D-Wave Quantum (NYSE:QBTS) Trading Down 8.9% After Insider Selling

Key Points

• D-Wave Quantum shares fell 8.9% after insider selling, with the stock trading as low as $22.35 before last changing hands around $23.53.
• Director John D. Dilullo sold 7,850 shares and CFO John M. Markovich sold 2,908 shares in separate transactions, both disclosed in SEC filings. The director’s sale was made under a pre-arranged Rule 10b5-1 plan.
• Despite the selloff, analysts remain upbeat overall: 14 rate the stock a Buy and the consensus target price is $36.40. D-Wave also recently beat EPS estimates, though revenue came in below expectations and fell sharply year over year.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price dropped 8.9% on Tuesday following insider selling activity. The company traded as low as $22.35 and last traded at $23.5250. Approximately 37,466,720 shares traded hands during trading, an increase of 15% from the average daily volume of 32,514,066 shares. The stock had previously closed at $25.83.

Specifically, Director John D. Dilullo sold 7,850 shares of the business's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $24.43, for a total transaction of $191,775.50. Following the completion of the transaction, the director owned 21,310 shares of the company's stock, valued at $520,603.30. The trade was a 26.92% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Markovich sold 2,908 shares of the company's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $31.00, for a total transaction of $90,148.00. Following the sale, the chief financial officer owned 1,439,912 shares of the company's stock, valued at $44,637,272. This trade represents a 0.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing.

Wall Street Analysts Forecast Growth

QBTS has been the topic of a number of recent analyst reports. Jefferies Financial Group reiterated a "buy" rating on shares of D-Wave Quantum in a research note on Tuesday, May 12th. TD Cowen began coverage on D-Wave Quantum in a report on Thursday, February 12th. They issued a "buy" rating on the stock. Mizuho cut their price target on D-Wave Quantum from $31.00 to $29.00 and set an "outperform" rating for the company in a report on Wednesday, May 13th. Stifel Nicolaus set a $35.00 price objective on D-Wave Quantum in a research report on Tuesday, June 2nd. Finally, Rosenblatt Securities reaffirmed a "buy" rating and set a $43.00 target price on shares of D-Wave Quantum in a research report on Tuesday, June 2nd. Fourteen research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $36.40.

D-Wave Quantum Price Performance

The company's 50 day simple moving average is $20.92 and its two-hundred day simple moving average is $22.22. The company has a debt-to-equity ratio of 0.03, a current ratio of 21.41 and a quick ratio of 21.31. The stock has a market capitalization of $8.70 billion, a P/E ratio of -20.82 and a beta of 2.05.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last released its quarterly earnings results on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, topping analysts' consensus estimates of ($0.08) by $0.03. The business had revenue of $2.86 million for the quarter, compared to analyst estimates of $4.19 million. D-Wave Quantum had a negative return on equity of 44.06% and a negative net margin of 2,957.23%.D-Wave Quantum's revenue for the quarter was down 80.9% on a year-over-year basis. During the same period in the prior year, the company earned ($0.02) EPS. As a group, equities analysts expect that D-Wave Quantum Inc. will post -0.43 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Baird Financial Group Inc. lifted its position in shares of D-Wave Quantum by 12.0% during the first quarter. Baird Financial Group Inc. now owns 12,135 shares of the company's stock worth $92,000 after purchasing an additional 1,300 shares in the last quarter. Royal Bank of Canada lifted its holdings in D-Wave Quantum by 59.8% during the 1st quarter. Royal Bank of Canada now owns 162,088 shares of the company's stock worth $1,231,000 after buying an additional 60,668 shares in the last quarter. AQR Capital Management LLC boosted its position in D-Wave Quantum by 201.0% in the 1st quarter. AQR Capital Management LLC now owns 200,765 shares of the company's stock valued at $1,526,000 after buying an additional 134,066 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in D-Wave Quantum by 93.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,572 shares of the company's stock valued at $825,000 after buying an additional 52,437 shares during the last quarter. Finally, NewEdge Advisors LLC increased its stake in shares of D-Wave Quantum by 125.7% in the 1st quarter. NewEdge Advisors LLC now owns 43,786 shares of the company's stock valued at $333,000 after buying an additional 24,382 shares during the period. Institutional investors and hedge funds 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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