D-Wave Quantum (NYSE:QBTS) Stock Price Down 7.3% - Here's What Happened

Key Points

• D-Wave Quantum shares fell 7.3% on Thursday, trading as low as $16.81 after closing at $18.27 the prior day. Volume was also below normal, with about 18.7 million shares traded versus an average of 31.0 million.
• Despite the stock drop, analysts remain broadly bullish. Recent price targets were mostly raised or maintained, and MarketBeat shows 14 Buy ratings, 2 Holds, and 1 Sell, with an average target of $36.80.
• The company’s latest results showed mixed fundamentals: it beat EPS estimates but missed revenue expectations, and revenue fell sharply year over year. Insider selling has also been notable, including large sales by the CFO and a director in recent weeks.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) shares fell 7.3% during trading on Thursday . The company traded as low as $16.81 and last traded at $16.93. Approximately 18,727,693 shares were traded during mid-day trading, a decline of 40% from the average session volume of 30,993,070 shares. The stock had previously closed at $18.27.

Analysts Set New Price Targets

QBTS has been the subject of several recent analyst reports. Roth Capital raised their target price on D-Wave Quantum from $30.00 to $40.00 and gave the stock a "buy" rating in a research note on Tuesday, June 2nd. Rosenblatt Securities reaffirmed a "buy" rating and issued a $43.00 price target on shares of D-Wave Quantum in a research note on Thursday, June 11th. Canaccord Genuity Group lowered their price target on D-Wave Quantum from $43.00 to $41.00 and set a "buy" rating for the company in a report on Wednesday, May 13th. Needham & Company LLC reissued a "buy" rating and set a $40.00 price objective on shares of D-Wave Quantum in a research report on Tuesday, June 2nd. Finally, Mizuho boosted their price objective on shares of D-Wave Quantum from $29.00 to $35.00 and gave the company an "outperform" rating in a report on Monday, June 15th. Fourteen analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, D-Wave Quantum presently has an average rating of "Moderate Buy" and an average price target of $36.80.

D-Wave Quantum Price Performance

The company has a debt-to-equity ratio of 0.03, a quick ratio of 21.31 and a current ratio of 21.41. The stock's 50-day moving average is $23.72 and its two-hundred day moving average is $21.73. The stock has a market cap of $6.26 billion, a PE ratio of -14.98 and a beta of 2.11.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.08) by $0.03. D-Wave Quantum had a negative return on equity of 44.06% and a negative net margin of 2,957.23%.The company had revenue of $2.86 million for the quarter, compared to analyst estimates of $4.19 million. During the same quarter in the previous year, the company earned ($0.02) earnings per share. The firm's quarterly revenue was down 80.9% compared to the same quarter last year. On average, equities analysts predict that D-Wave Quantum Inc. will post -0.42 earnings per share for the current year.

Insider Transactions at D-Wave Quantum

In related news, Director John D. Dilullo sold 7,850 shares of the stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $24.43, for a total transaction of $191,775.50. Following the transaction, the director owned 21,310 shares of the company's stock, valued at approximately $520,603.30. This represents a 26.92% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Markovich sold 200,000 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $25.71, for a total value of $5,142,000.00. Following the transaction, the chief financial officer directly owned 1,142,820 shares in the company, valued at approximately $29,381,902.20. The trade was a 14.89% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 1,363,842 shares of company stock worth $35,802,656. 1.30% of the stock is owned by corporate insiders.

Institutional Trading of D-Wave Quantum

Several hedge funds have recently made changes to their positions in QBTS. UBS Group AG increased its stake in D-Wave Quantum by 541.6% during the 3rd quarter. UBS Group AG now owns 12,089,703 shares of the company's stock worth $298,737,000 after buying an additional 10,205,427 shares during the period. Geode Capital Management LLC boosted its position in D-Wave Quantum by 11.5% in the 4th quarter. Geode Capital Management LLC now owns 8,394,726 shares of the company's stock valued at $220,085,000 after buying an additional 866,405 shares during the period. State Street Corp boosted its position in D-Wave Quantum by 5.3% in the 4th quarter. State Street Corp now owns 7,707,085 shares of the company's stock valued at $201,540,000 after buying an additional 385,809 shares during the period. Marex Group plc grew its stake in shares of D-Wave Quantum by 74.9% in the fourth quarter. Marex Group plc now owns 4,592,656 shares of the company's stock worth $120,098,000 after acquiring an additional 1,966,500 shares in the last quarter. Finally, Clear Street Group Inc. grew its stake in shares of D-Wave Quantum by 40.4% in the fourth quarter. Clear Street Group Inc. now owns 4,281,254 shares of the company's stock worth $111,955,000 after acquiring an additional 1,232,106 shares in the last quarter. Institutional investors and hedge funds own 42.47% of the company's stock.

D-Wave Quantum Company Profile

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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