D-Wave Quantum (NYSE:QBTS) Trading Down 4.1% - Should You Sell?

Key Points

• Shares were down 4.1% on Friday, last trading around $18.52 after an intraday low of $17.90, with volume of 23.7M shares (about 22% below the average); the stock has a market cap of $6.85B and 50/200-day moving averages of $17.48/$24.18.
• Analysts maintain a consensus rating of “Moderate Buy” (14 Buys, 1 Hold, 2 Sells) with a consensus price target of $35.53.
• D-Wave recently missed quarterly EPS (reported -$0.09 vs. -$0.05 expected) and posted very weak profitability (negative net margin and negative ROE), with analysts projecting -$0.44 EPS for the year.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) shares traded down 4.1% on Friday . The company traded as low as $17.90 and last traded at $18.5160. 23,747,059 shares were traded during trading, a decline of 22% from the average session volume of 30,264,168 shares. The stock had previously closed at $19.31.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the stock. Rosenblatt Securities reaffirmed a "buy" rating and set a $43.00 target price on shares of D-Wave Quantum in a research note on Wednesday, January 28th. Wall Street Zen lowered shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a research note on Saturday, February 7th. Benchmark reaffirmed a "buy" rating and set a $35.00 target price on shares of D-Wave Quantum in a research note on Friday, January 23rd. Canaccord Genuity Group set a $43.00 target price on shares of D-Wave Quantum in a research note on Thursday, January 29th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of D-Wave Quantum in a research note on Friday, March 27th. Fourteen research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $35.53.

D-Wave Quantum Price Performance

The company has a debt-to-equity ratio of 0.04, a current ratio of 42.38 and a quick ratio of 42.25. The firm's 50 day moving average is $17.48 and its 200 day moving average is $24.18. The firm has a market cap of $6.85 billion, a P/E ratio of -16.83 and a beta of 1.78.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported ($0.09) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.04). D-Wave Quantum had a negative return on equity of 58.58% and a negative net margin of 1,444.10%.The business had revenue of $2.75 million for the quarter, compared to the consensus estimate of $3.74 million. D-Wave Quantum's quarterly revenue was up 21.7% compared to the same quarter last year. As a group, analysts anticipate that D-Wave Quantum Inc. will post -0.44 earnings per share for the current year.

Insider Buying and Selling at D-Wave Quantum

In related news, Director Rohit Ghai sold 10,000 shares of the business's stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $17.62, for a total transaction of $176,200.00. Following the sale, the director owned 27,778 shares of the company's stock, valued at $489,448.36. The trade was a 26.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Sophie C. Ames sold 3,070 shares of the business's stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $21.35, for a total transaction of $65,544.50. Following the sale, the vice president directly owned 643,678 shares in the company, valued at $13,742,525.30. The trade was a 0.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 31,776 shares of company stock worth $574,571. Insiders own 3.20% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Root Financial Partners LLC raised its holdings in D-Wave Quantum by 388.0% in the fourth quarter. Root Financial Partners LLC now owns 976 shares of the company's stock worth $26,000 after buying an additional 776 shares during the last quarter. Kemnay Advisory Services Inc. purchased a new position in D-Wave Quantum in the fourth quarter worth about $28,000. EverSource Wealth Advisors LLC raised its holdings in D-Wave Quantum by 267.7% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company's stock worth $30,000 after buying an additional 838 shares during the last quarter. Mcguire Capital Advisors Inc. purchased a new position in D-Wave Quantum in the fourth quarter worth about $31,000. Finally, Ancora Advisors LLC purchased a new position in D-Wave Quantum in the third quarter worth about $30,000. 42.47% of the stock is owned by hedge funds and other institutional investors.

About D-Wave Quantum

D-Wave Quantum Inc NYSE: QBTS develops and provides quantum computing systems, software and services focused on quantum annealing technology. Headquartered in Burnaby, British Columbia, D-Wave designs specialized processors that leverage quantum mechanics to solve complex optimization and sampling problems. Since its founding in 1999 by physicists including Geordie Rose, the company has pursued the development of commercially viable quantum hardware and accompanying software tools.

The company's product portfolio centers on its quantum annealers, which are complemented by hybrid solvers that integrate classical and quantum computing resources.

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