D-Wave Quantum (NYSE:QBTS) Stock Price Up 33.5% - Should You Buy?

Key Points

• D-Wave Quantum stock surged 33.5% in mid-day trading, with volume spiking to more than 113 million shares as investors piled into the name.
• Sentiment was boosted by a Letter of Intent with the U.S. Department of Commerce for up to $100 million in CHIPS Act funding, along with reports of a broader $2 billion U.S. quantum funding package.
• Despite the rally, D-Wave still faces profitability and execution risks: the company posted a smaller-than-expected loss but missed revenue estimates, and analysts remain cautiously positive with a “Moderate Buy” consensus and average target price of $34.67.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) rose 33.5% during mid-day trading on Thursday . The company traded as high as $25.83 and last traded at $25.7710. Approximately 113,564,077 shares changed hands during trading, an increase of 275% from the average daily volume of 30,279,285 shares. The stock had previously closed at $19.30.

More D-Wave Quantum News

Here are the key news stories impacting D-Wave Quantum this week:

• Positive Sentiment: D-Wave signed a Letter of Intent with the U.S. Department of Commerce for up to $100 million in proposed CHIPS and Science Act funding, which could help accelerate U.S. quantum-computing development and support D-Wave’s scaling efforts. Article Title
• Positive Sentiment: Reports that Washington is preparing a broader $2 billion quantum funding package for nine quantum companies lifted sentiment across the entire group, including QBTS, as investors bet on government-backed demand and industry validation. Article Title
• Positive Sentiment: Several market reports noted that quantum stocks were breaking out after news of possible government stakes, with D-Wave among the biggest gainers as traders rotated into the theme. Article Title
• Positive Sentiment: Unusually heavy options activity in QBTS call contracts suggests traders are positioning for more upside, reinforcing the bullish move. Article Title
• Neutral Sentiment: Broader tech stocks were also firmer during the session, which may have added some tailwind to QBTS but was not the main driver. Article Title
• Negative Sentiment: Investors should note that D-Wave still has weak profitability and depends heavily on future commercialization; recent coverage highlighted strong revenue growth, but also ongoing losses and execution risk. Article Title

Wall Street Analysts Forecast Growth

QBTS has been the subject of a number of research analyst reports. Canaccord Genuity Group dropped their price objective on shares of D-Wave Quantum from $43.00 to $41.00 and set a "buy" rating for the company in a report on Wednesday, May 13th. Benchmark reaffirmed a "buy" rating and set a $35.00 price objective on shares of D-Wave Quantum in a report on Friday, January 23rd. Rosenblatt Securities reaffirmed a "buy" rating and set a $43.00 price objective on shares of D-Wave Quantum in a report on Wednesday, May 13th. Weiss Ratings downgraded shares of D-Wave Quantum from a "sell (d-)" rating to a "sell (e+)" rating in a report on Wednesday, April 29th. Finally, Wall Street Zen downgraded shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a report on Saturday, February 7th. Fourteen investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $34.67.

D-Wave Quantum Stock Performance

The company has a market cap of $9.53 billion, a PE ratio of -22.81 and a beta of 1.95. The business's 50-day moving average is $18.06 and its 200 day moving average is $22.24. The company has a debt-to-equity ratio of 0.03, a quick ratio of 21.31 and a current ratio of 21.41.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last issued its earnings results on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, topping analysts' consensus estimates of ($0.08) by $0.03. The company had revenue of $2.86 million for the quarter, compared to analysts' expectations of $4.19 million. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The firm's revenue was down 80.9% compared to the same quarter last year. During the same quarter last year, the company earned ($0.02) EPS. On average, equities research analysts predict that D-Wave Quantum Inc. will post -0.44 EPS for the current fiscal year.

Insider Buying and Selling at D-Wave Quantum

In related news, CFO John M. Markovich sold 10,706 shares of D-Wave Quantum 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 transaction, the chief financial officer owned 1,451,427 shares in the company, valued at $25,588,658.01. This trade represents a 0.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director John D. Dilullo sold 8,000 shares of D-Wave Quantum stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $18.01, for a total transaction of $144,080.00. Following the completion of the transaction, the director owned 19,803 shares in the company, valued at approximately $356,652.03. The trade was a 28.77% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 31,776 shares of company stock worth $574,571 in the last 90 days. 3.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On D-Wave Quantum

Hedge funds have recently modified their holdings of the company. Mutual Advisors LLC purchased a new position in shares of D-Wave Quantum during the third quarter valued at about $1,069,000. Federated Hermes Inc. increased its position in shares of D-Wave Quantum by 259,560.6% during the third quarter. Federated Hermes Inc. now owns 184,359 shares of the company's stock valued at $4,556,000 after buying an additional 184,288 shares during the period. Caitong International Asset Management Co. Ltd increased its position in shares of D-Wave Quantum by 370.9% during the third quarter. Caitong International Asset Management Co. Ltd now owns 96,248 shares of the company's stock valued at $2,378,000 after buying an additional 75,807 shares during the period. SG Americas Securities LLC increased its position in shares of D-Wave Quantum by 254.7% during the fourth quarter. SG Americas Securities LLC now owns 2,272,020 shares of the company's stock valued at $59,413,000 after buying an additional 1,631,415 shares during the period. Finally, Jones Financial Companies Lllp increased its position in shares of D-Wave Quantum by 61.2% during the third quarter. Jones Financial Companies Lllp now owns 104,661 shares of the company's stock valued at $2,801,000 after buying an additional 39,751 shares during the period. Hedge funds and other 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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