D-Wave Quantum (NYSE:QBTS) Trading Down 2.5% - Here's Why

Key Points

• D-Wave Quantum's stock fell by 2.5%, closing at $24.69, with a notable decline in trading volume by 29% from its average.
• Several analysts have issued buy ratings for D-Wave Quantum, with price targets ranging from $20.00 to $33.00, reflecting strong market interest.
• The company reported a 40.9% increase in quarterly revenue year-over-year but missed EPS estimates, indicating mixed financial performance.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) dropped 2.5% during trading on Tuesday . The stock traded as low as $23.67 and last traded at $24.69. Approximately 46,084,156 shares traded hands during trading, a decline of 29% from the average daily volume of 64,752,598 shares. The stock had previously closed at $25.31.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on QBTS shares. Piper Sandler raised their target price on shares of D-Wave Quantum from $13.00 to $22.00 and gave the stock an "overweight" rating in a research note on Friday, August 8th. Rosenblatt Securities began coverage on shares of D-Wave Quantum in a report on Tuesday, July 29th. They set a "buy" rating and a $30.00 price target on the stock. Canaccord Genuity Group began coverage on shares of D-Wave Quantum in a report on Wednesday, July 23rd. They set a "buy" rating and a $20.00 price target on the stock. Roth Capital reaffirmed a "buy" rating on shares of D-Wave Quantum in a report on Friday, June 13th. Finally, B. Riley lifted their price target on shares of D-Wave Quantum from $22.00 to $33.00 and gave the company a "buy" rating in a report on Monday, September 22nd. Eleven analysts have rated the stock with a Buy rating, According to data from MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $20.27.

D-Wave Quantum Stock Performance

The company has a debt-to-equity ratio of 0.05, a quick ratio of 42.86 and a current ratio of 42.99. The business's fifty day simple moving average is $18.47 and its 200-day simple moving average is $14.37. The firm has a market capitalization of $8.44 billion, a PE ratio of -23.51 and a beta of 1.40.

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

Insider Buying and Selling at D-Wave Quantum

In other D-Wave Quantum news, Director Rohit Ghai sold 10,000 shares of the stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $17.93, for a total transaction of $179,300.00. Following the completion of the sale, the director directly owned 47,778 shares of the company's stock, valued at $856,659.54. This trade represents a 17.31% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director John D. Dilullo sold 8,000 shares of the stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $17.93, for a total value of $143,440.00. Following the transaction, the director owned 36,295 shares of the company's stock, valued at $650,769.35. This represents a 18.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 168,000 shares of company stock valued at $2,937,740 in the last three months. 3.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Reyes Financial Architecture Inc. bought a new position in shares of D-Wave Quantum during the 2nd quarter valued at approximately $29,000. Atlantic Union Bankshares Corp bought a new position in shares of D-Wave Quantum during the 2nd quarter valued at approximately $29,000. Parallel Advisors LLC boosted its position in shares of D-Wave Quantum by 227.3% during the 2nd quarter. Parallel Advisors LLC now owns 2,206 shares of the company's stock valued at $32,000 after acquiring an additional 1,532 shares during the last quarter. Gables Capital Management Inc. bought a new position in shares of D-Wave Quantum during the 2nd quarter valued at approximately $37,000. Finally, Huntington National Bank bought a new position in shares of D-Wave Quantum during the 2nd quarter valued at approximately $41,000. 42.47% of the stock is currently owned by institutional investors.

About D-Wave Quantum

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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