D-Wave Quantum (NYSE:QBTS) Trading Down 5.6% - What's Next?

Key Points

• D-Wave Quantum shares fell 5.6% in mid-day trading, with unusually heavy volume of 54.3 million shares, well above the average session level.
• The company has recently benefited from government funding headlines, including second-year support under the U.S. Microelectronics Commons program and reports of broader federal quantum funding.
• Despite the pullback, analysts remain generally upbeat: QBTS has a Moderate Buy consensus and a $34.67 average price target, while the company’s latest earnings beat EPS expectations but missed revenue estimates.

Shares of D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) traded down 5.6% during mid-day trading on Tuesday . The stock traded as low as $26.33 and last traded at $27.74. 54,272,999 shares traded hands during mid-day trading, an increase of 71% from the average session volume of 31,706,129 shares. The stock had previously closed at $29.40.

D-Wave Quantum News Summary

Here are the key news stories impacting D-Wave Quantum this week:

• Positive Sentiment: D-Wave announced it secured second-year funding for its superconducting quantum innovation work under the U.S. Microelectronics Commons program, reinforcing government support for its hardware development efforts. Article Title
• Positive Sentiment: Multiple reports said the federal government plans to provide hundreds of millions of dollars to quantum firms, which investors see as a broader tailwind for D-Wave’s domestic foundry and technology push. Article Title
• Positive Sentiment: Commentary around QBTS pointed to record bookings and expanding system sales as signs that the business is gaining traction beyond the funding headlines. Article Title
• Neutral Sentiment: D-Wave also defended its “beyond-classical” benchmark claims, helping support the company’s technical credibility but not directly changing near-term fundamentals. Article Title
• Negative Sentiment: One report noted insider sales after the recent stock surge, which could make some investors cautious after the sharp run-up in QBTS shares. Article Title

Analysts Set New Price Targets

A number of brokerages recently weighed in on QBTS. 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. Zacks Research upgraded shares of D-Wave Quantum from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 28th. Rosenblatt Securities reiterated a "buy" rating and issued a $43.00 target price on shares of D-Wave Quantum in a research note on Wednesday, May 13th. Northland Securities started coverage on shares of D-Wave Quantum in a research report on Monday, April 20th. They set a "market perform" rating and a $22.00 price objective for the company. Finally, Weiss Ratings cut shares of D-Wave Quantum from a "sell (d-)" rating to a "sell (e+)" rating in a report on Wednesday, April 29th. Fourteen analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $34.67.

D-Wave Quantum Price Performance

The business's 50 day moving average is $18.63 and its 200-day moving average is $22.13. The firm has a market capitalization of $10.26 billion, a P/E ratio of -24.55 and a beta of 1.95. The company has a quick ratio of 21.31, a current ratio of 21.41 and a debt-to-equity ratio of 0.03.

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 analysts' consensus estimates of ($0.08) by $0.03. The business had revenue of $2.86 million for the quarter, compared to analysts' expectations of $4.19 million. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The firm's quarterly revenue was down 80.9% compared to the same quarter last year. During the same period last year, the firm posted ($0.02) earnings per share. As a group, sell-side analysts predict that D-Wave Quantum Inc. will post -0.44 EPS for the current fiscal year.

Insider Activity at D-Wave Quantum

In other D-Wave Quantum news, VP Sophie C. Ames sold 23,025 shares of the firm's stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $18.98, for a total value of $437,014.50. Following the sale, the vice president owned 596,803 shares in the company, valued at $11,327,320.94. This trade represents a 3.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Rohit Ghai sold 10,000 shares of the firm'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 sale, the director owned 27,778 shares in the company, valued at $489,448.36. This represents a 26.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 54,801 shares of company stock worth $1,011,586. Corporate insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On D-Wave Quantum

Hedge funds have recently modified their holdings of the business. Root Financial Partners LLC lifted its holdings in shares of D-Wave Quantum by 388.0% during the fourth quarter. Root Financial Partners LLC now owns 976 shares of the company's stock worth $26,000 after purchasing an additional 776 shares during the period. Parallel Advisors LLC lifted its holdings in D-Wave Quantum by 545.5% in the first quarter. Parallel Advisors LLC now owns 1,788 shares of the company's stock valued at $26,000 after buying an additional 1,511 shares during the period. Kemnay Advisory Services Inc. acquired a new position in D-Wave Quantum in the fourth quarter valued at $28,000. PeakShares LLC acquired a new position in D-Wave Quantum in the first quarter valued at $29,000. Finally, EverSource Wealth Advisors LLC lifted 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 valued at $30,000 after buying an additional 838 shares during the period. Institutional investors and hedge funds own 42.47% of the company's stock.

D-Wave Quantum Company Profile

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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