D-Wave Quantum (NYSE:QBTS) Trading 11.9% Higher - Here's Why

Key Points

• D-Wave Quantum Inc. shares rose by 11.9%, reaching a trading price of $26.89, showing significant trading volume with over 101 million shares exchanged, a 57% increase from average volume.
• Analysts maintain a positive outlook, with several firms issuing a "buy" rating and setting target prices between $20.00 and $26.00, contributing to an average consensus price target of $19.27.
• Despite a revenue increase of 40.9% year-over-year, D-Wave's quarterly earnings results missed expectations, reporting earnings of ($0.08) per share against a consensus estimate of ($0.05).

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s stock price rose 11.9% during trading on Friday . The company traded as high as $27.33 and last traded at $26.89. Approximately 101,552,147 shares were traded during trading, an increase of 57% from the average daily volume of 64,791,770 shares. The stock had previously closed at $24.02.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. Roth Capital reaffirmed a "buy" rating on shares of D-Wave Quantum in a research report on Friday, June 13th. Benchmark reaffirmed a "buy" rating and set a $20.00 price target on shares of D-Wave Quantum in a research report on Monday, August 4th. Canaccord Genuity Group assumed coverage on shares of D-Wave Quantum in a research note on Wednesday, July 23rd. They issued a "buy" rating and a $20.00 price objective on the stock. Williams Trading set a $20.00 price objective on shares of D-Wave Quantum in a research report on Wednesday, June 18th. Finally, Cantor Fitzgerald began coverage on shares of D-Wave Quantum in a research report on Wednesday, July 2nd. They set an "overweight" rating and a $20.00 price objective for the company. Eleven investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus price target of $20.27.

D-Wave Quantum Stock Performance

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 stock's fifty day simple moving average is $17.40 and its two-hundred day simple moving average is $13.53.

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

Insider Activity at D-Wave Quantum

In other D-Wave Quantum news, CFO John M. Markovich sold 100,000 shares of the company's stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $18.00, for a total transaction of $1,800,000.00. Following the transaction, the chief financial officer owned 1,558,753 shares in the company, valued at approximately $28,057,554. This represents a 6.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Rohit Ghai sold 10,000 shares of the company's stock in a transaction on Monday, September 15th. The stock was sold at an average price of $17.93, for a total transaction of $179,300.00. Following the completion of the sale, the director owned 47,778 shares of the company's stock, valued at approximately $856,659.54. The trade was a 17.31% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 168,000 shares of company stock worth $2,937,740 in the last quarter. Company insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On D-Wave Quantum

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its holdings in D-Wave Quantum by 58.5% during the first quarter. Vanguard Group Inc. now owns 11,285,043 shares of the company's stock valued at $85,766,000 after purchasing an additional 4,166,721 shares during the last quarter. State Street Corp lifted its holdings in shares of D-Wave Quantum by 41.3% in the second quarter. State Street Corp now owns 6,648,395 shares of the company's stock worth $97,333,000 after buying an additional 1,941,762 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of D-Wave Quantum by 41.6% in the second quarter. Geode Capital Management LLC now owns 6,411,558 shares of the company's stock worth $93,877,000 after buying an additional 1,883,109 shares in the last quarter. Marex Group plc purchased a new stake in shares of D-Wave Quantum in the second quarter worth about $80,070,000. Finally, Penserra Capital Management LLC lifted its holdings in shares of D-Wave Quantum by 80.1% in the first quarter. Penserra Capital Management LLC now owns 5,068,199 shares of the company's stock worth $38,518,000 after buying an additional 2,253,741 shares in the last quarter. 42.47% of the stock is owned by hedge funds and other institutional investors.

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.