BlackRock Inc. Makes New Investment in D-Wave Quantum Inc. $QBTS

Key Points

• BlackRock acquired 33.15 million D-Wave Quantum shares worth approximately $795.2 million, giving it an 8.96% stake. Institutional investors and hedge funds collectively own 42.47% of QBTS.
• D-Wave has received positive commercial and analyst signals, including BMO’s Outperform rating and strong bookings growth, with first-half bookings reportedly up 1,120% year over year to $35.5 million.
• Risks remain significant: the company missed quarterly revenue and EPS estimates, remains unprofitable, insiders sold more than 1 million shares last quarter, and its valuation has drawn concern after a substantial share-price rise.

BlackRock Inc. acquired a new stake in D-Wave Quantum Inc. (NASDAQ:QBTS - Free Report) during the second quarter, according to its most recent filing with the SEC. The firm acquired 33,147,399 shares of the company's stock, valued at approximately $795,206,000. BlackRock Inc. owned about 8.96% of D-Wave Quantum as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors also recently made changes to their positions in the company. World Investment Advisors raised its stake in shares of D-Wave Quantum by 195.7% during the fourth quarter. World Investment Advisors now owns 41,691 shares of the company's stock worth $1,090,000 after buying an additional 27,592 shares during the last quarter. Allspring Global Investments Holdings LLC increased its stake in D-Wave Quantum by 319.3% in the first quarter. Allspring Global Investments Holdings LLC now owns 98,747 shares of the company's stock valued at $1,353,000 after purchasing an additional 75,198 shares in the last quarter. Clear Street Group Inc. raised its holdings in D-Wave Quantum by 40.4% in the fourth quarter. Clear Street Group Inc. now owns 4,281,254 shares of the company's stock worth $111,955,000 after purchasing an additional 1,232,106 shares during the period. Cibc World Market Inc. raised its holdings in D-Wave Quantum by 295.0% in the fourth quarter. Cibc World Market Inc. now owns 54,760 shares of the company's stock worth $1,432,000 after purchasing an additional 40,897 shares during the period. Finally, M&T Bank Corp bought a new position in shares of D-Wave Quantum during the fourth quarter worth $1,185,000. 42.47% of the stock is owned by institutional investors and hedge funds.

More D-Wave Quantum News

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

• Positive Sentiment: BMO initiated coverage with an Outperform rating and a $35 price target, implying roughly 85%–86% upside from recent levels. The firm highlighted D-Wave’s commercial revenue potential, providing a significant catalyst for the stock. D-Wave Quantum Stock Climbs as BMO Turns Bullish
• Positive Sentiment: NTT DOCOMO deployed a second production application powered by D-Wave to improve mobile-network planning and efficiency. The deployment expands the relationship beyond pilot projects and offers evidence that D-Wave’s technology is being used in commercial telecom operations. D-Wave Lands Second Production Telecom Application
• Positive Sentiment: D-Wave’s order and contracted-revenue indicators remain strong. First-half bookings reportedly surged 1,120% year over year to $35.5 million, while remaining performance obligations rose 668% to $40.7 million. Nearly $23 million of contracted revenue could be recognized within 12 months, and commercial customers generated 67.7% of first-half revenue. D-Wave: Demand Is Outrunning Revenue
• Neutral Sentiment: Analysts and market commentary are increasingly focused on whether D-Wave can convert customer interest, bookings and production applications into sustained revenue and eventual profitability. Some quantum stocks continue to attract attention for their growth prospects despite a tougher market. Quantum Stocks Face Reality Check
• Negative Sentiment: Valuation remains a concern. After approximately a 15-fold three-year gain, D-Wave screens as expensive on valuation measures, raising the risk that substantial future progress is already reflected in the share price. D-Wave Quantum Stock Looks Expensive
• Negative Sentiment: Quantum-computing stocks have recently faced broad sector selling, while Zacks Research downgraded D-Wave from “Strong Buy” to “Hold.” These factors could limit gains even as company-specific news improves sentiment. Quantum Stock Selloff

Analyst Ratings Changes

Several equities analysts have recently issued reports on QBTS shares. Wall Street Zen raised shares of D-Wave Quantum from a "strong sell" rating to a "sell" rating in a report on Saturday, August 8th. Cantor Fitzgerald reiterated an "overweight" rating and set a $40.00 target price on shares of D-Wave Quantum in a report on Wednesday, May 13th. Wedbush started coverage on D-Wave Quantum in a research note on Monday, August 3rd. They issued an "outperform" rating and a $40.00 target price for the company. Zacks Research downgraded D-Wave Quantum from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 18th. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $40.00 price target on shares of D-Wave Quantum in a report on Tuesday, June 2nd. Thirteen investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $36.27.

Insider Activity

In related news, CEO Alan E. Baratz sold 687,627 shares of the business's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $26.13, for a total value of $17,967,693.51. Following the completion of the transaction, the chief executive officer 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director John D. Dilullo sold 7,850 shares of the company's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $24.43, for a total transaction of $191,775.50. Following the sale, the director directly owned 21,310 shares of the company's stock, valued at approximately $520,603.30. This trade represents a 26.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 1,012,065 shares of company stock worth $26,245,703. 1.30% of the stock is owned by insiders.

D-Wave Quantum Price Performance

NASDAQ:QBTS opened at $20.39 on Friday. D-Wave Quantum Inc. has a 52-week low of $12.75 and a 52-week high of $46.75. The company has a market cap of $7.54 billion, a P/E ratio of -28.72 and a beta of 2.15. The company has a debt-to-equity ratio of 0.03, a quick ratio of 20.42 and a current ratio of 20.55. The stock's 50-day simple moving average is $20.62 and its 200 day simple moving average is $20.24.

D-Wave Quantum (NASDAQ:QBTS - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported ($0.10) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.02). The company had revenue of $3.08 million for the quarter, compared to the consensus estimate of $4.03 million. D-Wave Quantum had a negative return on equity of 26.67% and a negative net margin of 2,001.59%.The company's revenue for the quarter was down 0.6 on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.08) EPS. As a group, sell-side analysts forecast that D-Wave Quantum Inc. will post -0.46 EPS for the current fiscal year.

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.

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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