D-Wave Quantum (NYSE:QBTS) Trading Up 1.3% - Time to Buy?

Key Points

• Several analysts have cut price targets recently (Needham $48→$40, Roth $40→$30) but the street still shows a consensus rating of Moderate Buy with a consensus price target of $35.53.
• D-Wave missed its last quarter with EPS of ($0.09) vs. ($0.05) expected and revenue of $2.75M vs. $3.74M estimated, reporting extremely negative margins and return on equity.
• Insiders have been selling: the CFO and a director sold shares in March and insiders sold 31,776 shares (~$574,571) over the past three months, though insiders still own 3.2% of the stock.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) was up 1.3% during mid-day trading on Wednesday . The company traded as high as $18.41 and last traded at $18.3380. Approximately 18,795,750 shares were traded during mid-day trading, a decline of 37% from the average daily volume of 29,816,672 shares. The stock had previously closed at $18.11.

Analysts Set New Price Targets

Several research firms have commented on QBTS. Needham & Company LLC dropped their price target on shares of D-Wave Quantum from $48.00 to $40.00 and set a "buy" rating for the company in a research note on Thursday, February 26th. Roth Mkm dropped their price target on shares of D-Wave Quantum from $40.00 to $30.00 and set a "buy" rating for the company in a research note on Friday, February 27th. Weiss Ratings restated a "sell (d-)" rating on shares of D-Wave Quantum in a research note on Friday, March 27th. Northland Securities began coverage on shares of D-Wave Quantum in a research note on Monday, April 20th. They issued a "market perform" rating and a $22.00 price target for the company. Finally, Wall Street Zen downgraded shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a research note on Saturday, February 7th. Fourteen research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $35.53.

D-Wave Quantum Stock Up 1.3%

The company has a debt-to-equity ratio of 0.04, a current ratio of 42.38 and a quick ratio of 42.25. The company has a market cap of $6.78 billion, a price-to-earnings ratio of -16.67 and a beta of 1.78. The firm's 50 day simple moving average is $17.43 and its 200-day simple moving average is $23.69.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.04). D-Wave Quantum had a negative net margin of 1,444.10% and a negative return on equity of 58.58%. The company had revenue of $2.75 million during the quarter, compared to analyst estimates of $3.74 million. The business's revenue was up 21.7% compared to the same quarter last year. As a group, sell-side analysts anticipate that D-Wave Quantum Inc. will post -0.44 earnings per share for the current year.

Insider Activity at D-Wave Quantum

In other news, CFO John M. Markovich sold 10,706 shares of the company's stock in a transaction dated Friday, March 13th. The shares were sold at an average price of $17.63, for a total value of $188,746.78. Following the completion of the sale, the chief financial officer directly owned 1,451,427 shares of the company's stock, valued at approximately $25,588,658.01. This represents a 0.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Rohit Ghai sold 10,000 shares of the company's stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $17.62, for a total transaction of $176,200.00. Following the completion of the sale, the director directly owned 27,778 shares of the company's stock, valued at $489,448.36. The trade was a 26.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 31,776 shares of company stock worth $574,571. Insiders own 3.20% of the company's stock.

Institutional Investors Weigh In On D-Wave Quantum

Institutional investors and hedge funds have recently made changes to their positions in the business. Root Financial Partners LLC raised its holdings in shares of D-Wave Quantum by 388.0% in the fourth quarter. Root Financial Partners LLC now owns 976 shares of the company's stock valued at $26,000 after buying an additional 776 shares during the last quarter. Kemnay Advisory Services Inc. purchased a new stake in shares of D-Wave Quantum in the fourth quarter valued at about $28,000. EverSource Wealth Advisors LLC raised its holdings in shares of D-Wave Quantum by 267.7% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company's stock valued at $30,000 after buying an additional 838 shares during the last quarter. Ancora Advisors LLC purchased a new stake in shares of D-Wave Quantum in the third quarter valued at about $30,000. Finally, Financial Consulate Inc. purchased a new stake in shares of D-Wave Quantum in the third quarter valued at about $31,000. 42.47% of the stock is owned by hedge funds and other institutional investors.

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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