D-Wave Quantum (NASDAQ:QBTS) Shares Climb 1.6% - What's Next?

Key Points

• QBTS shares rose 1.6% to $10.65 in Wednesday’s midday trading, while volume was 43% below its average.
• D-Wave reported quarterly revenue of $4.51 million, slightly above estimates, but its loss of $0.13 per share was wider than the $0.10 loss analysts expected.
• Analyst sentiment remains a “Moderate Buy,” with a $30.71 consensus price target, although several firms recently lowered their targets; the company also cited a growing system-sales pipeline and expected fourth-quarter delivery.

D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report)'s stock price traded up 1.6% during mid-day trading on Wednesday. The stock traded as high as $11.02 and last traded at $10.65. Approximately 14,596,715 shares were traded during trading, a decline of 43% from the average daily volume of 25,410,697 shares. The stock had previously closed at $10.48.

Top D-Wave Quantum Stories

These are some of the QBTS stories that stood out recently:

• Positive Sentiment: D-Wave’s Q3 earnings-call discussion pointed to a growing system-sales pipeline, an expected fourth-quarter delivery and technical progress across its annealing and gate-model platforms—potential catalysts for future commercialization. QBTS Q3 Earnings Call Highlights System Sales and Quantum Roadmap
• Neutral Sentiment: Canaccord Genuity, Needham, Stifel and Rosenblatt maintained Buy ratings, but each cut its price target. The continued positive ratings may support confidence, while the lower targets signal more cautious expectations. Canaccord Genuity Group recommendations
• Negative Sentiment: Several law firms reiterated notices about a pending securities class action, with a December 15 lead-plaintiff deadline. The repeated notices do not establish wrongdoing, but can keep litigation risk in focus for investors. Levi & Korsinsky class-action reminder

Analyst Upgrades and Downgrades

Several analysts have recently commented on the company. Canaccord Genuity Group decreased their target price on D-Wave Quantum from $35.00 to $31.00 and set a "buy" rating for the company in a research report on Wednesday. BMO Capital Markets started coverage on D-Wave Quantum in a research report on Thursday, August 20th. They set an "outperform" rating and a $35.00 price target on the stock. Mizuho set a $23.00 price objective on D-Wave Quantum in a research note on Tuesday. Stifel Nicolaus decreased their price objective on D-Wave Quantum from $35.00 to $23.00 and set a "buy" rating for the company in a research report on Wednesday. Finally, Wedbush initiated coverage on D-Wave Quantum in a research note on Monday, August 3rd. They set an "outperform" rating and a $40.00 target price on the stock. Fourteen 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 a consensus rating of "Moderate Buy" and an average target price of $30.71.

D-Wave Quantum Price Performance

The company has a quick ratio of 20.42, a current ratio of 20.55 and a debt-to-equity ratio of 0.03. The stock's 50 day moving average price is $14.34 and its two-hundred day moving average price is $18.76. The firm has a market capitalization of $3.94 billion, a price-to-earnings ratio of -15.00 and a beta of 2.35.

D-Wave Quantum (NASDAQ:QBTS - Get Free Report) last released its quarterly earnings data on Tuesday, November 10th. The company reported ($0.13) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.10) by ($0.03). D-Wave Quantum had a negative net margin of 2,001.59% and a negative return on equity of 26.67%. The firm had revenue of $4.51 million for the quarter, compared to analyst estimates of $4.37 million. During the same period in the previous year, the business posted ($0.41) EPS. Analysts anticipate that D-Wave Quantum Inc. will post -0.50 EPS for the current fiscal year.

Institutional Investors Weigh In On D-Wave Quantum

Several large investors have recently made changes to their positions in the company. Burr Financial Services LLC acquired a new position in D-Wave Quantum during the third quarter worth $6,343,000. Allspring Global Investments Holdings LLC raised its holdings in D-Wave Quantum by 319.3% during the first quarter. Allspring Global Investments Holdings LLC now owns 98,747 shares of the company's stock valued at $1,353,000 after buying an additional 75,198 shares in the last quarter. The Manufacturers Life Insurance Company lifted its position in shares of D-Wave Quantum by 64.7% in the first quarter. The Manufacturers Life Insurance Company now owns 183,481 shares of the company's stock worth $2,648,000 after buying an additional 72,100 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in shares of D-Wave Quantum by 289.4% in the first quarter. Dimensional Fund Advisors LP now owns 143,064 shares of the company's stock worth $2,064,000 after buying an additional 106,324 shares during the last quarter. Finally, Citizens Financial Group Inc. RI acquired a new stake in shares of D-Wave Quantum in the second quarter worth about $1,945,000. Institutional investors own 42.47% of the company's stock.

About D-Wave Quantum

D-Wave Quantum develops quantum computing systems, software and services for commercial, government and research users. The company focuses on quantum annealing, an approach designed to help solve complex optimization and sampling problems, and offers hybrid tools that combine quantum processing with classical computing. Its offerings include Advantage quantum computers, the Leap quantum cloud service, and software for building and running applications. D-Wave's technology is used to explore challenges such as scheduling, resource allocation and supply-chain optimization.

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