D-Wave Quantum (NYSE:QBTS) Trading Down 2.2% - Here's What Happened

Key Points

• D-Wave Quantum Inc. shares fell 2.2% during trading, closing at $17.95, with a significant decline in trading volume compared to average levels.
• Analysts show an overall positive sentiment with a consensus rating of "Buy" and an average target price of $16.70, with several firms setting targets as high as $20.00.
• Insiders, including CEO Alan E. Baratz, have sold significant shares recently, raising concerns as these transactions indicate a decrease in their ownership positions.

Shares of D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) traded down 2.2% during trading on Tuesday . The company traded as low as $17.98 and last traded at $17.95. 14,252,389 shares traded hands during trading, a decline of 80% from the average session volume of 70,607,813 shares. The stock had previously closed at $18.35.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on QBTS shares. B. Riley upped their price target 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. Canaccord Genuity Group began coverage on shares of 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. Benchmark restated a "buy" rating and set a $20.00 target price (up previously from $14.00) on shares of D-Wave Quantum in a research report on Tuesday, June 17th. Cantor Fitzgerald assumed coverage on shares of D-Wave Quantum in a research report on Wednesday, July 2nd. They set an "overweight" rating and a $20.00 price objective for the company. Finally, Roth Capital reiterated a "buy" rating on shares of D-Wave Quantum in a research report on Friday, June 13th. Ten analysts have rated the stock with a buy rating, According to data from MarketBeat.com, D-Wave Quantum presently has an average rating of "Buy" and an average price target of $16.70.

D-Wave Quantum Stock Up 1.7%

The business's 50 day moving average is $16.75 and its 200 day moving average is $10.49. The company has a market capitalization of $5.25 billion, a price-to-earnings ratio of -29.93 and a beta of 1.40. The company has a debt-to-equity ratio of 0.15, a quick ratio of 20.61 and a current ratio of 20.73.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings data on Thursday, May 8th. The company reported ($0.02) EPS for the quarter, beating the consensus estimate of ($0.05) by $0.03. D-Wave Quantum had a negative net margin of 617.84% and a negative return on equity of 227.95%. The business had revenue of $15.00 million during the quarter, compared to analysts' expectations of $10.50 million. Sell-side analysts anticipate that D-Wave Quantum Inc. will post -0.41 earnings per share for the current year.

Insider Transactions at D-Wave Quantum

In related news, Director Kirstjen Nielsen sold 58,644 shares of the business's stock in a transaction on Thursday, June 12th. The shares were sold at an average price of $16.21, for a total value of $950,619.24. Following the completion of the transaction, the director directly owned 132,673 shares in the company, valued at $2,150,629.33. The trade was a 30.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO John M. Markovich sold 400,000 shares of the business's stock in a transaction on Wednesday, May 21st. The shares were sold at an average price of $17.30, for a total transaction of $6,920,000.00. Following the completion of the transaction, the chief financial officer owned 1,577,944 shares of the company's stock, valued at approximately $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. Over the last 90 days, insiders sold 1,636,796 shares of company stock worth $27,872,091. 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. Vontobel Holding Ltd. boosted its position in shares of D-Wave Quantum by 786.8% during the 1st quarter. Vontobel Holding Ltd. now owns 110,850 shares of the company's stock valued at $842,000 after acquiring an additional 98,350 shares during the last quarter. Vanguard Group Inc. boosted its position in shares of D-Wave Quantum by 103.7% during the 4th quarter. Vanguard Group Inc. now owns 7,118,322 shares of the company's stock valued at $59,794,000 after acquiring an additional 3,624,407 shares during the last quarter. JPMorgan Chase & Co. boosted its position in shares of D-Wave Quantum by 20.6% during 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 during the last quarter. Bank of Montreal Can acquired a new position in shares of D-Wave Quantum during the 4th quarter valued at about $111,000. Finally, Blair William & Co. IL boosted its position in shares of D-Wave Quantum by 29.9% during the 4th quarter. Blair William & Co. IL now owns 27,935 shares of the company's stock valued at $235,000 after acquiring an additional 6,435 shares during the last quarter. 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.