D-Wave Quantum (NYSE:QBTS) Trading Down 1.1% - Time to Sell?

Key Points

• D-Wave Quantum's stock price fell 1.1% on Thursday, closing at $15.14, with the trading volume down 86% from its average.
• Analysts have mixed views, with B. Riley and Piper Sandler raising their price targets to $22.00, while Wall Street Zen downgraded the stock from "hold" to "sell."
• The company reported a 40.9% increase in revenue year-over-year, but missed EPS expectations, noting a significant negative net margin of 1,263.92%.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s stock price traded down 1.1% on Thursday . The company traded as low as $15.06 and last traded at $15.14. 9,202,956 shares were traded during mid-day trading, a decline of 86% from the average session volume of 65,287,633 shares. The stock had previously closed at $15.30.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. B. Riley boosted their price target on shares of D-Wave Quantum from $20.00 to $22.00 and gave the stock a "buy" rating in a report on Wednesday, July 23rd. Piper Sandler boosted their price target on shares of D-Wave Quantum from $13.00 to $22.00 and gave the stock an "overweight" rating in a report on Friday, August 8th. Canaccord Genuity Group assumed coverage on shares of D-Wave Quantum in a report on Wednesday, July 23rd. They issued a "buy" rating and a $20.00 price target on the stock. Wall Street Zen downgraded shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Finally, Stifel Nicolaus assumed coverage on shares of D-Wave Quantum in a report on Tuesday, August 5th. They set a "buy" rating and a $26.00 price objective on the stock. Eleven investment 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 price target of $19.27.

D-Wave Quantum Price Performance

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 business's 50-day simple moving average is $16.67 and its 200 day simple moving average is $12.38. The firm has a market capitalization of $5.22 billion, a P/E ratio of -14.54 and a beta of 1.39.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last issued its quarterly 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). D-Wave Quantum had a negative net margin of 1,263.92% and a negative return on equity of 118.87%. The business had revenue of $3.10 million for the quarter, compared to the consensus estimate of $2.55 million. The company's quarterly revenue was up 40.9% compared to the same quarter last year. Sell-side analysts forecast that D-Wave Quantum Inc. will post -0.41 earnings per share for the current year.

Insider Activity

In other news, Director Rohit Ghai sold 43,517 shares of the stock in a transaction that occurred on Thursday, June 12th. The stock was sold at an average price of $16.80, for a total transaction of $731,085.60. Following the completion of the sale, the director owned 57,778 shares of the company's stock, valued at approximately $970,670.40. This represents a 42.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Roger Biscay sold 106,626 shares of the firm's stock in a transaction on Thursday, June 12th. The stock was sold at an average price of $16.85, for a total value of $1,796,648.10. Following the completion of the sale, the director directly owned 14,260 shares of the company's stock, valued at $240,281. The trade was a 88.20% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 378,787 shares of company stock valued at $6,389,513. Corporate insiders own 3.20% of the company's stock.

Institutional Trading of D-Wave Quantum

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. bLong Financial LLC lifted its stake in D-Wave Quantum by 2.3% in the second quarter. bLong Financial LLC now owns 24,643 shares of the company's stock worth $361,000 after acquiring an additional 551 shares during the period. Capital Advisory Group Advisory Services LLC lifted its stake in D-Wave Quantum by 3.0% in the second quarter. Capital Advisory Group Advisory Services LLC now owns 22,167 shares of the company's stock worth $325,000 after acquiring an additional 646 shares during the period. Center for Financial Planning Inc. lifted its stake in D-Wave Quantum by 23.6% in the second quarter. Center for Financial Planning Inc. now owns 3,645 shares of the company's stock worth $53,000 after acquiring an additional 695 shares during the period. Citizens Financial Group Inc. RI lifted its stake in D-Wave Quantum by 1.4% in the second quarter. Citizens Financial Group Inc. RI now owns 79,327 shares of the company's stock worth $1,161,000 after acquiring an additional 1,081 shares during the period. Finally, Baird Financial Group Inc. lifted its stake in D-Wave Quantum by 12.0% in the first quarter. Baird Financial Group Inc. now owns 12,135 shares of the company's stock worth $92,000 after acquiring an additional 1,300 shares during the period. Hedge funds and other institutional investors own 42.47% of the company's stock.

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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