D-Wave Quantum (NYSE:QBTS) Trading Down 6.8% - What's Next?

Key Points

• D-Wave Quantum shares fell 6.8% on Tuesday, trading as low as $20.52 before last changing hands near $21.03. Trading volume was below average, with about 20.4 million shares exchanged.
• Analysts remain broadly bullish on QBTS despite the pullback. The stock has 14 Buy ratings, 2 Hold ratings, and 1 Sell rating, with a consensus Moderate Buy and an average price target of $36.80.
• Recent financial and insider activity shows mixed signals: the company beat EPS estimates in its latest quarter but missed revenue expectations and posted steep year-over-year revenue decline. Meanwhile, the CFO and a director sold shares in June, though the sales were tied to a trading plan and tax withholding.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price traded down 6.8% on Tuesday . The company traded as low as $20.52 and last traded at $21.0340. Approximately 20,438,639 shares changed hands during trading, a decline of 36% from the average daily volume of 31,766,309 shares. The stock had previously closed at $22.56.

Analysts Set New Price Targets

QBTS has been the topic of several recent analyst reports. Rosenblatt Securities reiterated a "buy" rating and set a $43.00 target price on shares of D-Wave Quantum in a research report on Thursday, June 11th. Jefferies Financial Group reaffirmed a "buy" rating on shares of D-Wave Quantum in a research note on Tuesday, May 12th. Cantor Fitzgerald reissued an "overweight" rating and issued a $40.00 target price on shares of D-Wave Quantum in a research report on Wednesday, May 13th. B. Riley Financial boosted their target price on shares of D-Wave Quantum from $36.00 to $40.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Finally, Mizuho increased their price target on shares of D-Wave Quantum from $29.00 to $35.00 and gave the stock an "outperform" rating in a research note on Monday, June 15th. Fourteen equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, D-Wave Quantum has a consensus rating of "Moderate Buy" and an average price target of $36.80.

D-Wave Quantum Stock Down 6.8%

The stock has a fifty day moving average price of $23.66 and a 200-day moving average price of $22.12. The firm has a market cap of $7.78 billion, a PE ratio of -18.61 and a beta of 2.11. The company has a debt-to-equity ratio of 0.03, a quick ratio of 21.31 and a current ratio of 21.41.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share for the quarter, beating analysts' consensus estimates of ($0.08) by $0.03. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The firm had revenue of $2.86 million for the quarter, compared to analysts' expectations of $4.19 million. During the same period in the previous year, the company posted ($0.02) earnings per share. D-Wave Quantum's revenue was down 80.9% compared to the same quarter last year. Research analysts expect that D-Wave Quantum Inc. will post -0.43 EPS for the current year.

Insider Transactions at D-Wave Quantum

In other D-Wave Quantum news, Director Rohit Ghai sold 13,518 shares of the firm's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $26.41, for a total value of $357,010.38. Following the transaction, the director directly owned 23,617 shares of the company's stock, valued at $623,724.97. This trade represents a 36.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Markovich sold 200,000 shares of the company's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $25.71, for a total value of $5,142,000.00. Following the completion of the sale, the chief financial officer directly owned 1,142,820 shares of the company's stock, valued at $29,381,902.20. The trade was a 14.89% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 1,363,842 shares of company stock worth $35,802,656 in the last quarter. 1.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On D-Wave Quantum

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Root Financial Partners LLC raised its stake 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 valued at $26,000 after purchasing an additional 776 shares during the period. Parallel Advisors LLC grew its holdings in D-Wave Quantum by 545.5% during the 1st quarter. Parallel Advisors LLC now owns 1,788 shares of the company's stock valued at $26,000 after purchasing an additional 1,511 shares in the last quarter. Kemnay Advisory Services Inc. acquired a new stake in D-Wave Quantum during the 4th quarter valued at $28,000. PeakShares LLC purchased a new stake in D-Wave Quantum during the 1st quarter worth $29,000. Finally, EverSource Wealth Advisors LLC lifted its holdings in D-Wave Quantum by 267.7% in the 4th quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company's stock worth $30,000 after buying an additional 838 shares in the last quarter. Hedge funds and other institutional investors 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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