D-Wave Quantum (NYSE:QBTS) Stock Price Up 11.5% - Should You Buy?

Key Points

• Shares jumped 11.5% mid-day to $25.09 (intraday high $25.29) on Wednesday with 39.6M shares traded—below the 62.0M session average—and a market cap around $8.79 billion.
• Analysts are largely bullish (12 Buys, 1 Hold, 1 Sell) with a consensus "Moderate Buy" and an average target of $29.85, while firms like Cantor Fitzgerald and Rosenblatt have lifted targets to $40.
• D-Wave beat the quarter (revenue $3.74M, +105.6% YoY; EPS -$0.05 vs. -$0.07 est.) but remains deeply unprofitable (net margin -1,651.81%), and insiders sold about 1.38M shares last quarter, including sizable CEO sales.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) shares traded up 11.5% during mid-day trading on Wednesday . The stock traded as high as $25.29 and last traded at $25.0920. 39,641,502 shares changed hands during mid-day trading, a decline of 36% from the average session volume of 62,035,285 shares. The stock had previously closed at $22.50.

Analyst Ratings Changes

Several brokerages have weighed in on QBTS. Cantor Fitzgerald lifted their price objective on D-Wave Quantum from $20.00 to $40.00 and gave the company an "overweight" rating in a report on Friday, November 7th. Piper Sandler lifted their price target on D-Wave Quantum from $13.00 to $22.00 and gave the company an "overweight" rating in a research note on Friday, August 8th. Rosenblatt Securities upped their price objective on D-Wave Quantum from $30.00 to $40.00 and gave the stock a "buy" rating in a research report on Friday, November 7th. Stifel Nicolaus assumed coverage on shares of D-Wave Quantum in a research note on Tuesday, August 5th. They issued a "buy" rating and a $26.00 price target on the stock. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of D-Wave Quantum in a research report on Tuesday. Twelve investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, D-Wave Quantum has an average rating of "Moderate Buy" and an average target price of $29.85.

D-Wave Quantum Trading Up 11.5%

The company has a market capitalization of $8.79 billion, a P/E ratio of -18.59 and a beta of 1.57. The company has a debt-to-equity ratio of 0.05, a quick ratio of 54.49 and a current ratio of 54.68. The business has a fifty day moving average of $29.60 and a 200-day moving average of $21.49.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings results on Thursday, November 6th. The company reported ($0.05) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.02. D-Wave Quantum had a negative return on equity of 97.58% and a negative net margin of 1,651.81%.The business had revenue of $3.74 million during the quarter, compared to the consensus estimate of $3.03 million. The business's revenue for the quarter was up 105.6% compared to the same quarter last year. Analysts anticipate that D-Wave Quantum Inc. will post -0.41 earnings per share for the current fiscal year.

Insider Buying and Selling at D-Wave Quantum

In other news, Director John D. Dilullo sold 8,000 shares of D-Wave Quantum stock in a transaction on Monday, September 15th. The stock was sold at an average price of $17.93, for a total value of $143,440.00. Following the completion of the transaction, the director directly owned 36,295 shares in the company, valued at approximately $650,769.35. The trade was a 18.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Alan E. Baratz sold 168,102 shares of the stock in a transaction dated Thursday, November 13th. The stock was sold at an average price of $23.17, for a total transaction of $3,894,923.34. Following the completion of the sale, the chief executive officer directly owned 2,633,163 shares in the company, valued at approximately $61,010,386.71. The trade was a 6.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 1,379,813 shares of company stock worth $36,891,986. 3.20% of the stock is owned by insiders.

Institutional Trading of D-Wave Quantum

A number of institutional investors and hedge funds have recently modified their holdings of QBTS. Ancora Advisors LLC bought a new position in shares of D-Wave Quantum during the 3rd quarter valued at approximately $30,000. Financial Consulate Inc. bought a new position in D-Wave Quantum in the 3rd quarter valued at $31,000. Kelleher Financial Advisors bought a new position in D-Wave Quantum in the third quarter worth approximately $40,000. Larson Financial Group LLC raised its holdings in shares of D-Wave Quantum by 1,754.0% in the third quarter. Larson Financial Group LLC now owns 1,854 shares of the company's stock valued at $46,000 after acquiring an additional 1,754 shares in the last quarter. Finally, GAMMA Investing LLC boosted its position in D-Wave Quantum by 34.6% during the 3rd quarter. GAMMA Investing LLC now owns 1,874 shares of the company's stock valued at $46,000 after acquiring an additional 482 shares in the last quarter. 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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