D-Wave Quantum (NASDAQ:QBTS) Stock Price Up 6.6% - Time to Buy?

Key Points

• D-Wave Quantum shares rose 6.6% to $12.82 as quantum-computing stocks rebounded after a sector selloff tied to dilution concerns. The move appeared largely sentiment-driven rather than based on new company financial results.
• D-Wave strengthened its commercial and manufacturing position by deploying an Advantage2 system in Italy and extending its specialized chip-production partnership with SkyWater Technology.
• Risks remain significant: the company recently missed revenue and EPS expectations, remains unprofitable, and faces valuation, potential dilution, and legal-investigation overhangs. Analysts nonetheless maintain a “Moderate Buy” consensus with a $36.27 average price target.

D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report) shot up 6.6% during trading on Thursday. The stock traded as high as $12.87 and last traded at $12.82. Approximately 23,250,541 shares changed hands during trading, a decline of 12% from the average daily volume of 26,382,631 shares. The stock had previously closed at $12.03.

D-Wave Quantum News Roundup

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

• Positive Sentiment: International deployment strengthens commercial credibility. D-Wave announced that its Advantage2 annealing quantum computer has arrived in Como, Italy, for installation at Villa Saporiti. Funded by Swiss Quantum Technology SA, the system is described as Italy’s first annealing quantum computer and could expand D-Wave’s presence in European research and business applications. D-Wave Delivers Italy’s First Annealing Quantum Computer
• Positive Sentiment: Multi-year chip manufacturing agreement provides supply-chain visibility. D-Wave and SkyWater Technology extended their quantum manufacturing partnership, securing continued access to specialized semiconductor fabrication for D-Wave’s superconducting processors. The agreement also includes applying D-Wave’s technology to improve SkyWater’s manufacturing operations and adds intellectual-property protection. D-Wave Quantum, SkyWater Extend Quantum Chip Manufacturing Partnership to Include IP Protection
• Positive Sentiment: Quantum stocks are rebounding after the prior day’s dilution-driven selloff. D-Wave advanced alongside IonQ and Rigetti as investors reassessed the sector following IonQ’s proposed equity offering. The move appears partly sentiment-driven rather than based on a new QBTS financial result. Quantum Computing Stocks Rebound After Dilution Scare
• Neutral Sentiment: Articles highlighting D-Wave as a potentially attractive long-term quantum-computing investment emphasize its annealing-focused strategy, but they are largely speculative and do not provide new operating or earnings data. Could Investing $5,000 in D-Wave Quantum Stock Today Make You a Millionaire?
• Negative Sentiment: Valuation and dilution concerns continue to weigh on the group. Commentary argues QBTS may be stretched after a roughly 13-fold three-year run, while IonQ’s large equity offering triggered selling across quantum stocks. That raises concerns about high expectations and potential future share dilution. IonQ Falls as Equity Offering Pressures Quantum Stocks
• Negative Sentiment: A securities-law firm is seeking QBTS investors in connection with a potential investigation. The notice does not establish wrongdoing, but it could create headline and legal overhang. QBTS Investor Legal Notice

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. Roth Capital reiterated a "buy" rating and issued a $30.00 target price on shares of D-Wave Quantum in a report on Thursday, August 6th. Wedbush started coverage on shares of D-Wave Quantum in a research note on Monday, August 3rd. They set an "outperform" rating and a $40.00 price target for the company. Zacks Research downgraded shares of D-Wave Quantum from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 18th. Weiss Ratings upgraded shares of D-Wave Quantum from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, August 28th. Finally, Benchmark initiated coverage on shares of D-Wave Quantum in a research note on Monday, July 27th. They issued a "buy" rating and a $30.00 price objective on the stock. Thirteen equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $36.27.

D-Wave Quantum Stock Up 6.5%

The company has a current ratio of 20.55, a quick ratio of 20.42 and a debt-to-equity ratio of 0.03. The stock has a market capitalization of $4.74 billion, a PE ratio of -18.04 and a beta of 2.18. The stock's fifty day simple moving average is $17.39 and its 200-day simple moving average is $19.71.

D-Wave Quantum (NASDAQ:QBTS - Get Free Report) last announced its 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). D-Wave Quantum had a negative net margin of 2,001.59% and a negative return on equity of 26.67%. The firm had revenue of $3.08 million during the quarter, compared to analysts' expectations of $4.03 million. During the same quarter in the prior year, the company earned ($0.08) EPS. The business's revenue for the quarter was down 0.6 on a year-over-year basis. As a group, sell-side analysts forecast that D-Wave Quantum Inc. will post -0.46 EPS for the current fiscal year.

Insider Buying and Selling

In other D-Wave Quantum news, VP Sophie Ames sold 3,070 shares of the stock in a transaction dated 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 sale, the vice president owned 589,009 shares in the company, valued at approximately $9,983,702.55. This trade represents a 0.52% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.30% of the company's stock.

Hedge Funds Weigh In On D-Wave Quantum

Several institutional investors have recently modified their holdings of QBTS. BlackRock Inc. purchased a new stake in shares of D-Wave Quantum during the 2nd quarter worth approximately $795,206,000. Bank of America Corp DE bought a new stake in shares of D-Wave Quantum in the 2nd quarter worth approximately $104,183,000. Van ECK Associates Corp raised its holdings in shares of D-Wave Quantum by 52.6% in the 2nd quarter. Van ECK Associates Corp now owns 2,339,788 shares of the company's stock worth $56,132,000 after purchasing an additional 806,835 shares during the period. Bank of New York Mellon Corp purchased a new position in D-Wave Quantum in the second quarter valued at approximately $54,951,000. Finally, Wellington Management Group LLP lifted its stake in D-Wave Quantum by 372.2% in the second quarter. Wellington Management Group LLP now owns 1,820,070 shares of the company's stock valued at $43,663,000 after purchasing an additional 1,434,657 shares during the last quarter. 42.47% of the stock is owned by 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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