Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares (NASDAQ:XNDU) Shares Gap Down on Disappointing Earnings

Key Points

• Xanadu shares fell after disappointing quarterly results, opening at $2.57 versus the prior close of $2.80 and last trading at $2.61. EPS was a loss of $0.11, missing analysts’ expected loss of $0.09; revenue was $1.31 million.
• Analyst opinions are mixed, though the stock carries a consensus “Moderate Buy” rating and an average price target of $23.15. Recent target changes include RBC lowering its target to $13 and Canaccord cutting its target to $34.
• Several institutional investors initiated or increased positions in the third quarter, including Lockheed Martin Investment Management, which acquired a stake valued at approximately $10.6 million.

Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares (NASDAQ:XNDU - Get Free Report) shares gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $2.80, but opened at $2.57. Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares shares last traded at $2.61, with a volume of 1,419,947 shares changing hands.

The quantum computing company reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.02). The company had revenue of $1.31 million for the quarter.

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. Royal Bank Of Canada decreased their price target on shares of Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares to $13.00 and set an "outperform" rating on the stock in a research report on Thursday. Morgan Stanley began coverage on shares of Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares in a research note on Thursday, October 15th. They issued an "equal weight" rating and a $3.75 target price on the stock. Canadian Imperial Bank of Commerce started coverage on Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares in a research report on Tuesday, July 28th. They set a "sector outperform" rating and a $22.00 target price for the company. Canaccord Genuity Group reduced their price target on shares of Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares from $45.00 to $34.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Finally, Weiss Ratings upgraded Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, October 21st. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $23.15.

Institutional Investors Weigh In On Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares

Institutional investors have recently modified their holdings of the business. Lockheed Martin Investment Management Co. acquired a new position in Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares in the third quarter valued at approximately $10,575,000. Apollon Wealth Management LLC bought a new position in Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares in the third quarter valued at approximately $57,000. Cibc World Market Inc. bought a new position in Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares in the third quarter valued at approximately $272,000. Jefferies Financial Group Inc. acquired a new stake in Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares during the 3rd quarter worth $826,000. Finally, TD Waterhouse Canada Inc. grew its holdings in Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares by 1,113.5% during the 3rd quarter. TD Waterhouse Canada Inc. now owns 18,810 shares of the quantum computing company's stock worth $84,000 after acquiring an additional 17,260 shares during the period.

Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares Stock Down 6.8%

The business's fifty day simple moving average is $4.89 and its 200 day simple moving average is $11.11. The stock has a market cap of $794.02 million, a price-to-earnings ratio of -6.21 and a beta of 15.30. The company has a current ratio of 25.53, a quick ratio of 25.09 and a debt-to-equity ratio of 0.10.

About Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares

Xanadu Quantum Technologies Limited is a Canadian quantum computing company that develops quantum computers based on photonics, using particles of light to process information. Its work includes building quantum hardware and developing software intended to help researchers and businesses create and run quantum applications. The company also develops PennyLane, an open-source software library for quantum computing and quantum machine learning. Xanadu has made quantum computing tools and hardware available through cloud-based services, supporting users beyond its home base in Toronto, Canada.

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