Insider Selling: D-Wave Quantum (NYSE:QBTS) CFO Sells 328,752 Shares of Stock

Key Points

• D-Wave Quantum CFO John Markovich sold 328,752 shares on May 22 at an average price of $27.70, totaling about $9.1 million. After the sale, he still owned 1,442,820 shares, and the filing showed an 18.56% reduction in his position.
• The stock has been volatile, recently trading around $27.59 with a market cap of about $10.21 billion, while remaining well above its 50-day and 200-day moving averages. QBTS is still far from its 52-week high of $46.75, but above its low of $12.75.
• Despite mixed fundamentals and recent scrutiny of its quantum advantage claims, D-Wave has some positive catalysts, including a $100 million CHIPS Act funding letter of intent and continued institutional and analyst interest. Wall Street currently rates the stock a consensus Moderate Buy with an average price target of $34.67.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) CFO John Markovich sold 328,752 shares of the company's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $27.70, for a total transaction of $9,106,430.40. Following the completion of the sale, the chief financial officer directly owned 1,442,820 shares in the company, valued at approximately $39,966,114. The trade was a 18.56% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link.

D-Wave Quantum Price Performance

Shares of QBTS traded down $0.23 during trading hours on Wednesday, hitting $27.59. The stock had a trading volume of 33,906,740 shares, compared to its average volume of 31,732,994. The company's fifty day moving average is $18.83 and its two-hundred day moving average is $22.10. The company has a debt-to-equity ratio of 0.03, a current ratio of 21.41 and a quick ratio of 21.31. D-Wave Quantum Inc. has a 52 week low of $12.75 and a 52 week high of $46.75. The stock has a market capitalization of $10.21 billion, a price-to-earnings ratio of -24.42 and a beta of 1.95.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last posted its earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share for the quarter, topping the consensus estimate of ($0.08) by $0.03. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The business had revenue of $2.86 million for the quarter, compared to analyst estimates of $4.19 million. During the same quarter in the prior year, the firm earned ($0.02) EPS. The firm's quarterly revenue was down 80.9% compared to the same quarter last year. On average, analysts anticipate that D-Wave Quantum Inc. will post -0.44 EPS for the current year.

Key D-Wave Quantum News

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

• Positive Sentiment: D-Wave announced a letter of intent with the U.S. Department of Commerce for $100 million in CHIPS and Science Act funding, reinforcing its hardware and superconducting quantum roadmap and giving investors a clearer government-backed catalyst. D-Wave Quantum (QBTS) and Department of Commerce Sign Letter of Intent for $100M in CHIPS and Science Act Funding
• Positive Sentiment: Coverage highlighted D-Wave’s record bookings, expanding system sales, and rising enterprise adoption, which supports the view that QBTS is becoming more commercially relevant and could have additional upside if execution continues. IONQ vs. QBTS: Which Quantum Stock Has More Upside Potential in June?
• Positive Sentiment: D-Wave also said it secured second-year funding for a superconducting quantum innovation project, extending U.S.-backed support for its technology development and reducing some funding risk. D-Wave Quantum Secures Second-Year Defense Microelectronics Funding
• Neutral Sentiment: Several articles framed quantum computing as moving toward commercial breakout, which keeps investor enthusiasm elevated for the sector and may continue to support QBTS sentiment if the industry’s adoption story holds. Quantum Computing's Commercial Breakout Has Arrived (QBTS)
• Negative Sentiment: Shares came under pressure after a classical computing study challenged D-Wave’s quantum advantage/supremacy claims, raising doubts about the company’s technical narrative and potentially pressuring sentiment in the near term. D-Wave Quantum (QBTS) Shares Slip 5% as Classical Computing Study Questions Quantum Advantage
• Negative Sentiment: TipRanks and other coverage echoed that a new laptop-based study disputed QBTS’s supremacy claims, adding headline risk and helping explain why the stock has cooled after a sharp rally. D-Wave Stock Falls as Laptop Study Challenges QBTS Quantum Supremacy Claim

Institutional Investors Weigh In On D-Wave Quantum

Hedge funds have recently added to or reduced their stakes in the stock. Root Financial Partners LLC grew its holdings in D-Wave Quantum by 388.0% during the 4th quarter. Root Financial Partners LLC now owns 976 shares of the company's stock worth $26,000 after acquiring an additional 776 shares during the last quarter. Parallel Advisors LLC grew its holdings in D-Wave Quantum by 545.5% during the 1st quarter. Parallel Advisors LLC now owns 1,788 shares of the company's stock worth $26,000 after acquiring an additional 1,511 shares during the last quarter. Kemnay Advisory Services Inc. bought a new stake in D-Wave Quantum during the 4th quarter worth about $28,000. PeakShares LLC bought a new stake in D-Wave Quantum during the 1st quarter worth about $29,000. Finally, EverSource Wealth Advisors LLC grew its holdings in D-Wave Quantum by 267.7% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company's stock worth $30,000 after acquiring an additional 838 shares during the last quarter. Institutional investors own 42.47% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on QBTS shares. TD Cowen started coverage on shares of D-Wave Quantum in a report on Thursday, February 12th. They issued a "buy" rating on the stock. Northland Securities started coverage on shares of D-Wave Quantum in a report on Monday, April 20th. They issued a "market perform" rating and a $22.00 target price on the stock. Wall Street Zen lowered shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a report on Saturday, February 7th. Canaccord Genuity Group decreased their price objective on shares of D-Wave Quantum from $43.00 to $41.00 and set a "buy" rating on the stock in a report on Wednesday, May 13th. Finally, Zacks Research raised shares of D-Wave Quantum from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 28th. Fourteen analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $34.67.

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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