Rosenblatt Securities Reiterates Buy Rating for D-Wave Quantum (NYSE:QBTS)

Key Points

• Rosenblatt Securities reiterated its Buy rating on D-Wave Quantum and kept a $43 price target, implying about 103% upside from the prior close.
• Analyst sentiment remains broadly positive overall, with several firms maintaining or initiating Buy ratings; D-Wave currently has a Moderate Buy consensus and an average price target of $34.67.
• The stock fell to $21.16 in midday trading, while the company’s latest earnings showed a smaller-than-expected loss but a big revenue miss and a sharp year-over-year revenue decline.

D-Wave Quantum (NYSE:QBTS - Get Free Report)'s stock had its "buy" rating restated by investment analysts at Rosenblatt Securities in a report issued on Wednesday,Benzinga reports. They currently have a $43.00 target price on the stock. Rosenblatt Securities' target price suggests a potential upside of 103.25% from the company's previous close.

Other research analysts have also recently issued reports about the stock. Jefferies Financial Group reissued a "buy" rating on shares of D-Wave Quantum in a report on Tuesday. Canaccord Genuity Group set a $41.00 price objective on D-Wave Quantum in a report on Wednesday. Wall Street Zen downgraded D-Wave Quantum from a "hold" rating to a "sell" rating in a research note on Saturday, February 7th. TD Cowen started coverage on D-Wave Quantum in a report on Thursday, February 12th. They issued a "buy" rating for the company. Finally, Roth Mkm decreased their price target on D-Wave Quantum from $40.00 to $30.00 and set a "buy" rating on the stock in a research note on Friday, February 27th. Fourteen analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, D-Wave Quantum has an average rating of "Moderate Buy" and a consensus price target of $34.67.

D-Wave Quantum Stock Performance

NYSE:QBTS traded down $1.19 during midday trading on Wednesday, reaching $21.16. The stock had a trading volume of 6,692,724 shares, compared to its average volume of 29,485,992. The firm has a fifty day simple moving average of $17.90 and a two-hundred day simple moving average of $22.80. D-Wave Quantum has a 12-month low of $10.60 and a 12-month high of $46.75. The company has a quick ratio of 42.25, a current ratio of 42.38 and a debt-to-equity ratio of 0.04. The stock has a market cap of $7.83 billion, a P/E ratio of -19.27 and a beta of 1.95.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings data on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, topping analysts' consensus estimates of ($0.08) by $0.03. D-Wave Quantum had a negative net margin of 1,444.10% and a negative return on equity of 58.58%. The company had revenue of $2.86 million during the quarter, compared to the consensus estimate of $4.19 million. During the same quarter in the prior year, the firm earned ($0.02) EPS. D-Wave Quantum's quarterly revenue was down 80.9% on a year-over-year basis. On average, equities analysts expect that D-Wave Quantum will post -0.44 EPS for the current year.

Insider Buying and Selling at D-Wave Quantum

In related news, Director Rohit Ghai sold 10,000 shares of D-Wave Quantum stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $17.62, for a total transaction of $176,200.00. Following the completion of the transaction, the director directly owned 27,778 shares in the company, valued at $489,448.36. The trade was a 26.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director John D. Dilullo sold 8,000 shares of the company's stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $18.01, for a total value of $144,080.00. Following the completion of the sale, the director directly owned 19,803 shares in the company, valued at approximately $356,652.03. The trade was a 28.77% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 31,776 shares of company stock valued at $574,571. Company insiders own 3.20% of the company's stock.

Institutional Trading of D-Wave Quantum

Hedge funds have recently added to or reduced their stakes in the business. Baader Bank Aktiengesellschaft purchased a new stake in D-Wave Quantum in the first quarter valued at approximately $356,000. Florida Financial Advisors LLC increased its holdings in shares of D-Wave Quantum by 16.0% during the 1st quarter. Florida Financial Advisors LLC now owns 35,704 shares of the company's stock worth $515,000 after buying an additional 4,927 shares during the last quarter. Dimensional Fund Advisors LP raised its position in shares of D-Wave Quantum by 289.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 143,064 shares of the company's stock worth $2,064,000 after buying an additional 106,324 shares during the period. Parallel Advisors LLC boosted its holdings in D-Wave Quantum by 545.5% in the first quarter. Parallel Advisors LLC now owns 1,788 shares of the company's stock valued at $26,000 after acquiring an additional 1,511 shares during the last quarter. Finally, Swiss National Bank grew its position in D-Wave Quantum by 2.8% during the first quarter. Swiss National Bank now owns 686,300 shares of the company's stock valued at $9,903,000 after acquiring an additional 18,600 shares during the period. 42.47% of the stock is owned by institutional investors and hedge funds.

More D-Wave Quantum News

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

• Positive Sentiment: Needham & Company reaffirmed its Buy rating on D-Wave Quantum and raised its price target to $40, implying substantial upside from current levels. Needham & Company reaffirms Buy on D-Wave Quantum
• Positive Sentiment: D-Wave reported a smaller-than-expected quarterly loss of $0.05 per share versus estimates for a $0.08 loss, while bookings surged nearly 2,000%, highlighting strong customer demand. D-Wave earnings: revenue falls, bookings surge
• Neutral Sentiment: Mizuho lowered its price target on D-Wave Quantum from $31 to $29 but kept an Outperform rating, suggesting the firm still sees upside even after trimming expectations. Mizuho lowers target on D-Wave Quantum
• Neutral Sentiment: The company also issued a correction to its quarterly outstanding share disclosure, which looks more like a filing cleanup than a major business development. D-Wave corrects quarterly outstanding share disclosure
• Negative Sentiment: Investors remain focused on the big revenue miss: quarterly revenue came in at $2.86 million versus estimates of $4.19 million, and revenue fell sharply year over year. D-Wave earnings report
• Negative Sentiment: The company’s sales decline and continued losses are reminding traders that commercialization is still uneven, which is weighing on sentiment despite the strong bookings headline. Barrons article on D-Wave earnings

About D-Wave Quantum

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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