D-Wave Quantum (NYSE:QBTS) Trading 12.5% Higher - Should You Buy?

Key Points

• D-Wave Quantum shares jumped 12.5% on Monday, trading as high as $27.15 on volume that was about 38% above average.
• Analysts remain broadly positive: the stock carries a Moderate Buy consensus with a $36.80 average price target, though a few firms recently trimmed or adjusted targets.
• The company’s latest quarterly results were mixed, with EPS beating estimates at a loss of $0.05 per share, but revenue of $2.86 million fell well short of expectations and dropped sharply year over year.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s stock price traded up 12.5% during trading on Monday . The company traded as high as $27.15 and last traded at $26.29. 44,699,720 shares changed hands during trading, an increase of 38% from the average session volume of 32,412,717 shares. The stock had previously closed at $23.37.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Canaccord Genuity Group cut their price target on shares of D-Wave Quantum from $43.00 to $41.00 and set a "buy" rating on the stock in a report on Wednesday, May 13th. Stifel Nicolaus set a $35.00 price target on shares of D-Wave Quantum in a report on Tuesday, June 2nd. Rosenblatt Securities restated a "buy" rating and issued a $43.00 target price on shares of D-Wave Quantum in a report on Thursday. Zacks Research upgraded shares of D-Wave Quantum from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 28th. Finally, Mizuho boosted their target price on shares of D-Wave Quantum from $29.00 to $35.00 and gave the company an "outperform" rating in a report on Monday. Fourteen analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $36.80.

D-Wave Quantum Trading Up 12.5%

The firm has a market cap of $9.72 billion, a price-to-earnings ratio of -23.27 and a beta of 2.05. The company has a debt-to-equity ratio of 0.03, a current ratio of 21.41 and a quick ratio of 21.31. The firm's fifty day moving average is $21.71 and its 200-day moving average is $22.27.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings data on Tuesday, May 12th. The company reported ($0.05) earnings per share for the quarter, beating the consensus estimate of ($0.08) by $0.03. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The firm had revenue of $2.86 million for the quarter, compared to analyst estimates of $4.19 million. During the same quarter in the prior year, the business earned ($0.02) earnings per share. The business's quarterly revenue was down 80.9% compared to the same quarter last year. Equities analysts anticipate that D-Wave Quantum Inc. will post -0.43 earnings per share for the current year.

Insider Activity at D-Wave Quantum

In other news, Director John D. Dilullo sold 7,850 shares of the company's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $24.43, for a total transaction of $191,775.50. Following the transaction, the director owned 21,310 shares in the company, valued at approximately $520,603.30. This represents a 26.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Sophie C. Ames sold 23,025 shares of the company's stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $18.98, for a total transaction of $437,014.50. Following the transaction, the vice president owned 596,803 shares in the company, valued at $11,327,320.94. This represents a 3.71% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,104,281 shares of company stock worth $29,198,153 over the last three months. 1.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On D-Wave Quantum

Several institutional investors have recently made changes to their positions in QBTS. Baird Financial Group Inc. raised its holdings in shares of D-Wave Quantum by 12.0% during the first quarter. Baird Financial Group Inc. now owns 12,135 shares of the company's stock valued at $92,000 after purchasing an additional 1,300 shares during the period. Royal Bank of Canada increased its position in shares of D-Wave Quantum by 59.8% during the first quarter. Royal Bank of Canada now owns 162,088 shares of the company's stock worth $1,231,000 after acquiring an additional 60,668 shares in the last quarter. AQR Capital Management LLC increased its position in shares of D-Wave Quantum by 201.0% during the first quarter. AQR Capital Management LLC now owns 200,765 shares of the company's stock worth $1,526,000 after acquiring an additional 134,066 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of D-Wave Quantum by 93.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,572 shares of the company's stock worth $825,000 after acquiring an additional 52,437 shares in the last quarter. Finally, NewEdge Advisors LLC increased its position in shares of D-Wave Quantum by 125.7% during the first quarter. NewEdge Advisors LLC now owns 43,786 shares of the company's stock worth $333,000 after acquiring an additional 24,382 shares in the last quarter. Institutional investors and hedge funds own 42.47% of the company's stock.

D-Wave Quantum Company Profile

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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