D-Wave Quantum (NASDAQ:QBTS) Stock Price Down 2.1% - Should You Sell?

Key Points

• D-Wave Quantum shares fell 2.1% to $16.43 in midday trading, with volume about 47% below the average session level.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $36.27, well above the current share price.
• The company’s latest quarter showed ongoing financial weakness: D-Wave missed earnings and revenue estimates, posted a sharply negative net margin, and analysts expect a full-year loss of $0.46 per share.

D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report) shares dropped 2.1% during mid-day trading on Tuesday. The stock traded as low as $16.37 and last traded at $16.43. Approximately 14,278,854 shares changed hands during trading, a decline of 47% from the average session volume of 27,070,041 shares. The stock had previously closed at $16.78.

Analysts Set New Price Targets

QBTS has been the subject of several recent research reports. Jefferies Financial Group set a $40.00 price target on shares of D-Wave Quantum in a research report on Friday, August 7th. BMO Capital Markets assumed coverage on shares of D-Wave Quantum in a research note on Thursday, August 20th. They set an "outperform" rating and a $35.00 target price for the company. Benchmark started coverage on shares of D-Wave Quantum in a research report on Monday, July 27th. They issued a "buy" rating and a $30.00 target price for the company. Wedbush started coverage on shares of D-Wave Quantum in a research note on Monday, August 3rd. They issued an "outperform" rating and a $40.00 price target on the stock. Finally, Canaccord Genuity Group set a $35.00 price target on D-Wave Quantum in a report on Thursday, August 6th. Thirteen 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 stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $36.27.

D-Wave Quantum Price Performance

The company has a market capitalization of $6.08 billion, a price-to-earnings ratio of -23.14 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. The business has a fifty day moving average price of $18.21 and a 200 day moving average price of $19.85.

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 for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.02). The company had revenue of $3.08 million for the quarter, compared to the consensus estimate of $4.03 million. D-Wave Quantum had a negative net margin of 2,001.59% and a negative return on equity of 26.67%. D-Wave Quantum's revenue for the quarter was down 0.6 compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.08) earnings per share. On average, research analysts expect that D-Wave Quantum Inc. will post -0.46 earnings per share for the current fiscal year.

Insider Buying and Selling at D-Wave Quantum

In other 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 value 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. This trade represents a 0.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.30% of the company's stock.

Institutional Investors Weigh In On D-Wave Quantum

A number of institutional investors have recently added to or reduced their stakes in the company. Fiduciary Financial Advisors acquired a new position in shares of D-Wave Quantum during the 2nd quarter valued at $25,000. Root Financial Partners LLC lifted its holdings in shares of D-Wave Quantum by 388.0% in the fourth quarter. Root Financial Partners LLC now owns 976 shares of the company's stock valued at $26,000 after buying an additional 776 shares during the period. Parallel Advisors LLC boosted its stake in D-Wave Quantum by 545.5% during the first quarter. Parallel Advisors LLC now owns 1,788 shares of the company's stock valued at $26,000 after buying an additional 1,511 shares in the last quarter. PeakShares LLC bought a new position in D-Wave Quantum during the first quarter valued at about $29,000. Finally, EverSource Wealth Advisors LLC grew its holdings in D-Wave Quantum by 267.7% during the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company's stock worth $30,000 after acquiring an additional 838 shares during the period. 42.47% of the stock is currently owned by institutional investors and hedge funds.

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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