D-Wave Quantum (NYSE:QBTS) Trading Up 12% - Here's Why

Key Points

• D-Wave Quantum's stock price surged 12% during trading on Friday, reaching a high of $33.28 after closing at $29.21, with an increased trading volume of 89.6 million shares.
• Analysts have set a consensus price target of $20.27 for D-Wave Quantum, with 11 analysts rating it as a "Buy" and one as a "Sell."
• Insider trading activity saw two directors significantly reducing their holdings, with a total of 168,000 shares sold valued at approximately $2.9 million over the last three months.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s stock price rose 12% during mid-day trading on Friday . The stock traded as high as $33.28 and last traded at $32.72. Approximately 89,596,381 shares were traded during trading, an increase of 38% from the average daily volume of 64,814,059 shares. The stock had previously closed at $29.21.

Analysts Set New Price Targets

A number of research firms recently issued reports on QBTS. Rosenblatt Securities started coverage on D-Wave Quantum in a report on Tuesday, July 29th. They set a "buy" rating and a $30.00 price objective for the company. Piper Sandler boosted their target price on shares of D-Wave Quantum from $13.00 to $22.00 and gave the company an "overweight" rating in a research note on Friday, August 8th. Needham & Company LLC reissued a "buy" rating on shares of D-Wave Quantum in a research report on Monday, August 4th. Cantor Fitzgerald began coverage on shares of D-Wave Quantum in a research report on Wednesday, July 2nd. They issued an "overweight" rating and a $20.00 price objective for the company. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of D-Wave Quantum in a report on Saturday, September 27th. Eleven analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, D-Wave Quantum currently has a consensus rating of "Moderate Buy" and a consensus target price of $20.27.

D-Wave Quantum Stock Up 12.0%

The company has a current ratio of 42.99, a quick ratio of 42.86 and a debt-to-equity ratio of 0.05. The company has a market capitalization of $11.19 billion, a PE ratio of -31.16 and a beta of 1.49. The business's 50-day simple moving average is $19.18 and its 200-day simple moving average is $14.79.

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

Insider Activity

In other news, Director Rohit Ghai sold 10,000 shares of D-Wave Quantum stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $17.93, for a total transaction of $179,300.00. Following the completion of the transaction, the director directly owned 47,778 shares of the company's stock, valued at $856,659.54. The trade was a 17.31% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director John D. Dilullo sold 8,000 shares of D-Wave Quantum stock in a transaction dated Monday, September 15th. The shares were sold at an average price of $17.93, for a total value of $143,440.00. Following the completion of the transaction, the director owned 36,295 shares of the company's stock, valued at approximately $650,769.35. This represents a 18.06% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 168,000 shares of company stock valued at $2,937,740 in the last three months. 3.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in QBTS. Vanguard Group Inc. boosted its stake in D-Wave Quantum by 58.5% during the first quarter. Vanguard Group Inc. now owns 11,285,043 shares of the company's stock worth $85,766,000 after buying an additional 4,166,721 shares during the period. State Street Corp boosted its holdings in D-Wave Quantum by 41.3% during the 2nd quarter. State Street Corp now owns 6,648,395 shares of the company's stock valued at $97,333,000 after acquiring an additional 1,941,762 shares during the period. Geode Capital Management LLC boosted its holdings in D-Wave Quantum by 41.6% during the 2nd quarter. Geode Capital Management LLC now owns 6,411,558 shares of the company's stock valued at $93,877,000 after acquiring an additional 1,883,109 shares during the period. Marex Group plc purchased a new position in D-Wave Quantum during the 2nd quarter valued at about $80,070,000. Finally, Penserra Capital Management LLC boosted its stake in shares of D-Wave Quantum by 80.1% in the first quarter. Penserra Capital Management LLC now owns 5,068,199 shares of the company's stock valued at $38,518,000 after purchasing an additional 2,253,741 shares during the period. 42.47% of the stock is currently owned by hedge funds and other institutional investors.

D-Wave Quantum Company Profile

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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