D-Wave Quantum (NYSE:QBTS) Trading Down 8.7% - What's Next?

Key Points

• D-Wave Quantum shares fell 8.7% intraday to $21.21, with about 31.09 million shares traded—roughly 20% below its average daily volume.
• Analysts are broadly bullish: 13 Buy ratings, a consensus “Moderate Buy,” and an average price target of $38.21 (individual targets range roughly $35–$48).
• Fundamentals are mixed: revenue jumped 105.6% to $3.74M but the company remains unprofitable, and insiders have sold roughly 2.35 million shares (≈$65.6M) in the last 90 days, including the CEO’s 806,288-share sale.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) was down 8.7% during mid-day trading on Friday . The company traded as low as $20.70 and last traded at $21.21. Approximately 31,088,494 shares traded hands during mid-day trading, a decline of 20% from the average daily volume of 39,081,793 shares. The stock had previously closed at $23.22.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on QBTS. Williams Trading set a $35.00 target price on shares of D-Wave Quantum in a report on Monday, November 10th. Cantor Fitzgerald upped their price objective on D-Wave Quantum from $20.00 to $40.00 and gave the stock an "overweight" rating in a research note on Friday, November 7th. Mizuho started coverage on D-Wave Quantum in a research report on Thursday, December 11th. They set an "outperform" rating and a $46.00 target price for the company. Needham & Company LLC reissued a "buy" rating and issued a $48.00 price target on shares of D-Wave Quantum in a report on Thursday. Finally, Canaccord Genuity Group set a $43.00 price target on D-Wave Quantum in a research note on Thursday. Thirteen investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $38.21.

D-Wave Quantum Price Performance

The stock has a market capitalization of $7.43 billion, a PE ratio of -15.71 and a beta of 1.57. The company has a current ratio of 54.68, a quick ratio of 54.49 and a debt-to-equity ratio of 0.05. The firm's 50-day moving average price is $26.43 and its 200-day moving average price is $24.63.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last issued its quarterly earnings data on Thursday, November 6th. The company reported ($0.05) earnings per share for the quarter, topping the consensus estimate of ($0.07) by $0.02. D-Wave Quantum had a negative return on equity of 97.58% and a negative net margin of 1,651.81%.The company had revenue of $3.74 million for the quarter, compared to analysts' expectations of $3.03 million. The firm's revenue was up 105.6% compared to the same quarter last year. On average, equities analysts forecast that D-Wave Quantum Inc. will post -0.41 EPS for the current fiscal year.

Insider Activity at D-Wave Quantum

In other news, Director Rohit Ghai sold 10,000 shares of D-Wave Quantum stock in a transaction on Monday, December 15th. The stock was sold at an average price of $24.28, for a total transaction of $242,800.00. Following the completion of the sale, the director directly owned 37,778 shares in the company, valued at approximately $917,249.84. This trade represents a 20.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Alan E. Baratz sold 806,288 shares of the company's stock in a transaction dated Tuesday, November 11th. The stock was sold at an average price of $28.87, for a total transaction of $23,277,534.56. Following the completion of the transaction, the chief executive officer owned 2,801,265 shares in the company, valued at approximately $80,872,520.55. The trade was a 22.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 2,346,916 shares of company stock worth $65,591,314. Insiders own 3.20% of the company's stock.

Institutional Investors Weigh In On D-Wave Quantum

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. GAMMA Investing LLC increased its holdings in D-Wave Quantum by 34.6% during the 3rd quarter. GAMMA Investing LLC now owns 1,874 shares of the company's stock worth $46,000 after purchasing an additional 482 shares during the period. Blue Bell Private Wealth Management LLC raised its stake in shares of D-Wave Quantum by 5.3% during the 3rd quarter. Blue Bell Private Wealth Management LLC now owns 9,901 shares of the company's stock worth $245,000 after acquiring an additional 500 shares in the last quarter. Huntington National Bank increased its position in shares of D-Wave Quantum by 17.9% during the third quarter. Huntington National Bank now owns 3,300 shares of the company's stock worth $82,000 after purchasing an additional 500 shares in the last quarter. bLong Financial LLC raised its stake in D-Wave Quantum by 2.3% in the second quarter. bLong Financial LLC now owns 24,643 shares of the company's stock valued at $361,000 after buying an additional 551 shares during the last quarter. Finally, Noble Wealth Management PBC boosted its stake in D-Wave Quantum by 6.7% in the 4th quarter. Noble Wealth Management PBC now owns 9,600 shares of the company's stock worth $251,000 after purchasing an additional 600 shares in the last quarter. Institutional investors 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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