D-Wave Quantum (NYSE:QBTS) Trading Down 9.7% Following Insider Selling

Key Points

• D-Wave Quantum Inc. experienced a 9.7% drop in share price following insider sales, with CEO Alan E. Baratz and CFO John M. Markovich selling shares totaling over $1.7 million.
• The company reported a negative earnings per share of ($0.08), missing analyst estimates, despite revenue growth of 40.9% compared to the previous year.
• Investment analysts have given the stock an average rating of "Moderate Buy" and set an average price target of $20.27, with some firms initiating coverage at target prices ranging from $20.00 to $30.00.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price was down 9.7% during mid-day trading on Thursday after an insider sold shares in the company. The company traded as low as $39.63 and last traded at $40.45. Approximately 55,188,351 shares were traded during mid-day trading, a decline of 15% from the average daily volume of 65,248,172 shares. The stock had previously closed at $44.78.

Specifically, CEO Alan E. Baratz sold 31,369 shares of the firm's stock in a transaction that occurred on Tuesday, October 14th. The shares were sold at an average price of $43.74, for a total transaction of $1,372,080.06. Following the transaction, the chief executive officer directly owned 2,801,265 shares of the company's stock, valued at approximately $122,527,331.10. This trade represents a 1.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO John M. Markovich sold 7,994 shares of the firm's stock in a transaction that occurred on Tuesday, October 14th. The stock was sold at an average price of $43.74, for a total transaction of $349,657.56. Following the transaction, the chief financial officer directly owned 1,580,934 shares in the company, valued at approximately $69,150,053.16. This trade represents a 0.50% decrease in their ownership of the stock. The disclosure for this sale can be found here.

Analysts Set New Price Targets

QBTS has been the topic of a number of research reports. Canaccord Genuity Group started coverage on shares of D-Wave Quantum in a research report on Wednesday, July 23rd. They set a "buy" rating and a $20.00 target price on the stock. Benchmark reissued a "buy" rating and set a $20.00 price objective on shares of D-Wave Quantum in a report on Monday, August 4th. Stifel Nicolaus started coverage on shares of D-Wave Quantum in a report on Tuesday, August 5th. They set a "buy" rating and a $26.00 price objective on the stock. Rosenblatt Securities started coverage on shares of D-Wave Quantum in a report on Tuesday, July 29th. They set a "buy" rating and a $30.00 price objective on the stock. Finally, Wall Street Zen lowered shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Eleven investment analysts have rated the stock with a Buy rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $20.27.

D-Wave Quantum Stock Down 9.7%

The stock has a market capitalization of $13.83 billion, a PE ratio of -38.52 and a beta of 1.49. The company has a debt-to-equity ratio of 0.05, a current ratio of 42.99 and a quick ratio of 42.86. The business's fifty day moving average price is $22.42 and its two-hundred day moving average price is $16.40.

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

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Reyes Financial Architecture Inc. acquired a new position in shares of D-Wave Quantum during the 2nd quarter worth about $29,000. Atlantic Union Bankshares Corp acquired a new position in shares of D-Wave Quantum during the 2nd quarter worth about $29,000. Parallel Advisors LLC raised its position in shares of D-Wave Quantum by 227.3% during the 2nd quarter. Parallel Advisors LLC now owns 2,206 shares of the company's stock worth $32,000 after purchasing an additional 1,532 shares during the last quarter. Gables Capital Management Inc. acquired a new position in shares of D-Wave Quantum during the 2nd quarter worth about $37,000. Finally, Huntington National Bank acquired a new position in shares of D-Wave Quantum during the 2nd quarter worth about $41,000. 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.

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