D-Wave Quantum (NYSE:QBTS) Stock Price Up 2.3% - Time to Buy?

Key Points

• D-Wave Quantum Inc. experienced a 2.3% increase in stock price, trading as high as $18.47 during mid-day, with trading volume significantly lower than average.
• Analysts are optimistic about D-Wave Quantum, with multiple upgrades and a consensus "Buy" rating, alongside price targets ranging up to $30.00.
• Insider trading activity included significant share sales by company executives, raising concerns about ownership dilution, as insiders currently hold only 3.20% of the company's stock.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s stock price traded up 2.3% during mid-day trading on Wednesday . The stock traded as high as $18.47 and last traded at $18.08. 10,234,584 shares traded hands during trading, a decline of 85% from the average session volume of 70,298,000 shares. The stock had previously closed at $17.67.

Wall Street Analysts Forecast Growth

QBTS has been the topic of several recent analyst reports. Rosenblatt Securities initiated coverage on shares of D-Wave Quantum in a research note on Tuesday. They issued a "buy" rating and a $30.00 price target on the stock. Canaccord Genuity Group began coverage on shares of D-Wave Quantum in a research report on Wednesday, July 23rd. They issued a "buy" rating and a $20.00 target price on the stock. Cantor Fitzgerald started coverage on shares of D-Wave Quantum in a research note on Wednesday, July 2nd. They set an "overweight" rating and a $20.00 price target on the stock. Benchmark restated a "buy" rating and issued a $20.00 price objective (up previously from $14.00) on shares of D-Wave Quantum in a research note on Tuesday, June 17th. Finally, B. Riley raised their price objective on D-Wave Quantum from $20.00 to $22.00 and gave the stock a "buy" rating in a report on Wednesday, July 23rd. Ten investment analysts have rated the stock with a buy rating, According to MarketBeat, the company currently has a consensus rating of "Buy" and an average price target of $16.70.

D-Wave Quantum Stock Performance

The company has a debt-to-equity ratio of 0.15, a current ratio of 20.73 and a quick ratio of 20.61. The company has a market capitalization of $4.85 billion, a PE ratio of -27.58 and a beta of 1.40. The stock has a 50-day simple moving average of $16.74 and a 200 day simple moving average of $10.62.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last issued its quarterly earnings data on Thursday, May 8th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.03. The business had revenue of $15.00 million for the quarter, compared to the consensus estimate of $10.50 million. D-Wave Quantum had a negative return on equity of 227.95% and a negative net margin of 617.84%. Equities analysts anticipate that D-Wave Quantum Inc. will post -0.41 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO John M. Markovich sold 400,000 shares of D-Wave Quantum stock in a transaction on Wednesday, May 21st. The stock was sold at an average price of $17.30, for a total value of $6,920,000.00. Following the completion of the sale, the chief financial officer owned 1,577,944 shares of the company's stock, valued at $27,298,431.20. The trade was a 20.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Roger Biscay sold 106,626 shares of the stock in a transaction dated Thursday, June 12th. The stock was sold at an average price of $16.85, for a total value of $1,796,648.10. Following the transaction, the director owned 14,260 shares in the company, valued at $240,281. This trade represents a 88.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 1,636,796 shares of company stock valued at $27,872,091. 3.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of QBTS. Fourth Dimension Wealth LLC purchased a new stake in D-Wave Quantum in the fourth quarter valued at approximately $26,000. Reyes Financial Architecture Inc. purchased a new stake in shares of D-Wave Quantum during the 2nd quarter valued at $29,000. Parallel Advisors LLC increased its holdings 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 buying an additional 1,532 shares during the last quarter. Gables Capital Management Inc. purchased a new position in shares of D-Wave Quantum in the 2nd quarter worth $37,000. Finally, Russell Investments Group Ltd. boosted its holdings in D-Wave Quantum by 133.9% in the first quarter. Russell Investments Group Ltd. now owns 5,528 shares of the company's stock valued at $42,000 after acquiring an additional 3,165 shares during the last quarter. Institutional investors and hedge funds own 42.47% of the company's stock.

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.