D-Wave Quantum (NYSE:QBTS) Trading Down 7.1% - Time to Sell?

Key Points

• D-Wave Quantum shares fell 7.1% on Monday, trading as low as $18.52 after closing at $20.09, with volume below its recent average.
• Despite the drop, Wall Street remains broadly constructive: 14 analysts rate the stock a Buy, with an average rating of Moderate Buy and an average target price of $36.80.
• The company’s latest earnings showed a smaller-than-expected loss per share of $0.05, but revenue missed estimates and plunged 80.9% year over year; meanwhile, insiders have sold shares recently and the stock trades well below its 50-day and 200-day moving averages.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price traded down 7.1% during trading on Monday . The company traded as low as $18.52 and last traded at $18.6610. 16,932,943 shares changed hands during mid-day trading, a decline of 46% from the average daily volume of 31,304,457 shares. The stock had previously closed at $20.09.

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Stifel Nicolaus set a $35.00 price objective on D-Wave Quantum in a report on Tuesday, June 2nd. Mizuho boosted their target price on D-Wave Quantum from $29.00 to $35.00 and gave the company an "outperform" rating in a research note on Monday, June 15th. Rosenblatt Securities reaffirmed a "buy" rating and set a $43.00 price target on shares of D-Wave Quantum in a research report on Thursday, June 11th. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $40.00 price target on shares of D-Wave Quantum in a research note on Wednesday, May 13th. Finally, Zacks Research upgraded shares of D-Wave Quantum from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 28th. Fourteen research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $36.80.

D-Wave Quantum Trading Down 7.1%

The company has a market cap of $6.90 billion, a P/E ratio of -16.51 and a beta of 2.11. The company has a current ratio of 21.41, a quick ratio of 21.31 and a debt-to-equity ratio of 0.03. The business has a 50 day moving average price of $23.91 and a 200-day moving average price of $21.93.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last posted its quarterly earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.08) by $0.03. The firm had revenue of $2.86 million for the quarter, compared to analyst estimates 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 company's quarterly revenue was down 80.9% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.02) earnings per share. Analysts forecast that D-Wave Quantum Inc. will post -0.43 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Rohit Ghai sold 13,518 shares of D-Wave Quantum stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $26.41, for a total transaction of $357,010.38. Following the completion of the transaction, the director directly owned 23,617 shares in the company, valued at approximately $623,724.97. The trade was a 36.40% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Sophie C. Ames sold 23,025 shares of the business's stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $18.98, for a total value of $437,014.50. Following the transaction, the vice president directly owned 596,803 shares in the company, valued at $11,327,320.94. The trade was a 3.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 1,363,842 shares of company stock valued at $35,802,656. 1.30% of the stock is owned by insiders.

Hedge Funds Weigh In On D-Wave Quantum

Several institutional investors and hedge funds have recently modified their holdings of QBTS. Handelsbanken Fonder AB raised its position in shares of D-Wave Quantum by 23.6% in the second quarter. Handelsbanken Fonder AB now owns 133,200 shares of the company's stock valued at $3,195,000 after purchasing an additional 25,400 shares during the period. Bay Rivers Group boosted its holdings in shares of D-Wave Quantum by 62.2% during the 2nd quarter. Bay Rivers Group now owns 17,357 shares of the company's stock worth $416,000 after buying an additional 6,657 shares during the period. Thurston Springer Miller Herd & Titak Inc. grew its stake in D-Wave Quantum by 428.6% in the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 1,850 shares of the company's stock valued at $44,000 after buying an additional 1,500 shares during the last quarter. Castle Rock Wealth Management LLC acquired a new position in D-Wave Quantum in the 2nd quarter valued at about $213,000. Finally, Evanson Financial LLC acquired a new position in D-Wave Quantum in the 2nd quarter valued at about $214,000. 42.47% of the stock is currently 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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