D-Wave Quantum (NYSE:QBTS) Upgraded to Hold at Zacks Research

Key Points

• Zacks Research upgraded D‑Wave Quantum (QBTS) from a "strong sell" to a "hold" rating in its latest report.
• Analyst coverage is mixed but leans positive — 14 Buy, 2 Hold and 1 Sell with a consensus price target of $35.53 and an average rating of "Moderate Buy."
• D‑Wave missed the latest quarter's estimates, reporting EPS of ($0.09) vs. ($0.05) expected and revenue of $2.75M vs. $3.74M expected, leaving the company with large negative margins and negative return on equity.

D-Wave Quantum (NYSE:QBTS - Get Free Report) was upgraded by Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Other equities analysts have also issued reports about the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of D-Wave Quantum in a report on Friday, March 27th. TD Cowen began coverage on shares of D-Wave Quantum in a report on Thursday, February 12th. They set a "buy" rating for the company. Needham & Company LLC lowered their target price on shares of D-Wave Quantum from $48.00 to $40.00 and set a "buy" rating for the company in a report on Thursday, February 26th. Mizuho lowered their target price on shares of D-Wave Quantum from $46.00 to $40.00 and set an "outperform" rating for the company in a report on Friday, February 27th. Finally, Northland Securities began coverage on shares of D-Wave Quantum in a report on Monday, April 20th. They set a "market perform" rating and a $22.00 target price for the company. Fourteen research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. 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 Performance

D-Wave Quantum stock opened at $18.34 on Tuesday. The stock's 50 day simple moving average is $17.42 and its two-hundred day simple moving average is $23.65. The company has a debt-to-equity ratio of 0.04, a quick ratio of 42.25 and a current ratio of 42.38. The stock has a market cap of $6.78 billion, a price-to-earnings ratio of -16.67 and a beta of 1.78. D-Wave Quantum has a fifty-two week low of $6.52 and a fifty-two week high of $46.75.

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

Insider Activity

In related news, CFO John M. Markovich sold 10,706 shares of the business's stock in a transaction that occurred on 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 transaction, the chief financial officer directly owned 1,451,427 shares in the company, valued at $25,588,658.01. The trade was a 0.73% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Sophie C. Ames sold 3,070 shares of the business's stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $21.35, for a total transaction of $65,544.50. Following the completion of the transaction, the vice president owned 643,678 shares of the company's stock, valued at approximately $13,742,525.30. The trade was a 0.47% 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. Insiders have sold 31,776 shares of company stock valued at $574,571 in the last quarter. Insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On D-Wave Quantum

A number of hedge funds have recently added to or reduced their stakes in the company. Blue Bell Private Wealth Management LLC raised its holdings in D-Wave Quantum by 5.3% in the 3rd quarter. Blue Bell Private Wealth Management LLC now owns 9,901 shares of the company's stock worth $245,000 after acquiring an additional 500 shares during the last quarter. Huntington National Bank raised its stake in D-Wave Quantum by 17.9% during the 3rd quarter. Huntington National Bank now owns 3,300 shares of the company's stock valued at $82,000 after buying an additional 500 shares during the last quarter. Sigma Planning Corp raised its stake in D-Wave Quantum by 3.6% during the 4th quarter. Sigma Planning Corp now owns 16,329 shares of the company's stock valued at $431,000 after buying an additional 560 shares during the last quarter. AlphaStar Capital Management LLC raised its stake in D-Wave Quantum by 2.2% during the 4th quarter. AlphaStar Capital Management LLC now owns 27,063 shares of the company's stock valued at $708,000 after buying an additional 592 shares during the last quarter. Finally, Noble Wealth Management PBC raised its stake in D-Wave Quantum by 6.7% during the 4th quarter. Noble Wealth Management PBC now owns 9,600 shares of the company's stock valued at $251,000 after buying an additional 600 shares during the last quarter. 42.47% of the stock is currently 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.

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