D-Wave Quantum (NYSE:QBTS) Trading 3% Higher - Here's Why

Key Points

• D-Wave Quantum shares rose 3% on Friday, trading as high as $22.67, though volume was below normal at about 20.0 million shares versus a 29.5 million average.
• Analysts remain broadly positive despite recent price-target cuts, with 14 Buy ratings, 2 Holds, and 1 Sell; the consensus target is $35.53, well above the current price.
• Recent earnings missed expectations, as the company reported a loss of $0.09 per share on $2.75 million in revenue, both below analyst estimates, even though revenue grew 21.7% year over year.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price traded up 3% on Friday . The company traded as high as $22.67 and last traded at $22.6470. 20,026,429 shares traded hands during trading, a decline of 32% from the average session volume of 29,490,625 shares. The stock had previously closed at $21.99.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the company. Roth Mkm cut their price target on D-Wave Quantum from $40.00 to $30.00 and set a "buy" rating on the stock in a report on Friday, February 27th. Mizuho decreased their price objective on D-Wave Quantum from $46.00 to $40.00 and set an "outperform" rating for the company in a research note on Friday, February 27th. Canaccord Genuity Group set a $43.00 price objective on D-Wave Quantum in a research report on Thursday, January 29th. Benchmark reiterated a "buy" rating and issued a $35.00 target price on shares of D-Wave Quantum in a research note on Friday, January 23rd. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $43.00 target price on shares of D-Wave Quantum in a report on Wednesday, January 28th. Fourteen analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $35.53.

D-Wave Quantum Stock Up 3.0%

The company has a 50-day moving average of $17.69 and a 200-day moving average of $22.98. The company has a market capitalization of $8.38 billion, a price-to-earnings ratio of -20.59 and a beta of 1.95. The company has a current ratio of 42.38, a quick ratio of 42.25 and a debt-to-equity ratio of 0.04.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last issued its quarterly earnings results on Thursday, February 26th. The company reported ($0.09) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.04). D-Wave Quantum had a negative return on equity of 58.58% and a negative net margin of 1,444.10%.The business had revenue of $2.75 million during the quarter, compared to analyst estimates of $3.74 million. D-Wave Quantum's revenue was up 21.7% compared to the same quarter last year. On average, equities analysts predict that D-Wave Quantum Inc. will post -0.44 earnings per share for the current fiscal year.

Insider Activity at D-Wave Quantum

In other D-Wave Quantum news, VP Sophie C. Ames sold 3,070 shares of the firm's stock in a transaction on Monday, April 20th. The shares were sold at an average price of $21.35, for a total value of $65,544.50. Following the completion of the transaction, the vice president owned 643,678 shares of the company's stock, valued at approximately $13,742,525.30. This trade represents a 0.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Rohit Ghai sold 10,000 shares of D-Wave Quantum stock in a transaction on Monday, March 16th. The stock was sold at an average price of $17.62, for a total transaction of $176,200.00. Following the sale, the director owned 27,778 shares of the company's stock, valued at $489,448.36. The trade was a 26.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 31,776 shares of company stock valued at $574,571. 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 added to or reduced their stakes in the company. Root Financial Partners LLC grew its stake in D-Wave Quantum by 388.0% during the 4th quarter. Root Financial Partners LLC now owns 976 shares of the company's stock valued at $26,000 after purchasing an additional 776 shares during the last quarter. Parallel Advisors LLC raised its stake in shares of D-Wave Quantum by 545.5% in the first quarter. Parallel Advisors LLC now owns 1,788 shares of the company's stock worth $26,000 after purchasing an additional 1,511 shares during the last quarter. Kemnay Advisory Services Inc. purchased a new position in shares of D-Wave Quantum in the fourth quarter worth about $28,000. PeakShares LLC acquired a new stake in shares of D-Wave Quantum during the first quarter worth about $29,000. Finally, EverSource Wealth Advisors LLC lifted its holdings in shares of D-Wave Quantum by 267.7% during the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company's stock worth $30,000 after purchasing an additional 838 shares during the period. Hedge funds and other institutional investors own 42.47% of the company's stock.

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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