D-Wave Quantum (NYSE:QBTS) Trading Down 5.3% – Time to Sell?

Shares of D-Wave Quantum Inc. (NYSE:QBTS) dropped 5.3% during mid-day trading on Friday . The company traded as low as $13.71 and last traded at $13.8790. Approximately 18,060,750 shares were traded during trading, a decline of 38% from the average daily volume of 29,325,928 shares. The stock had previously closed at $14.65.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. Evercore assumed coverage on shares of D-Wave Quantum in a research report on Wednesday, December 3rd. They issued an “outperform” rating and a $44.00 target price on the stock. TD Cowen began coverage on shares of D-Wave Quantum in a report on Thursday, February 12th. They set a “buy” rating for the company. Needham & Company LLC dropped their price target on D-Wave Quantum from $48.00 to $40.00 and set a “buy” rating for the company in a research note on Thursday, February 26th. Zacks Research downgraded D-Wave Quantum from a “hold” rating to a “strong sell” rating in a report on Friday, March 6th. Finally, Benchmark restated a “buy” rating and set a $35.00 price objective on shares of D-Wave Quantum in a research report on Friday, January 23rd. Fourteen investment analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, D-Wave Quantum currently has a consensus rating of “Moderate Buy” and an average target price of $36.50.

D-Wave Quantum Trading Down 5.3%

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 company has a market cap of $5.13 billion, a price-to-earnings ratio of -12.62 and a beta of 1.61. The firm has a 50 day moving average price of $19.78 and a two-hundred day moving average price of $25.14.

D-Wave Quantum (NYSE:QBTS) last announced its earnings results on Thursday, February 26th. The company reported ($0.09) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.04). The company had revenue of $2.75 million during the quarter, compared to the consensus estimate of $3.74 million. D-Wave Quantum had a negative net margin of 1,444.10% and a negative return on equity of 58.58%. The company’s revenue was up 21.7% compared to the same quarter last year. As a group, equities analysts forecast that D-Wave Quantum Inc. will post -0.41 earnings per share for the current year.

Insider Activity

In related news, CEO Alan E. Baratz sold 35,013 shares of the business’s stock in a transaction on Wednesday, January 14th. The shares were sold at an average price of $28.06, for a total value of $982,464.78. Following the transaction, the chief executive officer owned 2,598,150 shares in the company, valued at $72,904,089. The trade was a 1.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John D. Dilullo sold 8,000 shares of the business’s stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $18.01, for a total transaction of $144,080.00. Following the completion of the transaction, the director owned 19,803 shares in the company, valued at approximately $356,652.03. The trade was a 28.77% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 72,898 shares of company stock valued at $1,749,054. Company insiders own 3.20% of the company’s stock.

Institutional Trading of D-Wave Quantum

Large investors have recently bought and sold shares of the business. Baird Financial Group Inc. lifted its stake in shares of 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 purchasing an additional 1,300 shares during the period. Royal Bank of Canada boosted its position in shares of D-Wave Quantum by 59.8% during the 1st 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 grew its stake in D-Wave Quantum by 201.0% during the first quarter. AQR Capital Management LLC now owns 200,765 shares of the company’s stock worth $1,526,000 after purchasing an additional 134,066 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in D-Wave Quantum by 93.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,572 shares of the company’s stock worth $825,000 after purchasing an additional 52,437 shares in the last quarter. Finally, NewEdge Advisors LLC increased its holdings in D-Wave Quantum by 125.7% in the first quarter. NewEdge Advisors LLC now owns 43,786 shares of the company’s stock worth $333,000 after purchasing an additional 24,382 shares in the last quarter. 42.47% of the stock is currently owned by institutional investors and hedge funds.

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.