D-Wave Quantum (NYSE:QBTS) Trading Down 5.6% - Should You Sell?

Key Points

• D-Wave shares fell 5.6% to $17.86 on Thursday with roughly 23.8 million shares traded, about 24% below the stock's average daily volume.
• Analysts maintain a “Moderate Buy” consensus with a $36.50 average price target (14 Buy vs. 2 Sell), though several firms have recently trimmed targets and one downgraded the stock.
• The company missed the quarter with EPS of ($0.09) and revenue of $2.75M versus estimates, and insiders have been net sellers (967,466 shares sold in the last 90 days), which could pressure sentiment.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) shares were down 5.6% on Thursday . The stock traded as low as $17.67 and last traded at $17.86. Approximately 23,827,638 shares were traded during trading, a decline of 24% from the average daily volume of 31,336,641 shares. The stock had previously closed at $18.91.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on QBTS shares. Mizuho cut their target price on D-Wave Quantum from $46.00 to $40.00 and set an "outperform" rating on the stock in a research report on Friday, February 27th. Benchmark reiterated a "buy" rating and issued a $35.00 price target on shares of D-Wave Quantum in a research report on Friday, January 23rd. Evercore began coverage on D-Wave Quantum in a research note on Wednesday, December 3rd. They issued an "outperform" rating and a $44.00 price target on the stock. Jefferies Financial Group initiated coverage on D-Wave Quantum in a report on Tuesday, December 16th. They set a "buy" rating and a $45.00 price objective on the stock. Finally, Zacks Research lowered shares of D-Wave Quantum from a "hold" rating to a "strong sell" rating in a research note on Friday, March 6th. Fourteen equities research analysts have rated the stock with a Buy rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $36.50.

D-Wave Quantum Trading Down 5.6%

The company has a quick ratio of 42.25, a current ratio of 42.38 and a debt-to-equity ratio of 0.04. The firm has a market cap of $6.61 billion, a price-to-earnings ratio of -16.24 and a beta of 1.61. The company has a 50-day moving average price of $22.84 and a 200 day moving average price of $25.08.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported ($0.09) earnings per share (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 during the quarter, compared to analysts' expectations of $3.74 million. D-Wave Quantum's quarterly revenue was up 21.7% on a year-over-year basis. As a group, research analysts anticipate that D-Wave Quantum Inc. will post -0.41 earnings per share for the current fiscal year.

Insider Activity at D-Wave Quantum

In other D-Wave Quantum news, CEO Alan E. Baratz sold 35,013 shares of the company's stock in a transaction that occurred on Wednesday, January 14th. The shares were sold at an average price of $28.06, for a total value of $982,464.78. Following the transaction, the chief executive officer owned 2,598,150 shares in the company, valued at approximately $72,904,089. This represents a 1.33% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO John M. Markovich sold 9,179 shares of the stock in a transaction that occurred on Wednesday, January 14th. The stock was sold at an average price of $28.06, for a total transaction of $257,562.74. Following the completion of the sale, the chief financial officer owned 1,462,133 shares of the company's stock, valued at approximately $41,027,451.98. The trade was a 0.62% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 967,466 shares of company stock valued at $28,820,666 over the last ninety days. 3.20% of the stock is owned by company insiders.

Institutional Trading of D-Wave Quantum

Institutional investors have recently bought and sold shares of the company. Corient Private Wealth LLC grew its stake in D-Wave Quantum by 25.8% in the fourth quarter. Corient Private Wealth LLC now owns 30,797 shares of the company's stock valued at $805,000 after purchasing an additional 6,319 shares in the last quarter. Tulsa Wealth Advisors INC purchased a new stake in shares of D-Wave Quantum during the 4th quarter worth about $248,000. Caitong International Asset Management Co. Ltd raised its stake in shares of D-Wave Quantum by 16.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 111,923 shares of the company's stock worth $2,927,000 after purchasing an additional 15,675 shares in the last quarter. Tempo Wealth LLC acquired a new stake in shares of D-Wave Quantum during the 4th quarter valued at about $774,000. Finally, Walser Wealth Management Company A Ltd Liability Co bought a new stake in shares of D-Wave Quantum in the 4th quarter valued at approximately $311,000. Institutional investors and hedge funds own 42.47% of the company's stock.

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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