D-Wave Quantum (NYSE:QBTS) Trading Down 3.2% – Should You Sell?

D-Wave Quantum Inc. (NYSE:QBTS)’s stock price traded down 3.2% during trading on Monday . The company traded as low as $27.83 and last traded at $29.17. 48,729,059 shares were traded during trading, an increase of 52% from the average session volume of 32,144,949 shares. The stock had previously closed at $30.14.

D-Wave Quantum News Roundup

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

• Positive Sentiment: Rosenblatt Securities reaffirmed its buy rating on D-Wave Quantum and raised its price target to $43, implying meaningful upside and reinforcing bullish sentiment on the stock. D-Wave Quantum had its “buy” rating reaffirmed by Rosenblatt Securities…
• Positive Sentiment: Needham also reiterated a buy rating with a $40 target, adding to the analyst-driven momentum behind QBTS. D-Wave Quantum had its “buy” rating reaffirmed by Needham & Company LLC…
• Positive Sentiment: Reports that D-Wave is set to receive a $100 million federal capital injection, as part of a broader $2 billion U.S. quantum initiative, have strengthened expectations for faster hardware development and commercialization. D-Wave Quantum Draws US$2b Federal Backing…

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the company. Canaccord Genuity Group cut their price objective on D-Wave Quantum from $43.00 to $41.00 and set a “buy” rating for the company in a research report on Wednesday, May 13th. Needham & Company LLC restated a “buy” rating and issued a $40.00 target price on shares of D-Wave Quantum in a report on Tuesday. Roth Mkm increased their target price on D-Wave Quantum from $30.00 to $40.00 and gave the company a “buy” rating in a report on Tuesday. Zacks Research upgraded D-Wave Quantum from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Finally, Northland Securities initiated coverage on shares of D-Wave Quantum in a research note on Monday, April 20th. They issued a “market perform” rating and a $22.00 price target on the stock. Fourteen research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $36.40.

D-Wave Quantum Price Performance

The company has a debt-to-equity ratio of 0.03, a current ratio of 21.41 and a quick ratio of 21.31. The stock’s fifty day simple moving average is $19.81 and its 200-day simple moving average is $22.11. The company has a market capitalization of $11.09 billion, a P/E ratio of -26.52 and a beta of 2.05.

D-Wave Quantum (NYSE:QBTS) last released its quarterly earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.08) by $0.03. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The company had revenue of $2.86 million during the quarter, compared to analysts’ expectations of $4.19 million. During the same period in the prior year, the company earned ($0.02) earnings per share. The business’s quarterly revenue was down 80.9% compared to the same quarter last year. On average, equities analysts forecast that D-Wave Quantum Inc. will post -0.43 earnings per share for the current fiscal year.

Insider Activity

In other D-Wave Quantum news, VP Sophie C. Ames sold 23,025 shares of the company’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $18.98, for a total transaction of $437,014.50. Following the completion of the sale, the vice president directly owned 596,803 shares in the company, valued at $11,327,320.94. This represents a 3.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Markovich sold 328,752 shares of the company’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $27.70, for a total transaction of $9,106,430.40. Following the sale, the chief financial officer owned 1,442,820 shares of the company’s stock, valued at $39,966,114. This trade represents a 18.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 383,553 shares of company stock valued at $10,118,016 over the last three months. 1.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On D-Wave Quantum

A number of hedge funds have recently bought and sold shares of QBTS. Vanguard Group Inc. boosted its holdings in D-Wave Quantum by 41.2% during the third quarter. Vanguard Group Inc. now owns 38,454,869 shares of the company’s stock valued at $950,220,000 after acquiring an additional 11,218,255 shares during the period. UBS Group AG lifted its stake in shares of D-Wave Quantum by 541.6% in the third quarter. UBS Group AG now owns 12,089,703 shares of the company’s stock valued at $298,737,000 after buying an additional 10,205,427 shares during the period. Northwestern Mutual Wealth Management Co. lifted its stake in shares of D-Wave Quantum by 136,842.4% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,194,866 shares of the company’s stock valued at $83,546,000 after buying an additional 3,192,533 shares during the period. Clear Street Group Inc. bought a new stake in shares of D-Wave Quantum in the third quarter valued at about $75,344,000. Finally, Goldman Sachs Group Inc. lifted its stake in shares of D-Wave Quantum by 311.6% in the fourth quarter. Goldman Sachs Group Inc. now owns 3,548,013 shares of the company’s stock valued at $92,781,000 after buying an additional 2,685,980 shares during the period. 42.47% of the stock is currently owned by institutional investors.

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.