D-Wave Quantum (NYSE:QBTS) Trading Up 2.7% - Here's Why

Key Points

• D-Wave Quantum shares rose 2.7% on Tuesday, with heavy trading volume of nearly 48.9 million shares, well above its average daily volume.
• The stock got a boost from a tentative U.S. government award of up to $100 million, which investors see as validation of D-Wave’s quantum computing technology and a potential source of non-dilutive funding.
• Analysts remain broadly bullish: Rosenblatt and Needham both reiterated Buy ratings with price targets of $43 and $40, while MarketBeat data shows a consensus Moderate Buy rating and average target of $36.40.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s stock price was up 2.7% on Tuesday . The company traded as high as $31.12 and last traded at $29.9680. Approximately 48,875,502 shares traded hands during trading, an increase of 22% from the average daily volume of 39,939,260 shares. The stock had previously closed at $29.17.

Trending Headlines about D-Wave Quantum

Here are the key news stories impacting D-Wave Quantum this week:

• Positive Sentiment: D-Wave was tentatively awarded up to $100 million from the U.S. government, part of a broader federal push to accelerate U.S. quantum computing R&D and commercialization. Investors are viewing the award as a major validation of D-Wave’s technology and a potential source of non-dilutive funding. Article Title
• Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating on QBTS and raised its price target to $43, implying meaningful upside from current levels. Article Title
• Positive Sentiment: Needham also reiterated a Buy rating and set a $40 target, reinforcing bullish sentiment around the stock’s valuation and growth outlook. Article Title
• Positive Sentiment: D-Wave unveiled a new gate-model roadmap aimed at fault-tolerant quantum computing, signaling a broader strategy beyond its current annealing niche and helping support longer-term investor optimism. Article Title
• Neutral Sentiment: Coverage highlighting D-Wave’s inclusion in a larger federal quantum initiative and recent contract wins adds context that government support is lifting the entire sector, though it also underscores that execution will be key before the funding fully materializes. Article Title
• Neutral Sentiment: Articles discussing whether QBTS has already run too far in 2025 reflect heightened investor debate after the stock’s strong move, but do not change the core business outlook. Article Title

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on QBTS shares. Northland Securities started coverage on shares of D-Wave Quantum in a research report on Monday, April 20th. They set a "market perform" rating and a $22.00 target price for the company. Wall Street Zen lowered shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a research report on Saturday, February 7th. TD Cowen started coverage on shares of D-Wave Quantum in a research report on Thursday, February 12th. They set a "buy" rating for the company. Roth Mkm upped their target price on shares of D-Wave Quantum from $30.00 to $40.00 and gave the stock a "buy" rating in a research report on Tuesday. Finally, Weiss Ratings lowered shares of D-Wave Quantum from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Wednesday, April 29th. Fourteen research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $36.40.

D-Wave Quantum Stock Up 2.7%

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 company's 50-day simple moving average is $19.81 and its 200 day simple moving average is $22.11. The firm has a market cap of $11.09 billion, a P/E ratio of -26.52 and a beta of 2.05.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last released its earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.08) by $0.03. The firm had revenue of $2.86 million during the quarter, compared to analyst estimates of $4.19 million. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The business's revenue was down 80.9% on a year-over-year basis. During the same quarter last year, the business earned ($0.02) EPS. Research analysts anticipate that D-Wave Quantum Inc. will post -0.44 EPS for the current fiscal year.

Insider Activity

In related news, VP Sophie C. Ames sold 23,025 shares of the firm's stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $18.98, for a total value of $437,014.50. Following the transaction, the vice president owned 596,803 shares of the company's stock, valued at $11,327,320.94. This trade represents a 3.71% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Rohit Ghai sold 10,000 shares of the firm's stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $17.62, for a total transaction of $176,200.00. Following the completion of the transaction, the director directly owned 27,778 shares in the company, valued at $489,448.36. This represents a 26.47% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 383,553 shares of company stock worth $10,118,016 over the last 90 days. Insiders own 1.30% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in QBTS. Root Financial Partners LLC increased its stake in D-Wave Quantum by 388.0% in the 4th quarter. Root Financial Partners LLC now owns 976 shares of the company's stock worth $26,000 after buying an additional 776 shares during the period. Parallel Advisors LLC increased its stake in D-Wave Quantum by 545.5% in the 1st quarter. Parallel Advisors LLC now owns 1,788 shares of the company's stock worth $26,000 after buying an additional 1,511 shares during the period. Kemnay Advisory Services Inc. purchased a new position in D-Wave Quantum in the 4th quarter worth about $28,000. PeakShares LLC purchased a new position in D-Wave Quantum in the 1st quarter worth about $29,000. Finally, EverSource Wealth Advisors LLC increased its stake in D-Wave Quantum by 267.7% in the 4th quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company's stock worth $30,000 after buying an additional 838 shares during the period. Hedge funds and other institutional investors own 42.47% of the company's stock.

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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