D-Wave Quantum (NASDAQ:QBTS) Shares Down 5.7% - Should You Sell?

Key Points

• D-Wave Quantum shares fell 5.7% to $13.74, with trading volume about 48% below the average daily level.
• Despite the decline, analysts maintain a “Moderate Buy” consensus, with an average price target of $36.27; 13 analysts rate the stock Buy, two Hold, and one Sell.
• The company reported weaker-than-expected quarterly results, including a $0.10 loss per share versus an anticipated $0.08 loss and revenue of $3.08 million against estimates of $4.03 million.

D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report)'s share price dropped 5.7% during trading on Monday. The company traded as low as $13.73 and last traded at $13.74. Approximately 13,895,092 shares were traded during trading, a decline of 48% from the average daily volume of 26,485,088 shares. The stock had previously closed at $14.57.

Wall Street Analyst Weigh In

A number of brokerages recently commented on QBTS. Roth Capital reaffirmed a "buy" rating and issued a $30.00 price target on shares of D-Wave Quantum in a research note on Thursday, August 6th. Canaccord Genuity Group set a $35.00 price objective on shares of D-Wave Quantum in a research report on Thursday, August 6th. Zacks Research lowered shares of D-Wave Quantum from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 18th. Mizuho raised their target price on shares of D-Wave Quantum from $29.00 to $35.00 and gave the stock an "outperform" rating in a research report on Monday, June 15th. Finally, Jefferies Financial Group set a $40.00 target price on shares of D-Wave Quantum in a research report on Friday, August 7th. Thirteen equities research 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. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $36.27.

D-Wave Quantum Price Performance

The stock has a market cap of $5.08 billion, a P/E ratio of -19.35 and a beta of 2.18. The firm has a 50-day moving average price of $17.87 and a 200-day moving average price of $19.76. The company has a debt-to-equity ratio of 0.03, a quick ratio of 20.42 and a current ratio of 20.55.

D-Wave Quantum (NASDAQ:QBTS - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.10) EPS for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.02). 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 $3.08 million during the quarter, compared to analysts' expectations of $4.03 million. During the same quarter in the previous year, the business earned ($0.08) EPS. The company's revenue for the quarter was down 0.6 compared to the same quarter last year. On average, analysts forecast that D-Wave Quantum Inc. will post -0.46 earnings per share for the current fiscal year.

Insider Transactions at D-Wave Quantum

In other D-Wave Quantum news, VP Sophie Ames sold 3,070 shares of the firm's stock in a transaction on Monday, July 20th. The stock was sold at an average price of $16.95, for a total transaction 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. This trade represents a 0.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.30% of the company's stock.

Institutional Trading of D-Wave Quantum

A number of hedge funds have recently modified their holdings of the business. BlackRock Inc. purchased a new position in D-Wave Quantum in the second quarter worth about $795,206,000. Clear Street Group Inc. lifted its stake in shares of D-Wave Quantum by 40.4% in the fourth quarter. Clear Street Group Inc. now owns 4,281,254 shares of the company's stock worth $111,955,000 after buying an additional 1,232,106 shares in the last quarter. Bank of America Corp DE bought a new position in shares of D-Wave Quantum in the second quarter worth approximately $104,183,000. Van ECK Associates Corp grew its holdings in shares of D-Wave Quantum by 52.6% during the second quarter. Van ECK Associates Corp now owns 2,339,788 shares of the company's stock valued at $56,132,000 after buying an additional 806,835 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in shares of D-Wave Quantum during the second quarter valued at approximately $54,951,000. Institutional investors own 42.47% of the company's stock.

D-Wave Quantum Company Profile

D-Wave Quantum Inc is a quantum-computing company that develops and delivers quantum systems, software and cloud-based services for commercial, government and research customers. The company focuses on quantum annealing, an approach designed to address complex optimization problems, and is also developing gate-model quantum-computing capabilities.

Its offerings include D-Wave quantum computers, the Leap quantum cloud service, and the Ocean software development kit. Through these products, customers can access quantum hardware, build and test applications, and combine quantum processing with classical computing through hybrid solvers.

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