D-Wave Quantum (NASDAQ:QBTS) Stock Price Down 3.6% - Should You Sell?

Key Points

• D-Wave Quantum shares fell 3.6% to $15.22 in mid-day trading, with volume 46% below the average session level.
• Analyst sentiment remains generally positive: 13 analysts rate the stock Buy, two Hold, and one Sell, producing a “Moderate Buy” consensus and an average price target of $36.27.
• The company’s latest quarter showed financial weakness, with a $0.10-per-share loss versus the expected $0.08 loss and revenue of $3.08 million versus the $4.03 million consensus; its net margin and return on equity were also negative.

D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report)'s stock price dropped 3.6% during mid-day trading on Wednesday. The stock traded as low as $14.98 and last traded at $15.22. 14,289,798 shares changed hands during trading, a decline of 46% from the average session volume of 26,672,982 shares. The stock had previously closed at $15.79.

Analyst Ratings Changes

Several equities analysts recently weighed in on QBTS shares. Rosenblatt Securities reaffirmed a "buy" rating and set a $43.00 price objective on shares of D-Wave Quantum in a research report on Friday, August 7th. Weiss Ratings raised D-Wave Quantum from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Friday, August 28th. Benchmark began coverage on D-Wave Quantum in a research report on Monday, July 27th. They set a "buy" rating and a $30.00 target price for the company. Zacks Research lowered shares of D-Wave Quantum from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 18th. Finally, Wedbush assumed 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 objective for the company. Thirteen analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $36.27.

D-Wave Quantum Stock Performance

The stock has a market cap of $5.63 billion, a P/E ratio of -21.44 and a beta of 2.18. The firm has a 50 day moving average of $18.03 and a two-hundred day moving average of $19.79. 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 issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.10) EPS for the quarter, missing the consensus estimate of ($0.08) by ($0.02). The business 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 business's quarterly revenue was down 0.6 on a year-over-year basis. During the same period in the prior year, the firm earned ($0.08) earnings per share. On average, research analysts predict that D-Wave Quantum Inc. will post -0.46 EPS for the current fiscal year.

Insider Transactions at D-Wave Quantum

In other news, VP Sophie Ames sold 3,070 shares of the business's stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $16.95, for a total transaction of $52,036.50. Following the transaction, the vice president owned 589,009 shares in the company, valued at approximately $9,983,702.55. The trade was a 0.52% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On D-Wave Quantum

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Tidal Investments LLC acquired a new position in shares of D-Wave Quantum in the second quarter valued at $372,000. Archford Capital Strategies LLC bought a new stake in D-Wave Quantum in the 2nd quarter valued at $200,000. WINTON GROUP Ltd bought a new position in shares of D-Wave Quantum during the 2nd quarter worth about $6,720,000. NorthRock Partners LLC bought a new position in shares of D-Wave Quantum during the 2nd quarter worth about $359,000. Finally, Integrated Wealth Concepts LLC boosted its position in shares of D-Wave Quantum by 18.2% during the 2nd quarter. Integrated Wealth Concepts LLC now owns 17,136 shares of the company's stock valued at $411,000 after acquiring an additional 2,640 shares in the last quarter. 42.47% of the stock is currently owned by institutional investors.

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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