D-Wave Quantum (NASDAQ:QBTS) Stock Price Down 10.1% - Time to Sell?

Key Points

• D-Wave Quantum shares fell 10.1% to $12.03, with trading volume below the average session level. The stock remains below its 50-day and 200-day moving averages of $17.58 and $19.73, respectively.
• D-Wave extended its manufacturing partnership with SkyWater Technology through a multiyear agreement, securing longer-term U.S.-based foundry capacity for future superconducting quantum processors. The deal may support commercialization, although its immediate financial impact was not disclosed.
• Analysts remain broadly positive, with 13 Buy ratings, two Holds and one Sell, producing a “Moderate Buy” consensus and an average price target of $36.27. However, the company recently missed quarterly EPS and revenue expectations and continues to report significant losses.

D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report)'s stock price dropped 10.1% during trading on Wednesday. The stock traded as low as $11.95 and last traded at $12.03. 23,780,223 shares changed hands during trading, a decline of 10% from the average session volume of 26,397,203 shares. The stock had previously closed at $13.38.

D-Wave Quantum News Roundup

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

• Positive Sentiment: D-Wave extended its manufacturing partnership with SkyWater Technology through a multi-year agreement. The deal is intended to secure specialized semiconductor fabrication for future superconducting quantum processors, while also incorporating intellectual-property protections and using D-Wave’s technology to improve SkyWater’s manufacturing operations. D-Wave Quantum, SkyWater Extend Quantum Chip Manufacturing Partnership to Include IP Protection
• Positive Sentiment: The agreement provides D-Wave with longer-term access to U.S.-based foundry capacity, potentially supporting the development and production of more advanced quantum systems. The partnership is a commercialization and supply-chain catalyst, although the immediate financial impact was not disclosed. What Does D Wave Quantum Multi Year Manufacturing Deal Change?

Analyst Upgrades and Downgrades

A number of analysts have weighed in on QBTS shares. BMO Capital Markets initiated coverage on shares of D-Wave Quantum in a research report on Thursday, August 20th. They issued an "outperform" rating and a $35.00 target price on the stock. Wedbush started coverage on 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 started coverage on shares of D-Wave Quantum in a report on Monday, July 27th. They issued a "buy" rating and a $30.00 price target on the stock. Roth Capital reiterated a "buy" rating and issued a $30.00 target price on shares of D-Wave Quantum in a research report on Thursday, August 6th. Finally, Jefferies Financial Group set a $40.00 target price on 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 issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $36.27.

D-Wave Quantum Trading Down 10.1%

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 company's 50 day moving average price is $17.58 and its two-hundred day moving average price is $19.73. The firm has a market cap of $4.45 billion, a PE ratio of -16.94 and a beta of 2.18.

D-Wave Quantum (NASDAQ:QBTS - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.10) EPS for the quarter, missing the consensus estimate of ($0.08) by ($0.02). The firm had revenue of $3.08 million for the quarter, compared to analysts' expectations 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 quarter in the previous year, the business earned ($0.08) earnings per share. As a group, sell-side analysts forecast that D-Wave Quantum Inc. will post -0.46 EPS for the current year.

Insider Transactions at D-Wave Quantum

In other news, VP Sophie Ames sold 3,070 shares of the stock in a transaction on Monday, July 20th. The shares were sold at an average price of $16.95, for a total value of $52,036.50. Following the sale, the vice president owned 589,009 shares in the company, valued at $9,983,702.55. This represents a 0.52% decrease in their ownership of the stock. The transaction 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. Corporate insiders own 1.30% of the company's stock.

Hedge Funds Weigh In On D-Wave Quantum

Institutional investors and hedge funds have recently modified their holdings of the business. Fiduciary Financial Advisors acquired a new position in shares of D-Wave Quantum during the 2nd quarter worth approximately $25,000. Parallel Advisors LLC grew its position in D-Wave Quantum by 545.5% in the 1st quarter. Parallel Advisors LLC now owns 1,788 shares of the company's stock valued at $26,000 after acquiring an additional 1,511 shares in the last quarter. Adirondack Trust Co. lifted its position in shares of D-Wave Quantum by 267.3% during the third quarter. Adirondack Trust Co. now owns 1,649 shares of the company's stock worth $27,000 after purchasing an additional 1,200 shares in the last quarter. PeakShares LLC purchased a new stake in D-Wave Quantum during the 1st quarter worth approximately $29,000. Finally, Kelleher Financial Advisors purchased a new stake in shares of D-Wave Quantum during the second quarter worth $39,000. Hedge funds and other institutional investors own 42.47% of the company's stock.

About D-Wave Quantum

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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