D-Wave Quantum (NASDAQ:QBTS) Shares Down 1.4% - Time to Sell?

Key Points

• D-Wave Quantum shares fell 1.4% to $16.58 in Friday trading, with volume roughly 54% below the stock’s average daily level.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $36.27, despite the latest quarterly results missing expectations for both EPS and revenue.
• The company remains deeply unprofitable, reporting a negative $0.10 EPS, a $3.08 million quarterly revenue figure, and a negative net margin exceeding 2,000%; insiders have also sold approximately $26 million of stock over the past three months.

D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report)'s stock price dropped 1.4% during trading on Friday . The stock traded as low as $16.43 and last traded at $16.58. Approximately 12,782,918 shares were traded during mid-day trading, a decline of 54% from the average daily volume of 28,011,309 shares. The stock had previously closed at $16.82.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the stock. Wall Street Zen upgraded shares of D-Wave Quantum from a "strong sell" rating to a "sell" rating in a research report on Saturday, August 8th. Jefferies Financial Group set a $40.00 price objective on shares of D-Wave Quantum in a report on Friday, August 7th. Wedbush assumed coverage on D-Wave Quantum in a research report on Monday, August 3rd. They set an "outperform" rating and a $40.00 price objective on the stock. Canaccord Genuity Group set a $35.00 target price on D-Wave Quantum in a report on Thursday, August 6th. Finally, Benchmark assumed coverage on D-Wave Quantum in a research report on Monday, July 27th. They issued a "buy" rating and a $30.00 target price for the company. Thirteen investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, D-Wave Quantum has a consensus rating of "Moderate Buy" and an average price target of $36.27.

D-Wave Quantum Trading Down 1.4%

The firm has a market cap of $6.13 billion, a PE ratio of -23.35 and a beta of 2.15. 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 fifty day simple moving average is $19.44 and its two-hundred day simple moving average is $20.08.

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

Insider Buying and Selling

In other news, Director Rohit Ghai sold 13,518 shares of the firm's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $26.41, for a total transaction of $357,010.38. Following the completion of the transaction, the director directly owned 23,617 shares in the company, valued at $623,724.97. This trade represents a 36.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Sophie C. Ames sold 3,070 shares of D-Wave Quantum stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $16.95, for a total value of $52,036.50. Following the completion of the transaction, the vice president directly owned 589,009 shares of the company's stock, valued at approximately $9,983,702.55. This represents a 0.52% 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. Insiders have sold a total of 1,001,307 shares of company stock worth $25,963,780 over the last three months. 1.30% of the stock is owned by corporate insiders.

Institutional Trading of D-Wave Quantum

Institutional investors and hedge funds have recently bought and sold shares of the company. Root Financial Partners LLC grew its holdings in shares of D-Wave Quantum by 388.0% during the fourth quarter. Root Financial Partners LLC now owns 976 shares of the company's stock valued at $26,000 after buying an additional 776 shares during the last quarter. Fiduciary Financial Advisors purchased a new position in D-Wave Quantum in the 2nd quarter worth approximately $25,000. Kemnay Advisory Services Inc. bought a new position in D-Wave Quantum in the 4th quarter valued at approximately $28,000. EverSource Wealth Advisors LLC lifted its position in D-Wave Quantum by 267.7% in the 4th quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company's stock valued at $30,000 after acquiring an additional 838 shares in the last quarter. Finally, Mcguire Capital Advisors Inc. purchased a new stake in D-Wave Quantum during the 4th quarter valued at $31,000. 42.47% of the stock is currently owned by institutional investors.

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.

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