D-Wave Quantum (NASDAQ:QBTS) Trading 1.2% Higher - Should You Buy?

Key Points

• D-Wave Quantum shares rose 1.2% to $17.20, although trading volume was 59% below the average session volume. Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $36.27.
• The company’s latest quarterly results fell short of expectations: it reported a loss of $0.10 per share versus the $0.08 consensus loss, while revenue of $3.08 million missed estimates of $4.03 million. D-Wave also posted a deeply negative net margin of 2,001.59%.
• Insiders sold more than $26.2 million of stock over the past 90 days, while institutional ownership stands at 42.47%; major investors including BlackRock and UBS have recently established or expanded positions.

D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report) shares traded up 1.2% during trading on Monday . The company traded as high as $17.35 and last traded at $17.20. Approximately 11,529,087 shares were traded during trading, a decline of 59% from the average session volume of 28,391,535 shares. The stock had previously closed at $16.99.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on QBTS. Canaccord Genuity Group set a $35.00 price objective on D-Wave Quantum in a research report on Thursday, August 6th. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $40.00 target price on shares of D-Wave Quantum in a research note on Wednesday, May 13th. Mizuho lifted their target price on D-Wave Quantum from $29.00 to $35.00 and gave the stock an "outperform" rating in a report on Monday, June 15th. Weiss Ratings lowered D-Wave Quantum from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Tuesday, August 11th. Finally, Jefferies Financial Group set a $40.00 price target on D-Wave Quantum in a report on Friday, August 7th. Thirteen analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $36.27.

D-Wave Quantum Trading Up 1.2%

The firm has a market cap of $6.36 billion, a price-to-earnings ratio of -24.23 and a beta of 2.15. The firm's 50-day moving average is $19.98 and its 200-day moving average is $20.16. 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 released 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 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 net margin of 2,001.59% and a negative return on equity of 26.67%. The firm's quarterly revenue was down 0.6 on a year-over-year basis. During the same period last year, the business posted ($0.08) earnings per share. As a group, sell-side analysts anticipate that D-Wave Quantum Inc. will post -0.46 EPS for the current fiscal year.

Insiders Place Their Bets

In other D-Wave Quantum news, CEO Alan E. Baratz sold 687,627 shares of the business's stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $26.13, for a total transaction of $17,967,693.51. Following the completion of the sale, the chief executive officer directly owned 3,299,771 shares of the company's stock, valued at approximately $86,223,016.23. The trade was a 17.25% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Sophie C. Ames sold 3,070 shares of the stock in a transaction that occurred 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 directly owned 589,009 shares of the company's stock, valued at approximately $9,983,702.55. This trade represents a 0.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,012,065 shares of company stock worth $26,245,703 in the last 90 days. Company insiders own 1.30% of the company's stock.

Institutional Investors Weigh In On D-Wave Quantum

Institutional investors have recently bought and sold shares of the stock. BlackRock Inc. purchased a new position in D-Wave Quantum in the second quarter valued at approximately $795,206,000. UBS Group AG increased its position in D-Wave Quantum by 541.6% in the third quarter. UBS Group AG now owns 12,089,703 shares of the company's stock worth $298,737,000 after buying an additional 10,205,427 shares during the last quarter. California State Teachers Retirement System raised its stake in shares of D-Wave Quantum by 2,336.6% in the second quarter. California State Teachers Retirement System now owns 9,922,576 shares of the company's stock valued at $238,043,000 after buying an additional 9,515,341 shares during the period. Geode Capital Management LLC lifted its position in shares of D-Wave Quantum by 11.5% during the 4th quarter. Geode Capital Management LLC now owns 8,394,726 shares of the company's stock valued at $220,085,000 after buying an additional 866,405 shares during the last quarter. Finally, State Street Corp grew its stake in shares of D-Wave Quantum by 5.3% during the 4th quarter. State Street Corp now owns 7,707,085 shares of the company's stock worth $201,540,000 after acquiring an additional 385,809 shares during the period. Institutional investors own 42.47% of the company's stock.

D-Wave Quantum Company Profile

D-Wave Quantum Inc NYSE: QBTS develops and provides quantum computing systems, software and services focused on quantum annealing technology. Headquartered in Burnaby, British Columbia, D-Wave designs specialized processors that leverage quantum mechanics to solve complex optimization and sampling problems. Since its founding in 1999 by physicists including Geordie Rose, the company has pursued the development of commercially viable quantum hardware and accompanying software tools.

The company’s product portfolio centers on its quantum annealers, which are complemented by hybrid solvers that integrate classical and quantum computing resources.

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