Stock Traders Purchase High Volume of Call Options on D-Wave Quantum (NYSE:QBTS)

Key Points

• Options traders were unusually bullish on D-Wave Quantum, buying 108,592 call options on Thursday, nearly double the average volume of 55,432 contracts.
• The stock jumped sharply, rising $4.46 to $23.76 on heavy volume, well above its recent average trading activity.
• Quarterly results were mixed: D-Wave beat EPS expectations with a smaller-than-expected loss, but revenue came in below estimates and fell 80.9% year over year.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) was the recipient of unusually large options trading on Thursday. Stock investors bought 108,592 call options on the company. This is an increase of 96% compared to the average volume of 55,432 call options.

D-Wave Quantum Price Performance

Shares of QBTS traded up $4.46 during mid-day trading on Thursday, hitting $23.76. 48,316,989 shares of the stock were exchanged, compared to its average volume of 29,374,971. The company has a debt-to-equity ratio of 0.03, a quick ratio of 21.31 and a current ratio of 21.41. The company has a market cap of $8.79 billion, a PE ratio of -21.06 and a beta of 1.95. D-Wave Quantum has a 52-week low of $12.75 and a 52-week high of $46.75. The firm has a 50-day moving average of $18.06 and a two-hundred day moving average of $22.24.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last released its quarterly earnings results on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, topping the consensus estimate of ($0.08) by $0.03. D-Wave Quantum had a negative return on equity of 44.06% and a negative net margin of 2,957.23%.The company had revenue of $2.86 million during the quarter, compared to analyst estimates of $4.19 million. During the same quarter last year, the business posted ($0.02) earnings per share. The firm's revenue was down 80.9% on a year-over-year basis. On average, equities analysts predict that D-Wave Quantum will post -0.44 earnings per share for the current year.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. Northland Securities assumed coverage on shares of D-Wave Quantum in a research report on Monday, April 20th. They set a "market perform" rating and a $22.00 price target for the company. Needham & Company LLC reiterated a "buy" rating and issued a $40.00 price target on shares of D-Wave Quantum in a research report on Wednesday, May 13th. Cantor Fitzgerald reissued an "overweight" rating and set a $40.00 price objective on shares of D-Wave Quantum in a research report on Wednesday, May 13th. Jefferies Financial Group reaffirmed a "buy" rating on shares of D-Wave Quantum in a report on Tuesday, May 12th. Finally, TD Cowen started coverage on D-Wave Quantum in a research report on Thursday, February 12th. They issued a "buy" rating for the company. Fourteen analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, D-Wave Quantum presently has an average rating of "Moderate Buy" and a consensus target price of $34.67.

Insider Buying and Selling

In related news, Director John D. Dilullo sold 8,000 shares of the business'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 transaction, the director directly owned 19,803 shares in the company, valued at $356,652.03. The trade was a 28.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Rohit Ghai sold 10,000 shares of the company's stock in a transaction on Monday, March 16th. The shares were sold at an average price of $17.62, for a total value of $176,200.00. Following the transaction, the director directly owned 27,778 shares in the company, valued at approximately $489,448.36. The trade was a 26.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 31,776 shares of company stock worth $574,571. 3.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On D-Wave Quantum

Several institutional investors have recently made changes to their positions in QBTS. Root Financial Partners LLC increased its holdings in shares of D-Wave Quantum by 388.0% in the 4th quarter. Root Financial Partners LLC now owns 976 shares of the company's stock valued at $26,000 after acquiring an additional 776 shares during the period. Parallel Advisors LLC grew its stake 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 purchasing an additional 1,511 shares during the last quarter. Kemnay Advisory Services Inc. bought a new position in D-Wave Quantum in the fourth quarter worth about $28,000. PeakShares LLC purchased a new stake in shares of D-Wave Quantum during the first quarter valued at about $29,000. Finally, EverSource Wealth Advisors LLC boosted its holdings in shares of D-Wave Quantum by 267.7% in the 4th quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company's stock valued at $30,000 after buying an additional 838 shares in the last quarter. Hedge funds and other 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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