D-Wave Quantum (NYSE:QBTS) Trading Down 2.1% - Here's What Happened

Key Points

• D-Wave Quantum Inc. saw its stock decline by 2.1% on Thursday, closing at $18.25 after a day’s trading volume plummeting to 13.1 million shares, a drop of 81% from the average.
• Analysts generally favor the stock, with a consensus rating of "Moderate Buy" and a target price averaging $19.27, with notable predictions by firms such as Rosenblatt Securities setting a target at $30.00.
• The company reported a revenue increase of 40.9% year-over-year to $3.1 million, but missed EPS estimates at ($0.08), falling short of the consensus estimate of ($0.05).

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s stock price fell 2.1% on Thursday . The stock traded as low as $17.94 and last traded at $18.25. 13,107,069 shares were traded during trading, a decline of 81% from the average session volume of 68,476,320 shares. The stock had previously closed at $18.65.

Analysts Set New Price Targets

Several research firms have weighed in on QBTS. Cantor Fitzgerald began coverage on shares of D-Wave Quantum in a research report on Wednesday, July 2nd. They set an "overweight" rating and a $20.00 target price on the stock. Williams Trading set a $20.00 target price on shares of D-Wave Quantum in a research report on Wednesday, June 18th. Rosenblatt Securities began coverage on shares of D-Wave Quantum in a research report on Tuesday, July 29th. They set a "buy" rating and a $30.00 target price on the stock. B. Riley boosted their target price on shares of D-Wave Quantum from $20.00 to $22.00 and gave the stock a "buy" rating in a research report on Wednesday, July 23rd. Finally, Roth Capital reissued a "buy" rating on shares of D-Wave Quantum in a research report on Friday, June 13th. One analyst has rated the stock with a sell rating and eleven have given a buy rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $19.27.

D-Wave Quantum Price Performance

The firm's fifty day moving average price is $16.75 and its 200 day moving average price is $11.36. The firm has a market capitalization of $5.11 billion, a PE ratio of -16.64 and a beta of 1.41. The company has a current ratio of 42.99, a quick ratio of 42.86 and a debt-to-equity ratio of 0.05.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported ($0.08) earnings per share (EPS) for the quarter, missing the consensus estimate 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 firm had revenue of $3.10 million during the quarter, compared to analyst estimates of $2.55 million. The company's quarterly revenue was up 40.9% on a year-over-year basis. As a group, equities analysts forecast that D-Wave Quantum Inc. will post -0.41 earnings per share for the current year.

Insider Activity at D-Wave Quantum

In other D-Wave Quantum news, Director Kirstjen Nielsen sold 58,644 shares of the company's stock in a transaction on Thursday, June 12th. The shares were sold at an average price of $16.21, for a total transaction of $950,619.24. Following the completion of the transaction, the director directly owned 132,673 shares in the company, valued at approximately $2,150,629.33. This represents a 30.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO John M. Markovich sold 400,000 shares of the company's 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 transaction, the chief financial officer owned 1,577,944 shares of the company's stock, valued at $27,298,431.20. This represents a 20.22% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,636,796 shares of company stock valued at $27,872,091 in the last three months. Company insiders own 3.20% of the company's stock.

Institutional Investors Weigh In On D-Wave Quantum

A number of large investors have recently modified their holdings of QBTS. Fourth Dimension Wealth LLC purchased a new stake in shares of D-Wave Quantum during the fourth quarter worth $26,000. Reyes Financial Architecture Inc. purchased a new stake in shares of D-Wave Quantum during the second quarter worth $29,000. Atlantic Union Bankshares Corp purchased a new stake in shares of D-Wave Quantum during the second quarter worth $29,000. Parallel Advisors LLC grew its holdings in shares of D-Wave Quantum by 227.3% during the second quarter. Parallel Advisors LLC now owns 2,206 shares of the company's stock worth $32,000 after buying an additional 1,532 shares in the last quarter. Finally, Gables Capital Management Inc. purchased a new stake in shares of D-Wave Quantum during the second quarter worth $37,000. 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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