D-Wave Quantum (NYSE:QBTS) Trading 2% Higher - Time to Buy?

Key Points

• D-Wave Quantum Inc. shares traded up 2% to $15.76 amid significantly reduced volume of 8,813,762 shares compared to an average of 66,431,633 shares.
• Analysts are generally positive on the stock, with a consensus target price of $19.27 and several firms assigning buy ratings, including a target price of $30.00 from Rosenblatt Securities.
• The company reported revenues of $3.10 million for its last quarter, exceeding estimates, but missed earnings per share expectations, reporting ($0.08) compared to the consensus estimate of ($0.05).

Shares of D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) traded up 2% during trading on Wednesday . The company traded as high as $15.69 and last traded at $15.76. 8,813,762 shares were traded during trading, a decline of 87% from the average session volume of 66,431,633 shares. The stock had previously closed at $15.45.

Analyst Upgrades and Downgrades

QBTS has been the topic of several research reports. Williams Trading set a $20.00 target price on D-Wave Quantum in a research report on Wednesday, June 18th. Rosenblatt Securities started coverage on D-Wave Quantum in a report on Tuesday, July 29th. They set a "buy" rating and a $30.00 target price for the company. Cantor Fitzgerald started coverage on shares of D-Wave Quantum in a research report on Wednesday, July 2nd. They set an "overweight" rating and a $20.00 target price for the company. Roth Capital reaffirmed a "buy" rating on shares of D-Wave Quantum in a research report on Friday, June 13th. Finally, B. Riley boosted their price objective on shares of D-Wave Quantum from $20.00 to $22.00 and gave the stock a "buy" rating in a research note on Wednesday, July 23rd. Eleven analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the company currently has an average rating of "Buy" and a consensus target price of $19.27.

D-Wave Quantum Stock Performance

The firm has a market cap of $5.36 billion, a price-to-earnings ratio of -14.94 and a beta of 1.41. The company has a quick ratio of 42.86, a current ratio of 42.99 and a debt-to-equity ratio of 0.05. The company has a 50 day moving average of $16.62 and a 200 day moving average of $12.03.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last issued its quarterly earnings data 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 analyst estimates of $2.55 million. D-Wave Quantum had a negative net margin of 1,263.92% and a negative return on equity of 118.87%. The business's revenue was up 40.9% on a year-over-year basis. As a group, equities research analysts expect that D-Wave Quantum Inc. will post -0.41 EPS for the current fiscal year.

Insider Activity at D-Wave Quantum

In related news, CFO John M. Markovich sold 100,000 shares of D-Wave Quantum stock in a transaction dated Tuesday, August 12th. The stock was 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 directly owned 1,558,753 shares in the company, valued at approximately $28,057,554. This trade represents a 6.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Roger Biscay sold 106,626 shares of the company's stock in a transaction that occurred on Thursday, June 12th. The shares were sold at an average price of $16.85, for a total value of $1,796,648.10. Following the sale, the director owned 14,260 shares in the company, valued at $240,281. The trade was a 88.20% decrease in their position. The disclosure for this sale can be found here. Insiders sold 378,787 shares of company stock worth $6,389,513 over the last 90 days. Company insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On D-Wave Quantum

Hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its holdings in shares of D-Wave Quantum by 58.5% during the first quarter. Vanguard Group Inc. now owns 11,285,043 shares of the company's stock worth $85,766,000 after purchasing an additional 4,166,721 shares during the period. State Street Corp raised its stake in D-Wave Quantum by 41.3% during the second quarter. State Street Corp now owns 6,648,395 shares of the company's stock worth $97,333,000 after acquiring an additional 1,941,762 shares during the period. Geode Capital Management LLC raised its stake in D-Wave Quantum by 41.6% during the second quarter. Geode Capital Management LLC now owns 6,411,558 shares of the company's stock worth $93,877,000 after acquiring an additional 1,883,109 shares during the period. Marex Group plc bought a new position in D-Wave Quantum in the second quarter worth about $80,070,000. Finally, Penserra Capital Management LLC boosted its stake in 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 valued at $38,518,000 after acquiring an additional 2,253,741 shares during the period. Institutional investors and hedge funds own 42.47% of the company's stock.

About D-Wave Quantum

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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