D-Wave Quantum (NASDAQ:QBTS) Stock Price Down 4.8% - Here's Why

Key Points

• D-Wave Quantum shares fell 4.8% to about $15.77 in mid-day trading, with volume below its average. The stock remains below both its 50-day and 200-day moving averages.
• Analysts remain broadly optimistic, with 13 Buy ratings, two Holds and one Sell; the consensus rating is “Moderate Buy” with a $36.27 target price.
• The company’s latest quarterly results missed 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.

D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report) shares fell 4.8% during mid-day trading on Friday. The company traded as low as $15.74 and last traded at $15.77. 19,953,670 shares were traded during mid-day trading, a decline of 26% from the average daily volume of 26,872,602 shares. The stock had previously closed at $16.56.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. Weiss Ratings raised D-Wave Quantum from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Friday, August 28th. 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 objective for the company. Jefferies Financial Group set a $40.00 target price on shares of D-Wave Quantum in a report on Friday, August 7th. 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 on the stock. Finally, Mizuho raised their price objective on D-Wave Quantum from $29.00 to $35.00 and gave the company an "outperform" rating in a research note on Monday, June 15th. Thirteen investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, D-Wave Quantum presently has an average rating of "Moderate Buy" and a consensus target price of $36.27.

D-Wave Quantum Stock Performance

The business's fifty day simple moving average is $18.15 and its 200-day simple moving average is $19.82. The firm has a market cap of $5.83 billion, a P/E ratio of -22.21 and a beta of 2.18. 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 posted its earnings results 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). D-Wave Quantum had a negative return on equity of 26.67% and a negative net margin of 2,001.59%.The firm had revenue of $3.08 million for the quarter, compared to analysts' expectations of $4.03 million. During the same quarter in the prior year, the company posted ($0.08) earnings per share. The business's revenue for the quarter was down 0.6 on a year-over-year basis. As a group, sell-side analysts expect that D-Wave Quantum Inc. will post -0.46 earnings per share for the current year.

Insider Activity at D-Wave Quantum

In related news, VP Sophie Ames sold 3,070 shares of the firm's stock in a transaction on Monday, July 20th. The stock was sold at an average price of $16.95, for a total value of $52,036.50. Following the completion of the sale, the vice president owned 589,009 shares of the company's stock, valued at $9,983,702.55. This trade represents a 0.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On D-Wave Quantum

Several institutional investors and hedge funds have recently modified their holdings of QBTS. Allspring Global Investments Holdings LLC grew its stake in D-Wave Quantum by 319.3% in the first quarter. Allspring Global Investments Holdings LLC now owns 98,747 shares of the company's stock worth $1,353,000 after purchasing an additional 75,198 shares during the period. Clear Street Group Inc. lifted its position in D-Wave Quantum by 40.4% during the fourth quarter. Clear Street Group Inc. now owns 4,281,254 shares of the company's stock valued at $111,955,000 after buying an additional 1,232,106 shares during the period. Cibc World Market Inc. lifted its position in D-Wave Quantum by 295.0% during the fourth quarter. Cibc World Market Inc. now owns 54,760 shares of the company's stock valued at $1,432,000 after buying an additional 40,897 shares during the period. Dimensional Fund Advisors LP boosted its holdings 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 valued at $2,064,000 after buying an additional 106,324 shares in the last quarter. Finally, The Manufacturers Life Insurance Company boosted its holdings in shares of D-Wave Quantum by 64.7% during the 1st quarter. The Manufacturers Life Insurance Company now owns 183,481 shares of the company's stock valued at $2,648,000 after buying an additional 72,100 shares in the last quarter. 42.47% of the stock is owned by hedge funds and other institutional investors.

D-Wave Quantum Company Profile

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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