D-Wave Quantum (NYSE:QBTS) Trading Up 4.3% - What's Next?

Key Points

• D-Wave Quantum's stock price increased by 4.3% on Friday, reaching a last traded price of $15.45, despite a significant decline in trading volume compared to its average.
• Analyst ratings for D-Wave Quantum are largely positive, with eleven analysts giving a Buy rating and an average price target of $19.27.
• The company reported a 40.9% year-over-year revenue increase in its latest quarterly earnings, although it missed the EPS consensus estimate.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price was up 4.3% on Friday . The company traded as high as $15.48 and last traded at $15.45. Approximately 12,410,915 shares traded hands during trading, a decline of 82% from the average daily volume of 67,214,203 shares. The stock had previously closed at $14.81.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on QBTS shares. Cantor Fitzgerald started coverage on D-Wave Quantum in a research report on Wednesday, July 2nd. They set an "overweight" rating and a $20.00 price objective for the company. Stifel Nicolaus started coverage on D-Wave Quantum in a research report on Tuesday, August 5th. They set a "buy" rating and a $26.00 price objective for the company. Rosenblatt Securities started coverage on D-Wave Quantum in a research report on Tuesday, July 29th. They set a "buy" rating and a $30.00 price objective for the company. Roth Capital reaffirmed a "buy" rating on shares of D-Wave Quantum in a research report on Friday, June 13th. Finally, Wall Street Zen downgraded D-Wave Quantum from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Eleven research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average price target of $19.27.

D-Wave Quantum Price Performance

The company has a 50 day moving average price of $16.64 and a 200 day moving average price of $11.79. The firm has a market cap of $5.32 billion, a PE ratio of -14.82 and a beta of 1.41. The company has a current ratio of 42.99, a quick ratio of 42.86 and a debt-to-equity ratio of 0.05.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported ($0.08) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.03). The firm had revenue of $3.10 million for the quarter, compared to analysts' expectations of $2.55 million. D-Wave Quantum had a negative return on equity of 118.87% and a negative net margin of 1,263.92%.D-Wave Quantum's revenue for the quarter was up 40.9% on a year-over-year basis. On average, sell-side analysts expect that D-Wave Quantum Inc. will post -0.41 EPS for the current year.

Insider Buying and Selling at D-Wave Quantum

In other news, CFO John M. Markovich sold 100,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $18.00, for a total transaction of $1,800,000.00. Following the completion of the transaction, the chief financial officer directly owned 1,558,753 shares of the company's stock, valued at $28,057,554. This trade represents a 6.03% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director John D. Dilullo sold 22,000 shares of the firm's stock in a transaction that occurred on Friday, June 13th. The stock was sold at an average price of $15.12, for a total transaction of $332,640.00. Following the transaction, the director directly owned 59,295 shares of the company's stock, valued at approximately $896,540.40. This trade represents a 27.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 378,787 shares of company stock worth $6,389,513. 3.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On D-Wave Quantum

Institutional investors have recently bought and sold shares of the stock. 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 D-Wave Quantum in the second quarter valued at approximately $29,000. Atlantic Union Bankshares Corp purchased a new stake in D-Wave Quantum in the second quarter valued at approximately $29,000. Parallel Advisors LLC grew its holdings in D-Wave Quantum by 227.3% in the second quarter. Parallel Advisors LLC now owns 2,206 shares of the company's stock valued at $32,000 after purchasing an additional 1,532 shares during the period. Finally, Gables Capital Management Inc. purchased a new stake in D-Wave Quantum in the second quarter valued at approximately $37,000. 42.47% of the stock is currently owned by hedge funds and other institutional investors.

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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