. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The business had revenue of $2.86 million for the quarter, compared to analyst estimates of $4.19 million. During the same quarter last year, the business earned ($0.02) earnings per share. The business's revenue for the quarter was down 80.9% on a year-over-year basis. As a group, sell-side analysts anticipate that D-Wave Quantum Inc. will post -0.44 EPS for the current year.

Insider Transactions at D-Wave Quantum

In other news, VP Sophie C. Ames sold 3,070 shares of the business's stock in a transaction on Monday, April 20th. The stock was sold at an average price of $21.35, for a total value of $65,544.50. Following the sale, the vice president owned 643,678 shares of the company's stock, valued at approximately $13,742,525.30. The trade was a 0.47% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Markovich sold 10,706 shares of the company's stock in a transaction on Friday, March 13th. The shares were sold at an average price of $17.63, for a total value of $188,746.78. Following the completion of the sale, the chief financial officer owned 1,451,427 shares of the company's stock, valued at approximately $25,588,658.01. This trade represents a 0.73% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 31,776 shares of company stock valued at $574,571 in the last quarter. Company insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On D-Wave Quantum

Large investors have recently made changes to their positions in the business. Baird Financial Group Inc. raised its holdings in shares of D-Wave Quantum by 12.0% in the 1st quarter. Baird Financial Group Inc. now owns 12,135 shares of the company's stock worth $92,000 after purchasing an additional 1,300 shares in the last quarter. Royal Bank of Canada grew its position in D-Wave Quantum by 59.8% in the first quarter. Royal Bank of Canada now owns 162,088 shares of the company's stock worth $1,231,000 after buying an additional 60,668 shares during the last quarter. AQR Capital Management LLC grew its position in D-Wave Quantum by 201.0% in the first quarter. AQR Capital Management LLC now owns 200,765 shares of the company's stock worth $1,526,000 after buying an additional 134,066 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of D-Wave Quantum by 93.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,572 shares of the company's stock valued at $825,000 after buying an additional 52,437 shares in the last quarter. Finally, NewEdge Advisors LLC lifted its position in shares of D-Wave Quantum by 125.7% during the 1st quarter. NewEdge Advisors LLC now owns 43,786 shares of the company's stock valued at $333,000 after acquiring an additional 24,382 shares during the last quarter. Institutional investors own 42.47% of the company's stock.

About D-Wave Quantum

D-Wave Quantum Inc NYSE: QBTS develops and provides quantum computing systems, software and services focused on quantum annealing technology. Headquartered in Burnaby, British Columbia, D-Wave designs specialized processors that leverage quantum mechanics to solve complex optimization and sampling problems. Since its founding in 1999 by physicists including Geordie Rose, the company has pursued the development of commercially viable quantum hardware and accompanying software tools.

The company's product portfolio centers on its quantum annealers, which are complemented by hybrid solvers that integrate classical and quantum computing resources.

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