D-Wave Quantum (NYSE:QBTS) Trading Down 4.5% - Time to Sell?

Key Points

• D-Wave Quantum shares fell 4.5% on Tuesday, trading as low as $17.74 and closing near $18.20, below the prior close of $19.06.
• Analyst sentiment remains mostly positive, with 14 Buy ratings, 2 Hold ratings, and 1 Sell rating; the consensus price target is $34.67 despite some recent target cuts.
• Latest earnings were mixed: the company beat EPS expectations with a loss of $0.05 per share, but revenue of $2.86 million came in below forecasts and was down 80.9% year over year.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s stock price dropped 4.5% during trading on Tuesday . The company traded as low as $17.74 and last traded at $18.1980. Approximately 21,438,989 shares were traded during mid-day trading, a decline of 27% from the average daily volume of 29,494,238 shares. The stock had previously closed at $19.06.

Analyst Ratings Changes

A number of brokerages have recently weighed in on QBTS. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $40.00 price objective on shares of D-Wave Quantum in a research note on Wednesday, May 13th. Jefferies Financial Group reaffirmed a "buy" rating on shares of D-Wave Quantum in a research note on Tuesday, May 12th. Roth Mkm dropped their price objective on D-Wave Quantum from $40.00 to $30.00 and set a "buy" rating for the company in a research note on Friday, February 27th. Northland Securities began coverage on D-Wave Quantum in a research note on Monday, April 20th. They issued a "market perform" rating and a $22.00 price objective for the company. Finally, Weiss Ratings cut D-Wave Quantum from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Wednesday, April 29th. Fourteen investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $34.67.

D-Wave Quantum Price Performance

The stock has a market capitalization of $6.73 billion, a price-to-earnings ratio of -16.10 and a beta of 1.95. The company has a debt-to-equity ratio of 0.03, a quick ratio of 21.31 and a current ratio of 21.41. The company has a 50 day moving average of $18.06 and a 200 day moving average of $22.47.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings data on Tuesday, May 12th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.08) by $0.03. The business had revenue of $2.86 million during the quarter, compared to analysts' expectations of $4.19 million. D-Wave Quantum had a negative return on equity of 44.06% and a negative net margin of 2,957.23%.The business's quarterly revenue was down 80.9% compared to the same quarter last year. During the same quarter last year, the business posted ($0.02) EPS. As a group, equities research analysts anticipate that D-Wave Quantum Inc. will post -0.44 EPS for the current year.

Insider Activity

In other D-Wave Quantum news, Director Rohit Ghai sold 10,000 shares of the business's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $17.62, for a total transaction of $176,200.00. Following the completion of the transaction, the director owned 27,778 shares in the company, valued at $489,448.36. The trade was a 26.47% decrease in their position. 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 that occurred on Monday, April 20th. The stock was sold at an average price of $21.35, for a total transaction of $65,544.50. Following the transaction, the vice president owned 643,678 shares of the company's stock, valued at $13,742,525.30. This trade represents 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 quarter, insiders have sold 31,776 shares of company stock worth $574,571. Insiders own 3.20% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in QBTS. Vanguard Group Inc. boosted its position in shares of D-Wave Quantum by 41.2% during the 3rd quarter. Vanguard Group Inc. now owns 38,454,869 shares of the company's stock worth $950,220,000 after acquiring an additional 11,218,255 shares in the last quarter. UBS Group AG boosted its position in shares of D-Wave Quantum by 541.6% during the 3rd quarter. UBS Group AG now owns 12,089,703 shares of the company's stock worth $298,737,000 after acquiring an additional 10,205,427 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its position in shares of D-Wave Quantum by 136,842.4% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,194,866 shares of the company's stock worth $83,546,000 after acquiring an additional 3,192,533 shares in the last quarter. Clear Street Group Inc. acquired a new position in shares of D-Wave Quantum during the 3rd quarter worth about $75,344,000. Finally, Goldman Sachs Group Inc. boosted its position in shares of D-Wave Quantum by 311.6% during the 4th quarter. Goldman Sachs Group Inc. now owns 3,548,013 shares of the company's stock worth $92,781,000 after acquiring an additional 2,685,980 shares in the last quarter. 42.47% of the stock is owned by institutional investors and hedge funds.

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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