D-Wave Quantum (NASDAQ:QBTS) Shares Down 3.6% - Should You Sell?

Key Points

• D-Wave Quantum shares fell 3.6% to about $16.78, with trading volume roughly 49% below its average. The stock remains below both its 50-day and 200-day moving averages.
• Analyst sentiment is broadly positive, with 13 Buy ratings, two Holds and one Sell, producing a “Moderate Buy” consensus and an average price target of $36.27.
• The company’s latest quarter showed continued financial weakness: adjusted EPS of negative $0.10 missed estimates, revenue of $3.08 million fell short of projections, and analysts expect a full-year loss of $0.46 per share.

Shares of D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report) were down 3.6% during mid-day trading on Monday. The company traded as low as $16.75 and last traded at $16.78. 13,716,663 shares traded hands during trading, a decline of 49% from the average daily volume of 27,129,072 shares. The stock had previously closed at $17.41.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on QBTS shares. Weiss Ratings upgraded D-Wave Quantum from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, August 28th. Mizuho boosted their target price on D-Wave Quantum from $29.00 to $35.00 and gave the stock an "outperform" rating in a research report on Monday, June 15th. Jefferies Financial Group set a $40.00 target price on D-Wave Quantum in a report on Friday, August 7th. Stifel Nicolaus set a $35.00 price target on D-Wave Quantum in a research report on Tuesday, June 2nd. Finally, Wedbush assumed coverage on D-Wave Quantum in a research note on Monday, August 3rd. They set an "outperform" rating and a $40.00 price target for the company. Thirteen analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $36.27.

D-Wave Quantum Stock Down 3.6%

The company has a debt-to-equity ratio of 0.03, a current ratio of 20.55 and a quick ratio of 20.42. The firm's 50-day moving average price is $18.21 and its 200 day moving average price is $19.87. The firm has a market capitalization of $6.21 billion, a price-to-earnings ratio of -23.63 and a beta of 2.15.

D-Wave Quantum (NASDAQ:QBTS - Get Free Report) last issued its quarterly earnings data 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). D-Wave Quantum had a negative return on equity of 26.67% and a negative net margin of 2,001.59%.The company had revenue of $3.08 million for the quarter, compared to analyst estimates of $4.03 million. During the same quarter in the prior year, the firm earned ($0.08) earnings per share. The company's revenue for the quarter was down 0.6 on a year-over-year basis. Sell-side analysts expect that D-Wave Quantum Inc. will post -0.46 EPS for the current year.

Insiders Place Their Bets

In related news, VP Sophie Ames sold 3,070 shares of the business's stock in a transaction dated Monday, July 20th. The shares were 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 owned 589,009 shares of the company's stock, valued at approximately $9,983,702.55. The trade was a 0.52% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.30% of the company's stock.

Hedge Funds Weigh In On D-Wave Quantum

A number of institutional investors have recently modified their holdings of the company. Root Financial Partners LLC grew its stake in D-Wave Quantum by 388.0% in 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 period. Fiduciary Financial Advisors acquired a new position in D-Wave Quantum in the 2nd quarter valued at $25,000. EverSource Wealth Advisors LLC lifted its stake in shares of 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 purchasing an additional 838 shares during the period. Ancora Advisors LLC purchased a new position in shares of D-Wave Quantum during the 2nd quarter worth $39,000. Finally, Kelleher Financial Advisors acquired a new stake in shares of D-Wave Quantum during the second quarter worth $39,000. Institutional investors and hedge funds own 42.47% of the company's stock.

About D-Wave Quantum

D-Wave Quantum Inc develops quantum computing systems, software, and services for commercial, government, and research customers. The company is best known for its quantum annealing technology, which is designed to help solve complex optimization problems involving areas such as logistics, scheduling, manufacturing, artificial intelligence, and financial modeling.

D-Wave also develops gate-model quantum computing technology and provides access to its systems through cloud-based services, including the Leap quantum application environment.

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