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

Key Points

• D-Wave Quantum shares rose 6.6% to $17.67 in heavy trading after the U.S. Commerce Department finalized a $100 million CHIPS Act research-and-development agreement, including a minority equity stake in the company.
• Wall Street remains broadly optimistic, with 13 analysts rating QBTS a Buy and a consensus “Moderate Buy” rating with a $36.27 price target. However, the government investment could dilute existing shareholders.
• Significant risks remain: D-Wave reported a $0.10-per-share quarterly loss and $3.08 million in revenue, below expectations, while its elevated valuation, ongoing losses, commercialization challenges and recent insider selling add caution.

Shares of D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report) shot up 6.6% during mid-day trading on Tuesday . The stock traded as high as $18.48 and last traded at $17.67. 35,642,836 shares traded hands during trading, an increase of 27% from the average session volume of 28,033,402 shares. The stock had previously closed at $16.58.

Key D-Wave Quantum News

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

• Positive Sentiment: The U.S. Department of Commerce finalized a $100 million CHIPS Act research-and-development agreement with D-Wave. The government will receive a minority, non-controlling equity stake, providing funding to scale the company’s next-generation quantum-computing systems while strengthening its relationship with federal agencies. D-Wave, Rigetti, Quantinuum land $100M in CHIPS Act funding
• Positive Sentiment: The funding announcement triggered a broader rally in quantum-computing stocks. Investors viewed the government’s equity investment as validation of the sector’s strategic importance and as a source of capital that could accelerate D-Wave’s research, production and commercial adoption. These 3 Quantum Stocks Are on the Rise as US Government Takes Minority Stakes
• Neutral Sentiment: D-Wave’s analyst consensus remains around “Moderate Buy,” suggesting Wall Street sees long-term potential but is not uniformly bullish. The government deal may improve sentiment, but the equity component could also create some dilution for existing shareholders. D-Wave Quantum Receives Average Rating of Moderate Buy
• Negative Sentiment: Analysts continue to flag D-Wave’s rising losses, weak conversion of bookings into revenue and elevated valuation. The company recently reported a quarterly loss of $0.10 per share and revenue of $3.08 million, below expectations of $4.03 million, underscoring execution and commercialization risks. Rising Risks Overshadow D-Wave Quantum Booking
• Negative Sentiment: After a substantial multiyear share-price increase, QBTS still screens as expensive, leaving the stock vulnerable if growth or adoption falls short. Recent volatility and legal scrutiny add further risk for investors buying at the current premium. D-Wave Quantum Stock Trades at a Premium

Wall Street Analyst Weigh In

A number of brokerages recently commented on QBTS. Rosenblatt Securities reiterated a "buy" rating and issued a $43.00 target price on shares of D-Wave Quantum in a research report on Friday, August 7th. Benchmark started coverage on D-Wave Quantum in a research report on Monday, July 27th. They set a "buy" rating and a $30.00 price target on the stock. B. Riley Financial raised their target price on shares of D-Wave Quantum from $36.00 to $40.00 and gave the stock a "buy" rating in a report on Tuesday, June 2nd. Roth Capital restated a "buy" rating and issued a $30.00 price objective on shares of D-Wave Quantum in a research report on Thursday, August 6th. Finally, Wedbush began coverage on D-Wave Quantum in a research note on Monday, August 3rd. They issued an "outperform" rating and a $40.00 price target for the company. 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 company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $36.27.

D-Wave Quantum Stock Performance

The company has a market capitalization of $6.54 billion, a PE ratio of -24.89 and a beta of 2.15. The business's 50-day moving average is $19.17 and its 200-day moving average is $20.04. 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 announced 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). D-Wave Quantum had a negative return on equity of 26.67% and a negative net margin of 2,001.59%.The business had revenue of $3.08 million during the quarter, compared to analysts' expectations of $4.03 million. During the same quarter last year, the company posted ($0.08) EPS. D-Wave Quantum's revenue for the quarter was down 0.6 compared to the same quarter last year. On average, research analysts anticipate that D-Wave Quantum Inc. will post -0.46 earnings per share for the current year.

Insider Activity at D-Wave Quantum

In other news, Director Rohit Ghai sold 13,518 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $26.41, for a total value of $357,010.38. Following the sale, the director directly owned 23,617 shares of the company's stock, valued at approximately $623,724.97. This represents a 36.40% 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. Also, CFO John M. Markovich sold 200,000 shares of the firm's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $25.71, for a total value of $5,142,000.00. Following the transaction, the chief financial officer owned 1,142,820 shares of the company's stock, valued at $29,381,902.20. The trade was a 14.89% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 262,631 shares of company stock valued at $6,656,539 in the last 90 days. Corporate insiders own 1.30% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Baird Financial Group Inc. lifted its position in D-Wave Quantum by 12.0% in the 1st quarter. Baird Financial Group Inc. now owns 12,135 shares of the company's stock valued at $92,000 after acquiring an additional 1,300 shares in the last quarter. Royal Bank of Canada lifted its holdings in shares of D-Wave Quantum by 59.8% during the first quarter. Royal Bank of Canada now owns 162,088 shares of the company's stock valued at $1,231,000 after purchasing an additional 60,668 shares in the last quarter. AQR Capital Management LLC lifted its holdings in shares of D-Wave Quantum by 201.0% during the first quarter. AQR Capital Management LLC now owns 200,765 shares of the company's stock valued at $1,526,000 after purchasing an additional 134,066 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in D-Wave Quantum by 93.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,572 shares of the company's stock worth $825,000 after buying an additional 52,437 shares in the last quarter. Finally, NewEdge Advisors LLC lifted its stake in D-Wave Quantum by 125.7% during the 1st quarter. NewEdge Advisors LLC now owns 43,786 shares of the company's stock valued at $333,000 after acquiring an additional 24,382 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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