D-Wave Quantum (NYSE:QBTS) Trading 18.5% Higher - Should You Buy?

Key Points

• D-Wave Quantum's stock price jumped 18.5%, reaching a high of $22.85 and trading at $22.49, with a significant increase in trading volume.
• Analysts have raised target prices for D-Wave Quantum, with several giving "buy" ratings and a consensus target of $19.27 amidst expectations of a negative earnings per share for the current fiscal year.
• CFO John M. Markovich sold 100,000 shares at $18.00 each, a transaction revealing a decrease in insider ownership even as institutional investors have significantly increased their stakes in the company.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price traded up 18.5% on Wednesday . The stock traded as high as $22.85 and last traded at $22.49. 125,596,279 shares changed hands during trading, an increase of 95% from the average session volume of 64,491,363 shares. The stock had previously closed at $18.98.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the company. Piper Sandler boosted their target price on D-Wave Quantum from $13.00 to $22.00 and gave the stock an "overweight" rating in a report on Friday, August 8th. B. Riley boosted their target price on D-Wave Quantum from $20.00 to $22.00 and gave the stock a "buy" rating in a report on Wednesday, July 23rd. Cantor Fitzgerald assumed 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 target on the stock. Stifel Nicolaus assumed coverage on shares of D-Wave Quantum in a research report on Tuesday, August 5th. They set a "buy" rating and a $26.00 price target on the stock. Finally, Rosenblatt Securities assumed coverage on shares of D-Wave Quantum in a research report on Tuesday, July 29th. They set a "buy" rating and a $30.00 price target on the stock. Eleven equities research analysts have rated the stock with a Buy rating, According to MarketBeat, D-Wave Quantum currently has a consensus rating of "Buy" and an average target price of $19.27.

D-Wave Quantum Trading Up 18.5%

The company has a debt-to-equity ratio of 0.05, a current ratio of 42.99 and a quick ratio of 42.86. The company's 50 day simple moving average is $16.87 and its 200 day simple moving average is $13.07. The firm has a market cap of $7.69 billion, a price-to-earnings ratio of -21.42 and a beta of 1.39.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported ($0.08) EPS for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.03). The firm had revenue of $3.10 million for the quarter, compared to analyst estimates 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%.The company's quarterly revenue was up 40.9% compared to the same quarter last year. As a group, research analysts expect that D-Wave Quantum Inc. will post -0.41 earnings per share for the current fiscal year.

Insider Transactions 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 value of $1,800,000.00. Following the completion of the transaction, the chief financial officer owned 1,558,753 shares in the company, valued at $28,057,554. This represents a 6.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 3.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On D-Wave Quantum

A number of institutional investors and hedge funds have recently made changes to their positions in QBTS. Bank of America Corp DE raised its holdings in shares of D-Wave Quantum by 4,912.4% in the fourth quarter. Bank of America Corp DE now owns 2,548,099 shares of the company's stock valued at $21,404,000 after buying an additional 2,497,263 shares during the last quarter. Cetera Investment Advisers increased its holdings in D-Wave Quantum by 604.8% in the fourth quarter. Cetera Investment Advisers now owns 132,119 shares of the company's stock valued at $1,110,000 after buying an additional 113,374 shares in the last quarter. D. E. Shaw & Co. Inc. purchased a new position in D-Wave Quantum in the fourth quarter valued at about $1,120,000. Deutsche Bank AG grew its position in shares of D-Wave Quantum by 35.0% in the fourth quarter. Deutsche Bank AG now owns 73,906 shares of the company's stock valued at $621,000 after purchasing an additional 19,157 shares during the last quarter. Finally, Focus Partners Wealth acquired a new stake in shares of D-Wave Quantum in the fourth quarter valued at approximately $193,000. 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.

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