D-Wave Quantum (NASDAQ:QBTS) Shares Up 4% - Time to Buy?

Key Points

• D-Wave Quantum shares rose 4% to $17.48, supported by broader momentum in quantum-computing stocks and a new CGI partnership aimed at expanding enterprise use of D-Wave’s systems.
• The company is pursuing growth through potential CHIPS funding of up to $100 million, new deployments and commercial partnerships, but it continues to face substantial losses, cash burn, missed quarterly estimates and commercialization uncertainty.
• Wall Street’s consensus rating is “Moderate Buy”, with an average price target of $36.27, though the stock’s high valuation, legal investigations and negative earnings remain significant risks.

D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report) rose 4% during mid-day trading on Thursday. The stock traded as high as $17.58 and last traded at $17.48. 18,509,789 shares changed hands during mid-day trading, a decline of 32% from the average daily volume of 27,280,258 shares. The stock had previously closed at $16.81.

Key D-Wave Quantum News

Here are the key news stories impacting D-Wave Quantum this week:

• Positive Sentiment: CGI enterprise partnership: D-Wave and CGI announced a strategic collaboration to help customers deploy D-Wave’s Advantage2 system and hybrid solvers in logistics, transportation, retail and other industries. The deal supports D-Wave’s effort to move quantum computing from research projects toward practical enterprise applications. D-Wave Quantum and CGI Partner to Bring Advantage2 to Enterprise Clients
• Positive Sentiment: Government funding and commercial momentum: Recent coverage highlighted up to $100 million in CHIPS funding, new production deployments and expanded partnerships. The funding could strengthen D-Wave’s balance sheet and support system development, while deployments offer potential validation of its technology. Here’s How QBTS Deepens Quantum Push With Funding and New Deals
• Positive Sentiment: Sector-wide rebound: Quantum stocks continued recovering as investors digested recent technical breakthroughs and new industry announcements, including developments from IonQ. This broader momentum is providing a favorable trading backdrop for QBTS, although it is not specific to D-Wave’s near-term financial results. IonQ Rises as Post-Breakthrough Buying Continues
• Neutral Sentiment: Leadership update: Senior Vice President of Finance Gregory Golkov was formally appointed acting chief financial officer. D-Wave also disclosed a roughly $550,000 equity award, which may attract investor attention but does not by itself materially change the company’s operating outlook. QBTS Stock Drops as D-Wave Discloses Acting CFO Equity Award
• Negative Sentiment: Valuation and financial risks remain: Analysts continue to flag D-Wave’s sizable losses, cash burn and uncertain commercialization timeline. The company recently missed quarterly revenue and earnings expectations, while its elevated valuation leaves the stock vulnerable to higher interest rates or disappointing execution.
• Negative Sentiment: Legal overhang: Law firms announced investigations involving D-Wave and encouraged investors to contact them. Such notices may add uncertainty and weigh on sentiment, although they do not establish wrongdoing or necessarily indicate a material financial impact.

Wall Street Analyst Weigh In

Several research firms recently issued reports on QBTS. Weiss Ratings upgraded D-Wave Quantum from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, August 28th. Rosenblatt Securities restated a "buy" rating and issued a $43.00 target price on shares of D-Wave Quantum in a research report on Friday, August 7th. Needham & Company LLC reaffirmed a "buy" rating and set a $40.00 target price on shares of D-Wave Quantum in a research note on Tuesday, June 2nd. Mizuho upped their target price on shares of D-Wave Quantum from $29.00 to $35.00 and gave the stock an "outperform" rating in a report on Monday, June 15th. Finally, Canaccord Genuity Group set a $35.00 price target on shares of D-Wave Quantum in a research report on Thursday, August 6th. Thirteen analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, D-Wave Quantum presently has a consensus rating of "Moderate Buy" and an average target price of $36.27.

D-Wave Quantum Stock Up 4.0%

The business's 50 day simple moving average is $18.18 and its 200 day simple moving average is $19.89. The company has a market capitalization of $6.47 billion, a PE ratio of -24.62 and a beta of 2.15. The company has a debt-to-equity ratio of 0.03, a current ratio of 20.55 and a quick ratio of 20.42.

D-Wave Quantum (NASDAQ:QBTS - Get Free Report) last posted 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 analyst estimates 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%.D-Wave Quantum's revenue was down 0.6 compared to the same quarter last year. During the same period last year, the business earned ($0.08) EPS. As a group, analysts anticipate that D-Wave Quantum Inc. will post -0.46 earnings per share for the current fiscal year.

Insider Activity at D-Wave Quantum

In related news, VP Sophie Ames sold 3,070 shares of the stock in a transaction that occurred on Monday, July 20th. The shares were 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 position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.30% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Allspring Global Investments Holdings LLC increased its stake in shares of 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 worth $1,353,000 after buying an additional 75,198 shares during the period. Clear Street Group Inc. grew its holdings in D-Wave Quantum by 40.4% during the 4th quarter. Clear Street Group Inc. now owns 4,281,254 shares of the company's stock worth $111,955,000 after acquiring an additional 1,232,106 shares in the last quarter. Cibc World Market Inc. increased its position in shares of D-Wave Quantum by 295.0% in the 4th quarter. Cibc World Market Inc. now owns 54,760 shares of the company's stock valued at $1,432,000 after purchasing an additional 40,897 shares during the last quarter. Intech Investment Management LLC raised its holdings in shares of D-Wave Quantum by 26.9% in the 4th quarter. Intech Investment Management LLC now owns 112,742 shares of the company's stock valued at $2,948,000 after purchasing an additional 23,892 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its position in shares of D-Wave Quantum by 289.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 143,064 shares of the company's stock worth $2,064,000 after purchasing an additional 106,324 shares during the last quarter. Hedge funds and other institutional investors own 42.47% of the company's stock.

D-Wave Quantum Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.