D-Wave Quantum (NYSE:QBTS) Stock Price Up 6.2% - Still a Buy?

Key Points

• Shares rose 6.2% — D-Wave stock climbed to $14.59 (intraday high $15.35) on Wednesday, with ~21.7 million shares traded, below the average daily volume of ~28.3 million.
• Quarterly results missed — D-Wave reported EPS of ($0.09) vs. a ($0.05) estimate and revenue of $2.75M vs. $3.74M expected, although revenue was up 21.7% year-over-year and the company remains unprofitable with negative margins.
• Analyst and insider dynamics — The consensus is a "Moderate Buy" with an average target of $36.50 despite recent price-target cuts; insiders sold ~72,898 shares (~$1.75M) in the past three months, insiders own 3.2% and institutions own ~42.5% of the stock.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price rose 6.2% during trading on Wednesday . The stock traded as high as $15.35 and last traded at $14.5940. Approximately 21,744,825 shares changed hands during trading, a decline of 23% from the average daily volume of 28,334,895 shares. The stock had previously closed at $13.74.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Needham & Company LLC decreased their price objective on shares of D-Wave Quantum from $48.00 to $40.00 and set a "buy" rating for the company in a report on Thursday, February 26th. Wall Street Zen cut shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a report on Saturday, February 7th. Roth Mkm decreased their price objective on shares of D-Wave Quantum from $40.00 to $30.00 and set a "buy" rating for the company in a report on Friday, February 27th. Canaccord Genuity Group set a $43.00 price objective on shares of D-Wave Quantum in a report on Thursday, January 29th. Finally, Zacks Research cut shares of D-Wave Quantum from a "hold" rating to a "strong sell" rating in a report on Friday, March 6th. Fourteen research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $36.50.

D-Wave Quantum Price Performance

The firm has a market capitalization of $5.40 billion, a PE ratio of -13.27 and a beta of 1.78. The company has a debt-to-equity ratio of 0.04, a current ratio of 42.38 and a quick ratio of 42.25. The firm has a 50-day simple moving average of $18.06 and a 200-day simple moving average of $24.87.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its earnings results on Thursday, February 26th. The company reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.04). The firm had revenue of $2.75 million during the quarter, compared to analysts' expectations of $3.74 million. D-Wave Quantum had a negative return on equity of 58.58% and a negative net margin of 1,444.10%.D-Wave Quantum's revenue for the quarter was up 21.7% compared to the same quarter last year. As a group, equities analysts forecast that D-Wave Quantum Inc. will post -0.41 earnings per share for the current year.

Insider Transactions at D-Wave Quantum

In other D-Wave Quantum news, Director Rohit Ghai sold 10,000 shares of the firm's stock in a transaction dated Monday, March 16th. The stock was 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 of the company's stock, valued at approximately $489,448.36. This trade represents a 26.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO John M. Markovich sold 10,706 shares of the firm's stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $17.63, for a total value of $188,746.78. Following the completion of the transaction, the chief financial officer directly owned 1,451,427 shares in the company, valued at $25,588,658.01. The trade was a 0.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 72,898 shares of company stock valued at $1,749,054. Company insiders own 3.20% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Root Financial Partners LLC raised its stake in shares of D-Wave Quantum by 388.0% in the fourth quarter. Root Financial Partners LLC now owns 976 shares of the company's stock worth $26,000 after buying an additional 776 shares during the period. Kemnay Advisory Services Inc. bought a new position in shares of D-Wave Quantum in the fourth quarter worth about $28,000. EverSource Wealth Advisors LLC raised its stake in shares of D-Wave Quantum by 267.7% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company's stock worth $30,000 after buying an additional 838 shares during the period. Ancora Advisors LLC bought a new position in shares of D-Wave Quantum in the third quarter worth about $30,000. Finally, Financial Consulate Inc. bought a new position in shares of D-Wave Quantum in the third quarter worth about $31,000. 42.47% of the stock is owned by hedge funds and other institutional investors.

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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