D-Wave Quantum (NYSE:QBTS) Trading Down 1.9% on Disappointing Earnings

Key Points

• D-Wave Quantum Inc. experienced a 1.9% drop in stock price following a disappointing earnings announcement, closing at $16.85.
• The company reported a loss of $0.08 per share, missing estimates, but achieved a revenue of $3.10 million, exceeding the consensus of $2.55 million.
• Despite the earnings miss, numerous analysts maintain a positive outlook, with twelve analysts rating the stock as a "buy" and setting target prices as high as $26.00.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) dropped 1.9% on Friday following a dissappointing earnings announcement. The stock traded as low as $16.57 and last traded at $16.85. Approximately 16,818,564 shares traded hands during mid-day trading, a decline of 76% from the average daily volume of 69,072,586 shares. The stock had previously closed at $17.17.

The company reported ($0.08) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.03). D-Wave Quantum had a negative return on equity of 227.95% and a negative net margin of 617.84%. The firm had revenue of $3.10 million during the quarter, compared to the consensus estimate of $2.55 million. The firm's revenue for the quarter was up 40.9% on a year-over-year basis.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on QBTS shares. Williams Trading set a $20.00 price objective on shares of D-Wave Quantum in a research report on Wednesday, June 18th. Benchmark reissued a "buy" rating and issued a $20.00 price target on shares of D-Wave Quantum in a report on Monday. Cantor Fitzgerald assumed coverage on shares of D-Wave Quantum in a research report on Wednesday, July 2nd. They issued an "overweight" rating and a $20.00 price objective for the company. Stifel Nicolaus started coverage on D-Wave Quantum in a research report on Tuesday. They issued a "buy" rating and a $26.00 price objective on the stock. Finally, Canaccord Genuity Group started coverage on D-Wave Quantum in a research report on Wednesday, July 23rd. They set a "buy" rating and a $20.00 target price for the company. Twelve analysts have rated the stock with a buy rating, According to MarketBeat, the company currently has an average rating of "Buy" and an average price target of $17.92.

Insider Activity

In related news, Director Rohit Ghai sold 43,517 shares of the business's stock in a transaction that occurred on Thursday, June 12th. The shares were sold at an average price of $16.80, for a total transaction of $731,085.60. Following the completion of the transaction, the director owned 57,778 shares in the company, valued at approximately $970,670.40. The trade was a 42.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO John M. Markovich sold 400,000 shares of the stock in a transaction on Wednesday, May 21st. The stock was sold at an average price of $17.30, for a total transaction of $6,920,000.00. Following the completion of the sale, the chief financial officer owned 1,577,944 shares in the company, valued at approximately $27,298,431.20. This trade represents a 20.22% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,636,796 shares of company stock valued at $27,872,091. Insiders own 3.20% of the company's stock.

Institutional Trading of D-Wave Quantum

A number of large investors have recently made changes to their positions in the company. Vontobel Holding Ltd. lifted its holdings in shares of D-Wave Quantum by 786.8% in the first quarter. Vontobel Holding Ltd. now owns 110,850 shares of the company's stock valued at $842,000 after purchasing an additional 98,350 shares in the last quarter. Vanguard Group Inc. raised its position in D-Wave Quantum by 103.7% in the 4th quarter. Vanguard Group Inc. now owns 7,118,322 shares of the company's stock valued at $59,794,000 after buying an additional 3,624,407 shares during the last quarter. JPMorgan Chase & Co. lifted its stake in D-Wave Quantum by 20.6% in the 4th quarter. JPMorgan Chase & Co. now owns 46,804 shares of the company's stock valued at $393,000 after acquiring an additional 8,001 shares in the last quarter. Bank of Montreal Can acquired a new position in D-Wave Quantum during the 4th quarter worth approximately $111,000. Finally, Kingswood Wealth Advisors LLC bought a new position in shares of D-Wave Quantum during the 1st quarter worth approximately $167,000. Institutional investors own 42.47% of the company's stock.

D-Wave Quantum Stock Down 1.3%

The company has a current ratio of 20.73, a quick ratio of 20.61 and a debt-to-equity ratio of 0.15. The company has a market capitalization of $4.95 billion, a P/E ratio of -28.13 and a beta of 1.41. The firm's 50 day moving average price is $16.70 and its two-hundred day moving average price is $11.03.

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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