D-Wave Quantum (NYSE:QBTS) Trading Down 6.8% Following Insider Selling

Key Points

• D-Wave Quantum Inc. shares dropped 6.8% following insider selling by CFO John M. Markovich, who sold 100,000 shares at $18.00 each.
• Despite a decline in stock price, analysts have a consensus rating of "Moderate Buy" with a target price of $19.27.
• The company reported a revenue increase of 40.9% year-over-year, but missed earnings expectations, posting an EPS of ($0.08).

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) shares traded down 6.8% during mid-day trading on Friday following insider selling activity. The stock traded as low as $16.52 and last traded at $16.95. 22,231,120 shares traded hands during trading, a decline of 67% from the average session volume of 68,358,320 shares. The stock had previously closed at $18.18.

Specifically, CFO John M. Markovich sold 100,000 shares of D-Wave Quantum stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $18.00, for a total transaction of $1,800,000.00. Following the completion of the transaction, the chief financial officer directly owned 1,558,753 shares in the company, valued at approximately $28,057,554. This trade represents a 6.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Wall Street Analyst Weigh In

QBTS has been the subject of a number of research analyst reports. Cantor Fitzgerald began coverage on D-Wave Quantum in a report on Wednesday, July 2nd. They set an "overweight" rating and a $20.00 target price for the company. Rosenblatt Securities assumed coverage on D-Wave Quantum in a research note on Tuesday, July 29th. They set a "buy" rating and a $30.00 price objective on the stock. Williams Trading set a $20.00 price objective on D-Wave Quantum in a research report on Wednesday, June 18th. Canaccord Genuity Group started coverage on D-Wave Quantum in a report on Wednesday, July 23rd. They set a "buy" rating and a $20.00 price objective for the company. Finally, Roth Capital reissued a "buy" rating on shares of D-Wave Quantum in a research report on Friday, June 13th. One investment analyst has rated the stock with a sell rating and eleven have given a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $19.27.

D-Wave Quantum Trading Down 6.4%

The firm has a market cap of $5.82 billion, a PE ratio of -16.21 and a beta of 1.41. The stock's 50 day simple moving average is $16.75 and its 200 day simple moving average is $11.60. The company has a debt-to-equity ratio of 0.05, a quick ratio of 42.86 and a current ratio of 42.99.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported ($0.08) EPS for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.03). The company had revenue of $3.10 million during the quarter, compared to the consensus estimate of $2.55 million. D-Wave Quantum had a negative return on equity of 118.87% and a negative net margin of 1,263.92%. The company's revenue was up 40.9% compared to the same quarter last year. On average, sell-side analysts forecast that D-Wave Quantum Inc. will post -0.41 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Vontobel Holding Ltd. raised its holdings in shares of D-Wave Quantum by 786.8% during the 1st quarter. Vontobel Holding Ltd. now owns 110,850 shares of the company's stock valued at $842,000 after buying an additional 98,350 shares during the period. JPMorgan Chase & Co. boosted its stake in shares of D-Wave Quantum by 20.6% during the 4th quarter. JPMorgan Chase & Co. now owns 46,804 shares of the company's stock worth $393,000 after acquiring an additional 8,001 shares in the last quarter. Bank of Montreal Can acquired a new position in shares of D-Wave Quantum during the 4th quarter worth about $111,000. Kingswood Wealth Advisors LLC acquired a new position in D-Wave Quantum in the 1st quarter valued at approximately $167,000. Finally, Verity Asset Management Inc. bought a new stake in D-Wave Quantum during the 1st quarter worth approximately $251,000. Institutional investors and hedge funds own 42.47% of the company's stock.

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.