D-Wave Quantum (NYSE:QBTS) Trading 6.5% Higher - What's Next?

Key Points

• D-Wave Quantum shares rose 6.5% on Tuesday, trading as high as $18.02 after closing at $16.72 the previous day, though volume was below average.
• Analysts remain broadly positive on QBTS, with 14 Buy ratings and a consensus Moderate Buy plus an average price target of $36.80, even as one firm recently downgraded the stock.
• The company’s latest quarter showed a smaller-than-expected loss of $0.05 per share, but revenue of $2.86 million missed estimates and fell sharply year over year; insiders have also been selling shares, including CEO Alan Baratz and CFO John Markovich.

Shares of D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) traded up 6.5% during trading on Tuesday . The stock traded as high as $18.02 and last traded at $17.81. 16,313,089 shares changed hands during trading, a decline of 47% from the average daily volume of 30,640,469 shares. The stock had previously closed at $16.72.

Analyst Ratings Changes

A number of research analysts have recently issued reports on QBTS shares. Weiss Ratings raised shares of D-Wave Quantum from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, June 23rd. Roth Capital increased their target price on shares of D-Wave Quantum from $30.00 to $40.00 and gave the company a "buy" rating in a research report on Tuesday, June 2nd. Canaccord Genuity Group lowered their target price on shares of D-Wave Quantum from $43.00 to $41.00 and set a "buy" rating for the company in a research note on Wednesday, May 13th. Mizuho upped their price target on D-Wave Quantum from $29.00 to $35.00 and gave the stock an "outperform" rating in a research report on Monday, June 15th. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $43.00 price objective on shares of D-Wave Quantum in a report on Thursday, June 11th. Fourteen research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $36.80.

D-Wave Quantum Stock Performance

The firm's 50-day simple moving average is $23.35 and its two-hundred day simple moving average is $21.53. The company has a market cap of $6.59 billion, a PE ratio of -15.76 and a beta of 2.11. The company has a current ratio of 21.41, a quick ratio of 21.31 and a debt-to-equity ratio of 0.03.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last posted its quarterly earnings data on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, topping 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 business had revenue of $2.86 million during the quarter, compared to the consensus estimate of $4.19 million. During the same period in the previous year, the firm posted ($0.02) earnings per share. The business's revenue for the quarter was down 80.9% compared to the same quarter last year. As a group, research analysts anticipate that D-Wave Quantum Inc. will post -0.42 earnings per share for the current fiscal year.

Insider Buying and Selling at D-Wave Quantum

In other news, CEO Alan E. Baratz sold 687,627 shares of the firm's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $26.13, for a total value of $17,967,693.51. Following the completion of the transaction, the chief executive officer directly owned 3,299,771 shares in the company, valued at $86,223,016.23. This trade represents a 17.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO John M. Markovich sold 200,000 shares of D-Wave Quantum stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $25.71, for a total value of $5,142,000.00. Following the sale, the chief financial officer directly owned 1,142,820 shares of the company's stock, valued at $29,381,902.20. This trade represents a 14.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 1,360,772 shares of company stock worth $35,737,111. 1.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On D-Wave Quantum

Institutional investors have recently bought and sold shares of the business. UBS Group AG boosted its holdings in shares of D-Wave Quantum by 541.6% in the 3rd quarter. UBS Group AG now owns 12,089,703 shares of the company's stock valued at $298,737,000 after acquiring an additional 10,205,427 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of D-Wave Quantum by 11.5% during the fourth quarter. Geode Capital Management LLC now owns 8,394,726 shares of the company's stock worth $220,085,000 after purchasing an additional 866,405 shares during the last quarter. State Street Corp lifted its position in D-Wave Quantum by 5.3% during the fourth quarter. State Street Corp now owns 7,707,085 shares of the company's stock valued at $201,540,000 after purchasing an additional 385,809 shares during the period. Marex Group plc lifted its position in D-Wave Quantum by 74.9% during the fourth quarter. Marex Group plc now owns 4,592,656 shares of the company's stock valued at $120,098,000 after purchasing an additional 1,966,500 shares during the period. Finally, Clear Street Group Inc. boosted its holdings in D-Wave Quantum by 40.4% in the fourth quarter. Clear Street Group Inc. now owns 4,281,254 shares of the company's stock valued at $111,955,000 after purchasing an additional 1,232,106 shares during the last quarter. 42.47% of the stock is owned by hedge funds and other institutional investors.

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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