D-Wave Quantum's (QBTS) Overweight Rating Reiterated at Cantor Fitzgerald

Key Points

• Cantor Fitzgerald reiterated its overweight rating on D-Wave Quantum and kept a $40 price target, implying about 78.7% upside from the prior close.
• D-Wave’s latest earnings showed a smaller-than-expected loss of $0.05 per share, but revenue missed estimates at $2.86 million and fell sharply year over year.
• Sentiment remains mixed: multiple analysts still have buy/outperform views, and the company’s bookings reportedly surged nearly 2,000%, but investors are still concerned about weak sales and ongoing losses.

D-Wave Quantum (NYSE:QBTS - Get Free Report)'s stock had its "overweight" rating reissued by analysts at Cantor Fitzgerald in a report issued on Wednesday,Benzinga reports. They currently have a $40.00 target price on the stock. Cantor Fitzgerald's price objective suggests a potential upside of 78.71% from the stock's previous close.

QBTS has been the subject of a number of other research reports. Canaccord Genuity Group set a $43.00 price objective on shares of D-Wave Quantum in a research note on Thursday, January 29th. Benchmark reiterated a "buy" rating and issued a $35.00 target price on shares of D-Wave Quantum in a research report on Friday, January 23rd. Zacks Research upgraded shares of D-Wave Quantum from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 28th. Rosenblatt Securities reaffirmed a "buy" rating and set a $43.00 price objective on shares of D-Wave Quantum in a research note on Wednesday, January 28th. Finally, Jefferies Financial Group reiterated a "buy" rating on shares of D-Wave Quantum in a report on Tuesday. Fourteen research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $34.80.

D-Wave Quantum Stock Performance

Shares of NYSE QBTS opened at $22.38 on Wednesday. The stock's 50-day moving average is $17.90 and its 200 day moving average is $22.80. The stock has a market cap of $8.28 billion, a price-to-earnings ratio of -20.35 and a beta of 1.95. D-Wave Quantum has a 1-year low of $10.36 and a 1-year high of $46.75. The company has a current ratio of 42.38, a quick ratio of 42.25 and a debt-to-equity ratio of 0.04.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last issued 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. D-Wave Quantum had a negative return on equity of 58.58% and a negative net margin of 1,444.10%.The business had revenue of $2.86 million during the quarter, compared to analyst estimates of $4.19 million. During the same quarter in the prior year, the firm earned ($0.02) earnings per share. D-Wave Quantum's revenue for the quarter was down 80.9% on a year-over-year basis. On average, sell-side analysts anticipate that D-Wave Quantum will post -0.44 EPS for the current fiscal year.

Insider Activity

In other news, Director Rohit Ghai sold 10,000 shares of the stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $17.62, for a total transaction of $176,200.00. Following the completion of the sale, the director directly owned 27,778 shares in the company, valued at approximately $489,448.36. This represents a 26.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director John D. Dilullo sold 8,000 shares of the stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $18.01, for a total transaction of $144,080.00. Following the sale, the director owned 19,803 shares of the company's stock, valued at approximately $356,652.03. This represents a 28.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 31,776 shares of company stock worth $574,571. 3.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in D-Wave Quantum by 41.2% in the third quarter. Vanguard Group Inc. now owns 38,454,869 shares of the company's stock worth $950,220,000 after acquiring an additional 11,218,255 shares during the period. UBS Group AG raised its holdings in D-Wave Quantum by 541.6% in the 3rd quarter. UBS Group AG now owns 12,089,703 shares of the company's stock worth $298,737,000 after purchasing an additional 10,205,427 shares in the last quarter. Geode Capital Management LLC raised its holdings in D-Wave Quantum by 11.5% in the 4th quarter. Geode Capital Management LLC now owns 8,394,726 shares of the company's stock worth $220,085,000 after purchasing an additional 866,405 shares in the last quarter. State Street Corp raised its holdings in D-Wave Quantum by 5.3% in the 4th quarter. State Street Corp now owns 7,707,085 shares of the company's stock worth $201,540,000 after purchasing an additional 385,809 shares in the last quarter. Finally, Marex Group plc lifted its position in shares of D-Wave Quantum by 74.9% in the 4th quarter. Marex Group plc now owns 4,592,656 shares of the company's stock worth $120,098,000 after purchasing an additional 1,966,500 shares during the period. Hedge funds and other institutional investors own 42.47% of the company's stock.

D-Wave Quantum News Roundup

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

• Positive Sentiment: Needham & Company reaffirmed its Buy rating on D-Wave Quantum and raised its price target to $40, implying substantial upside from current levels. Needham & Company reaffirms Buy on D-Wave Quantum
• Positive Sentiment: D-Wave reported a smaller-than-expected quarterly loss of $0.05 per share versus estimates for a $0.08 loss, while bookings surged nearly 2,000%, highlighting strong customer demand. D-Wave earnings: revenue falls, bookings surge
• Neutral Sentiment: Mizuho lowered its price target on D-Wave Quantum from $31 to $29 but kept an Outperform rating, suggesting the firm still sees upside even after trimming expectations. Mizuho lowers target on D-Wave Quantum
• Neutral Sentiment: The company also issued a correction to its quarterly outstanding share disclosure, which looks more like a filing cleanup than a major business development. D-Wave corrects quarterly outstanding share disclosure
• Negative Sentiment: Investors remain focused on the big revenue miss: quarterly revenue came in at $2.86 million versus estimates of $4.19 million, and revenue fell sharply year over year. D-Wave earnings report
• Negative Sentiment: The company’s sales decline and continued losses are reminding traders that commercialization is still uneven, which is weighing on sentiment despite the strong bookings headline. Barrons article on D-Wave earnings

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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