D-Wave Quantum (NYSE:QBTS) Trading Up 9.3% - Should You Buy?

Key Points

• D-Wave Quantum shares rose 9.3% to $21.83 amid broad strength in quantum-computing stocks, supported by a new Nasdaq Verafin partnership exploring quantum applications for financial-crime detection.
• Analyst sentiment is largely positive: Wedbush initiated an Outperform rating with a $40 target, while the broader analyst consensus is Moderate Buy with a $36.80 price target.
• Significant risks remain: D-Wave reported revenue of $2.86 million, down 80.9% year over year and below expectations, remains unprofitable, and insiders have sold more than 1.36 million shares over the past 90 days.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) rose 9.3% during mid-day trading on Tuesday . The company traded as high as $21.90 and last traded at $21.83. 23,499,396 shares changed hands during trading, a decline of 22% from the average session volume of 30,071,668 shares. The stock had previously closed at $19.98.

D-Wave Quantum News Roundup

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

• Positive Sentiment: Nasdaq Verafin partnership: Nasdaq’s financial-crime technology business will work with D-Wave to explore whether quantum computing can improve the speed and effectiveness of detecting financial crime. The initiative gives D-Wave a potential enterprise use case in financial services. D-Wave and Nasdaq Verafin Announce Agreement for Quantum Computing Application Development
• Positive Sentiment: Analyst coverage: Wedbush initiated coverage with an Outperform rating and a $40 price target, implying substantial upside from the stock’s recent trading level. The endorsement may have strengthened investor enthusiasm for QBTS and the quantum-computing theme.
• Positive Sentiment: Sector momentum: Quantum stocks rallied broadly, with D-Wave reportedly gaining as much as 11% during the session alongside advances in IonQ and Rigetti. Broader strength in technology stocks also supported risk appetite. D-Wave Spikes 11% on Nasdaq Verafin Deal
• Neutral Sentiment: Early-stage commercial opportunity: The Verafin agreement is intended to evaluate and develop applications, so investors will likely look for evidence of technical progress, production deployment, or commercial contracts before it materially changes D-Wave’s financial outlook.
• Negative Sentiment: Valuation and fundamentals remain risks: Commentary noted that quantum-computing companies carry lofty valuations despite continuing losses. D-Wave’s latest reported revenue was below expectations and declined sharply year over year, underscoring the gap between strong investor expectations and current operating results.

Analyst Ratings Changes

A number of brokerages recently commented on QBTS. Rosenblatt Securities reissued a "buy" rating and issued a $43.00 price objective on shares of D-Wave Quantum in a research note on Tuesday, July 28th. Canaccord Genuity Group reduced their price target on D-Wave Quantum from $43.00 to $41.00 and set a "buy" rating for the company in a research report on Wednesday, May 13th. Mizuho lifted their price target on shares of D-Wave Quantum from $29.00 to $35.00 and gave the stock an "outperform" rating in a report on Monday, June 15th. Benchmark assumed coverage on D-Wave Quantum in a report on Monday, July 27th. They set a "buy" rating and a $30.00 price objective for the company. Finally, B. Riley Financial boosted their target price on D-Wave Quantum from $36.00 to $40.00 and gave the stock a "buy" rating in a research note on Tuesday, June 2nd. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $36.80.

D-Wave Quantum Trading Up 9.3%

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 fifty day moving average is $22.37 and its 200-day moving average is $20.76. The stock has a market cap of $8.08 billion, a PE ratio of -19.32 and a beta of 2.11.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last issued its quarterly earnings data on Tuesday, May 12th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.08) by $0.03. The business had revenue of $2.86 million during the quarter, compared to analysts' expectations of $4.19 million. D-Wave Quantum had a negative return on equity of 44.06% and a negative net margin of 2,957.23%.The company's revenue for the quarter was down 80.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.02) EPS. On average, analysts predict that D-Wave Quantum Inc. will post -0.42 earnings per share for the current fiscal year.

Insider Buying and Selling at D-Wave Quantum

In other news, CEO Alan E. Baratz sold 687,627 shares of D-Wave Quantum stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $26.13, for a total transaction of $17,967,693.51. Following the completion of the transaction, the chief executive officer directly owned 3,299,771 shares of the company's stock, valued at $86,223,016.23. The trade was a 17.25% 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, VP Sophie C. Ames sold 3,070 shares of the business's stock in a transaction on Monday, July 20th. The shares were sold at an average price of $16.95, for a total transaction of $52,036.50. Following the completion of the transaction, the vice president owned 589,009 shares of the company's stock, valued at approximately $9,983,702.55. This represents a 0.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 1,363,842 shares of company stock worth $35,789,148. 1.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On D-Wave Quantum

Hedge funds have recently modified their holdings of the company. Root Financial Partners LLC raised its holdings 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 purchasing an additional 776 shares during the period. Kemnay Advisory Services Inc. acquired a new stake in D-Wave Quantum in the fourth quarter valued at approximately $28,000. EverSource Wealth Advisors LLC increased its position 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 in the last quarter. Mcguire Capital Advisors Inc. purchased a new stake in shares of D-Wave Quantum in the fourth quarter valued at approximately $31,000. Finally, Ancora Advisors LLC purchased a new stake in shares of D-Wave Quantum in the third quarter valued at approximately $30,000. 42.47% of the stock is owned by hedge funds and other institutional investors.

About D-Wave Quantum

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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