Legato Capital Management LLC Takes Position in D-Wave Quantum Inc. $QBTS

Key Points

• Legato Capital Management initiated a new position in D-Wave Quantum during the fourth quarter, buying 23,095 shares worth about $604,000.
• Institutional ownership in QBTS remains significant, with large investors like Vanguard and UBS increasing their stakes and hedge funds/other institutions now holding 42.47% of the stock.
• D-Wave’s recent update showed mixed fundamentals: it beat EPS estimates in the latest quarter, but revenue came in below expectations and was down sharply year over year, even as analysts still broadly rate the stock a Moderate Buy.

Legato Capital Management LLC purchased a new stake in shares of D-Wave Quantum Inc. (NYSE:QBTS - Free Report) during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 23,095 shares of the company's stock, valued at approximately $604,000.

A number of other institutional investors have also recently made changes to their positions in the company. Vanguard Group Inc. lifted its position in shares of D-Wave Quantum by 41.2% during the 3rd quarter. Vanguard Group Inc. now owns 38,454,869 shares of the company's stock valued at $950,220,000 after buying an additional 11,218,255 shares during the last quarter. UBS Group AG lifted its position in shares of D-Wave Quantum by 541.6% during the 3rd quarter. UBS Group AG now owns 12,089,703 shares of the company's stock valued at $298,737,000 after buying an additional 10,205,427 shares during the last quarter. State Street Corp lifted its position in shares of D-Wave Quantum by 41.3% during the 2nd quarter. State Street Corp now owns 6,648,395 shares of the company's stock valued at $97,333,000 after buying an additional 1,941,762 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in shares of D-Wave Quantum by 136,842.4% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,194,866 shares of the company's stock valued at $83,546,000 after purchasing an additional 3,192,533 shares during the period. Finally, Clear Street Group Inc. bought a new stake in shares of D-Wave Quantum during the 3rd quarter valued at $75,344,000. Hedge funds and other institutional investors own 42.47% of the company's stock.

D-Wave Quantum Price Performance

Shares of NYSE QBTS opened at $27.74 on Wednesday. The firm has a market capitalization of $10.26 billion, a P/E ratio of -24.55 and a beta of 1.95. The company has a quick ratio of 21.31, a current ratio of 21.41 and a debt-to-equity ratio of 0.03. The stock's 50-day simple moving average is $18.83 and its two-hundred day simple moving average is $22.10. D-Wave Quantum Inc. has a twelve month low of $12.75 and a twelve month high of $46.75.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share for the quarter, topping analysts' consensus estimates of ($0.08) by $0.03. The business had revenue of $2.86 million for the quarter, compared to analyst estimates 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 quarterly revenue was down 80.9% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.02) EPS. As a group, equities analysts anticipate that D-Wave Quantum Inc. will post -0.44 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on QBTS. Cantor Fitzgerald reiterated an "overweight" rating and set a $40.00 price objective on shares of D-Wave Quantum in a research note on Wednesday, May 13th. Roth Mkm decreased their price objective on D-Wave Quantum from $40.00 to $30.00 and set a "buy" rating on the stock in a research note on Friday, February 27th. Mizuho decreased their price objective on D-Wave Quantum from $31.00 to $29.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 13th. Northland Securities began coverage on D-Wave Quantum in a research note on Monday, April 20th. They set a "market perform" rating and a $22.00 price objective on the stock. Finally, Canaccord Genuity Group decreased their price objective on D-Wave Quantum from $43.00 to $41.00 and set a "buy" rating on the stock in a research note on Wednesday, May 13th. Fourteen analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $34.67.

Key Headlines Impacting D-Wave Quantum

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

• Positive Sentiment: D-Wave said it signed a letter of intent with the U.S. Department of Commerce for $100 million in CHIPS and Science Act funding, reinforcing the company’s role in domestic quantum hardware development and potentially lowering funding risk. D-Wave Quantum (QBTS) and Department of Commerce Sign Letter of Intent for $100M in CHIPS and Science Act Funding
• Positive Sentiment: The company also secured second-year funding for its superconducting quantum innovation work, adding another government-backed validation of its technology roadmap. D-Wave Quantum Secures Second-Year Defense Microelectronics Funding
• Positive Sentiment: D-Wave defended its “beyond classical” benchmark claims, which may help support investor confidence in the company’s technical credibility and differentiation. D-Wave’s Quantum Supremacy Result Stands
• Neutral Sentiment: Coverage comparing QBTS with Rigetti highlighted D-Wave’s record bookings and expanding system sales, but this was more of an industry comparison than a new operational update. RGTI vs QBTS: Which Quantum Computing Stock Holds More Promise?
• Negative Sentiment: Despite the positive announcements, the stock cooled after a very strong move, and some commentary suggested the prior rally was simply pausing as traders locked in gains. Why D-Wave Quantum Stock Plummeted Today
• Negative Sentiment: Broader quantum stocks also “cooled off” after last week’s sector surge, suggesting some of QBTS’s weakness reflects profit-taking across the group rather than company-specific disappointment. QTUM ETF Crosses $5 Billion Even As IBM, Rigetti, IonQ, D-Wave Cool Off

Insider Transactions at D-Wave Quantum

In other news, CFO John M. Markovich sold 10,706 shares of the stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $17.63, for a total transaction of $188,746.78. Following the transaction, the chief financial officer directly owned 1,451,427 shares in the company, valued at approximately $25,588,658.01. This represents a 0.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director John D. Dilullo sold 8,000 shares of the stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $18.01, for a total value of $144,080.00. Following the transaction, the director owned 19,803 shares in the company, valued at $356,652.03. This trade represents a 28.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 54,801 shares of company stock valued at $1,011,586 over the last 90 days. Company insiders own 3.20% of the company's stock.

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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