D-Wave Quantum (NASDAQ:QBTS) Shares Up 3.6% - Should You Buy?

Key Points

• D-Wave Quantum shares rose 3.6% to $19.35, although trading volume was 48% below the average session volume. The stock remains below its 50-day and 200-day moving averages, both near $20.
• Analyst sentiment is broadly positive, with a “Moderate Buy” consensus from 16 analysts and an average price target of $36.27. Recent targets range from $30 to $40, implying substantial upside from the current price.
• The company’s latest quarter fell short of expectations, reporting a $0.10-per-share loss and $3.08 million in revenue versus estimates of a $0.08 loss and $4.03 million in revenue. Insiders have sold more than 1 million shares worth about $26.2 million over the past 90 days, adding a potential cautionary signal.

D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report)'s stock price rose 3.6% during trading on Tuesday . The company traded as high as $19.53 and last traded at $19.35. Approximately 14,882,784 shares traded hands during mid-day trading, a decline of 48% from the average session volume of 28,636,434 shares. The stock had previously closed at $18.68.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on QBTS shares. Wedbush started coverage on shares of D-Wave Quantum in a research report on Monday, August 3rd. They set an "outperform" rating and a $40.00 price target on the stock. Benchmark began coverage on D-Wave Quantum in a research note on Monday, July 27th. They set a "buy" rating and a $30.00 price target for the company. Mizuho lifted their price objective on D-Wave Quantum from $29.00 to $35.00 and gave the stock an "outperform" rating in a report on Monday, June 15th. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $40.00 price objective on shares of D-Wave Quantum in a report on Wednesday, May 13th. Finally, 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. Thirteen research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $36.27.

D-Wave Quantum Stock Performance

The company's fifty day simple moving average is $20.47 and its 200 day simple moving average is $20.21. The stock has a market capitalization of $7.16 billion, a P/E ratio of -27.25 and a beta of 2.15. The company has a current ratio of 20.55, a quick ratio of 20.42 and a debt-to-equity ratio of 0.03.

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

Insider Activity at D-Wave Quantum

In other D-Wave Quantum news, CEO Alan E. Baratz sold 687,627 shares of D-Wave Quantum stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $26.13, for a total transaction of $17,967,693.51. Following the completion of the sale, the chief executive officer directly owned 3,299,771 shares in the company, valued at $86,223,016.23. The trade was a 17.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Sophie C. Ames sold 3,070 shares of the 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 directly owned 589,009 shares in the company, valued at $9,983,702.55. The trade was a 0.52% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,012,065 shares of company stock valued at $26,245,703 in the last ninety days. Insiders own 1.30% of the company's stock.

Institutional Inflows and Outflows

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