D-Wave Quantum (NYSE:QBTS) Stock Price Up 2% - Here's Why

Key Points

• D-Wave Quantum shares rose 2% on Friday, trading as high as $30.16 on volume of about 36.1 million shares, which was above its average daily volume.
• Analyst sentiment remains broadly positive despite some lower price targets: the stock has 14 Buy ratings, 2 Holds and 1 Sell, with a consensus Moderate Buy rating and average price target of $34.67.
• The company recently reported better-than-expected EPS of -$0.05, but revenue came in below estimates at $2.86 million and fell sharply year over year; meanwhile, insiders have been selling shares, including a large sale by CFO John M. Markovich.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) rose 2% on Friday . The company traded as high as $30.16 and last traded at $30.0680. Approximately 36,065,724 shares traded hands during trading, an increase of 13% from the average daily volume of 31,998,527 shares. The stock had previously closed at $29.49.

Analyst Ratings Changes

QBTS has been the subject of a number of analyst reports. Mizuho decreased their price objective on D-Wave Quantum from $31.00 to $29.00 and set an "outperform" rating for the company in a research note on Wednesday, May 13th. Roth Mkm decreased their price objective on D-Wave Quantum from $40.00 to $30.00 and set a "buy" rating for the company in a research note on Friday, February 27th. Weiss Ratings cut D-Wave Quantum from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Wednesday, April 29th. Zacks Research upgraded D-Wave Quantum from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 28th. Finally, Rosenblatt Securities restated a "buy" rating and set a $43.00 price objective on shares of D-Wave Quantum in a research note on Wednesday, May 13th. Fourteen research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $34.67.

D-Wave Quantum Stock Up 2.0%

The company has a 50-day moving average of $19.27 and a 200-day moving average of $22.10. The company has a market capitalization of $11.12 billion, a price-to-earnings ratio of -26.61 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 announced its earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating the consensus estimate 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 period in the prior year, the company posted ($0.02) EPS. 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 -0.44 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO John M. Markovich sold 328,752 shares of the company's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $27.70, for a total transaction of $9,106,430.40. Following the transaction, the chief financial officer directly owned 1,442,820 shares of the company's stock, valued at $39,966,114. This represents a 18.56% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Rohit Ghai sold 10,000 shares of the company's stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $17.62, for a total value of $176,200.00. Following the transaction, the director directly owned 27,778 shares in the company, valued at $489,448.36. This represents a 26.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 383,553 shares of company stock valued at $10,118,016. 3.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Huntington National Bank grew its holdings in D-Wave Quantum by 17.9% during the third quarter. Huntington National Bank now owns 3,300 shares of the company's stock worth $82,000 after acquiring an additional 500 shares during the period. Sigma Planning Corp grew its holdings in D-Wave Quantum by 3.6% during the fourth quarter. Sigma Planning Corp now owns 16,329 shares of the company's stock worth $431,000 after acquiring an additional 560 shares during the period. AlphaStar Capital Management LLC grew its holdings in D-Wave Quantum by 2.2% during the fourth quarter. AlphaStar Capital Management LLC now owns 27,063 shares of the company's stock worth $708,000 after acquiring an additional 592 shares during the period. Noble Wealth Management PBC grew its holdings in D-Wave Quantum by 6.7% during the fourth quarter. Noble Wealth Management PBC now owns 9,600 shares of the company's stock worth $251,000 after acquiring an additional 600 shares during the period. Finally, Thoroughbred Financial Services LLC grew its holdings in D-Wave Quantum by 0.5% during the fourth quarter. Thoroughbred Financial Services LLC now owns 131,852 shares of the company's stock worth $3,447,000 after acquiring an additional 602 shares during the period. 42.47% of the stock is owned by institutional investors and hedge funds.

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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