D-Wave Quantum (NYSE:QBTS) Stock Price Down 8.9% Following Insider Selling

Key Points

• D-Wave Quantum's stock price fell by 8.9% after CEO Alan E. Baratz sold 31,369 shares, leading to a significant decline in trading volume.
• Several analysts have rated D-Wave Quantum with a consensus price target of $20.27, while the company currently has a rating of "Moderate Buy."
• D-Wave Quantum reported a negative return on equity of 118.87% and missed earnings estimates, despite a revenue increase of 40.9% compared to the previous year.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s stock price traded down 8.9% during trading on Thursday after an insider sold shares in the company. The company traded as low as $41.51 and last traded at $40.80. 18,191,083 shares changed hands during trading, a decline of 72% from the average session volume of 65,044,949 shares. The stock had previously closed at $44.78.

Specifically, CEO Alan E. Baratz sold 31,369 shares of the business's stock in a transaction dated Tuesday, October 14th. The shares were sold at an average price of $43.74, for a total transaction of $1,372,080.06. Following the sale, the chief executive officer owned 2,801,265 shares of the company's stock, valued at $122,527,331.10. The trade was a 1.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO John M. Markovich sold 7,994 shares of the business's stock in a transaction on Tuesday, October 14th. The stock was sold at an average price of $43.74, for a total value of $349,657.56. Following the completion of the sale, the chief financial officer directly owned 1,580,934 shares in the company, valued at $69,150,053.16. This trade represents a 0.50% decrease in their ownership of the stock. The disclosure for this sale can be found here.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the company. Cantor Fitzgerald initiated coverage on D-Wave Quantum in a report on Wednesday, July 2nd. They issued an "overweight" rating and a $20.00 target price on the stock. Weiss Ratings restated a "sell (e+)" rating on shares of D-Wave Quantum in a research report on Tuesday. Wall Street Zen downgraded shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Canaccord Genuity Group initiated coverage on shares of D-Wave Quantum in a report on Wednesday, July 23rd. They issued a "buy" rating and a $20.00 price target on the stock. Finally, Stifel Nicolaus initiated coverage on D-Wave Quantum in a research note on Tuesday, August 5th. They issued a "buy" rating and a $26.00 price objective on the stock. Eleven investment analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company. According to MarketBeat, D-Wave Quantum currently has an average rating of "Moderate Buy" and a consensus price target of $20.27.

D-Wave Quantum Stock Down 9.0%

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 business has a 50-day moving average price of $22.42 and a 200-day moving average price of $16.40. The firm has a market cap of $13.93 billion, a P/E ratio of -38.77 and a beta of 1.49.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported ($0.08) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.03). The business had revenue of $3.10 million during the quarter, compared to analyst estimates 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%.D-Wave Quantum's revenue was up 40.9% compared to the same quarter last year. On average, equities analysts forecast that D-Wave Quantum Inc. will post -0.41 EPS for the current fiscal year.

Institutional Trading of D-Wave Quantum

Institutional investors have recently made changes to their positions in the company. GAMMA Investing LLC increased its position in shares of D-Wave Quantum by 34.6% during the 3rd quarter. GAMMA Investing LLC now owns 1,874 shares of the company's stock worth $46,000 after purchasing an additional 482 shares during the last quarter. Reyes Financial Architecture Inc. acquired a new position in shares of D-Wave Quantum in the second quarter worth $29,000. Atlantic Union Bankshares Corp acquired a new position in shares of D-Wave Quantum during the second quarter worth about $29,000. Parallel Advisors LLC grew its stake in shares of D-Wave Quantum by 227.3% during the second quarter. Parallel Advisors LLC now owns 2,206 shares of the company's stock worth $32,000 after purchasing an additional 1,532 shares in the last quarter. Finally, Gables Capital Management Inc. acquired a new position in shares of D-Wave Quantum during the second quarter worth $37,000. Hedge funds and other institutional investors own 42.47% of the company's stock.

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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