D-Wave Quantum (NYSE:QBTS) Trading 3% Higher - What's Next?

Key Points

• Shares of D‑Wave Quantum jumped ~3% to about $14.67 on Monday on below‑average volume, trading well under its 50‑day ($17.53) and 200‑day ($24.61) moving averages and giving it a market cap of roughly $5.4 billion.
• Analysts maintain a consensus rating of Moderate Buy (14 Buys vs. 2 Sells) with a consensus price target of $36.50, even as several firms recently cut their targets.
• The company missed quarterly expectations—EPS of ($0.09) vs. ($0.05) expected and revenue of $2.75M vs. $3.74M—reported very negative margins/ROE, and insiders have been net sellers (72,898 shares sold in the last three months).

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price traded up 3% during mid-day trading on Monday . The stock traded as high as $14.79 and last traded at $14.6730. 16,307,029 shares were traded during mid-day trading, a decline of 41% from the average session volume of 27,798,432 shares. The stock had previously closed at $14.25.

Analysts Set New Price Targets

Several research analysts have issued reports on the stock. Roth Mkm decreased their target price on shares of D-Wave Quantum from $40.00 to $30.00 and set a "buy" rating for the company in a report on Friday, February 27th. Benchmark reaffirmed a "buy" rating and issued a $35.00 target price on shares of D-Wave Quantum in a report on Friday, January 23rd. Mizuho decreased their target price on shares of D-Wave Quantum from $46.00 to $40.00 and set an "outperform" rating for the company in a report on Friday, February 27th. Zacks Research cut shares of D-Wave Quantum from a "hold" rating to a "strong sell" rating in a report on Friday, March 6th. Finally, Needham & Company LLC decreased their target price on shares of D-Wave Quantum from $48.00 to $40.00 and set a "buy" rating for the company in a report on Thursday, February 26th. Fourteen research analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $36.50.

D-Wave Quantum Price Performance

The business's 50 day moving average price is $17.53 and its 200 day moving average price is $24.61. The stock has a market capitalization of $5.43 billion, a P/E ratio of -13.34 and a beta of 1.78. The company has a debt-to-equity ratio of 0.04, a current ratio of 42.38 and a quick ratio of 42.25.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings results on Thursday, February 26th. The company reported ($0.09) EPS for the quarter, missing analysts' consensus estimates 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 company had revenue of $2.75 million during the quarter, compared to the consensus estimate of $3.74 million. The company's revenue was up 21.7% compared to the same quarter last year. Sell-side analysts forecast that D-Wave Quantum Inc. will post -0.41 EPS for the current year.

Insider Activity at D-Wave Quantum

In other news, Director Rohit Ghai sold 10,000 shares of D-Wave Quantum stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $17.62, for a total value of $176,200.00. Following the completion of the sale, the director directly owned 27,778 shares in the company, valued at $489,448.36. The trade was a 26.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director John D. Dilullo sold 8,000 shares of D-Wave Quantum stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $18.01, for a total transaction of $144,080.00. Following the completion of the sale, the director owned 19,803 shares of the company's stock, valued at $356,652.03. This represents a 28.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 72,898 shares of company stock valued at $1,749,054. Insiders own 3.20% of the company's stock.

Institutional Trading of D-Wave Quantum

Several large investors have recently added to or reduced their stakes in QBTS. Baird Financial Group Inc. grew its position in 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 buying an additional 1,300 shares during the period. Royal Bank of Canada grew its position in D-Wave Quantum by 59.8% during the first quarter. Royal Bank of Canada now owns 162,088 shares of the company's stock valued at $1,231,000 after buying an additional 60,668 shares during the period. AQR Capital Management LLC grew its position in D-Wave Quantum by 201.0% during the first quarter. AQR Capital Management LLC now owns 200,765 shares of the company's stock valued at $1,526,000 after buying an additional 134,066 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in 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 valued at $825,000 after buying an additional 52,437 shares during the period. Finally, NewEdge Advisors LLC grew its position in D-Wave Quantum by 125.7% during the first quarter. NewEdge Advisors LLC now owns 43,786 shares of the company's stock valued at $333,000 after buying an additional 24,382 shares during the period. 42.47% of the stock is currently owned by institutional investors.

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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