D-Wave Quantum (NASDAQ:QBTS) Shares Up 8.5% – What’s Next?

D-Wave Quantum Inc. (NASDAQ:QBTS)’s share price rose 8.5% during mid-day trading on Friday . The stock traded as high as $20.60 and last traded at $20.39. 19,461,048 shares changed hands during trading, a decline of 32% from the average session volume of 28,779,014 shares. The stock had previously closed at $18.80.

Key Stories Impacting D-Wave Quantum

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

• Positive Sentiment: BMO initiated coverage with an Outperform rating and a $35 price target, implying substantial upside from recent trading levels. The firm highlighted D-Wave’s commercial-revenue opportunity, providing the clearest immediate catalyst for the stock. BMO coverage article
• Positive Sentiment: NTT DOCOMO deployed a second production quantum application powered by D-Wave to improve mobile-network planning and efficiency. The deployment expands the relationship beyond pilot projects and supports the case that D-Wave’s technology is gaining real-world enterprise adoption. NTT DOCOMO deployment article
• Positive Sentiment: Demand indicators were strong: first-half bookings reportedly surged 1,120% year over year to $35.5 million, remaining performance obligations rose 668% to $40.7 million, and nearly $23 million of contracted revenue could be recognized within 12 months. Commercial customers generated 67.7% of first-half revenue, with six applications in production. D-Wave demand article
• Neutral Sentiment: Quantum-computing stocks broadly rebounded, lifting sentiment across the group, although the move was not solely company-specific. Quantum stocks article
• Negative Sentiment: Analysts and market commentators continue to flag D-Wave’s expensive valuation after its roughly 15-fold three-year gain. Investors are increasingly focused on whether bookings and deployments can translate into sustained revenue and eventual profitability. D-Wave valuation article
• Negative Sentiment: Zacks Research downgraded the stock from Strong Buy to Hold, while a prior broad quantum-stock selloff demonstrated the sector’s high volatility. Zacks downgrade article

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the stock. Wall Street Zen raised shares of D-Wave Quantum from a “strong sell” rating to a “sell” rating in a research report on Saturday, August 8th. Mizuho boosted their price target on D-Wave Quantum from $29.00 to $35.00 and gave the company an “outperform” rating in a report on Monday, June 15th. Wedbush initiated coverage on D-Wave Quantum in a research note on Monday, August 3rd. They set an “outperform” rating and a $40.00 price target on the stock. Cantor Fitzgerald restated an “overweight” rating and set a $40.00 price objective on shares of D-Wave Quantum in a report on Wednesday, May 13th. Finally, BMO Capital Markets began coverage on D-Wave Quantum in a report on Thursday. They set an “outperform” rating and a $35.00 price objective on the stock. Thirteen 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 stock. According to data from MarketBeat.com, D-Wave Quantum currently has a consensus rating of “Moderate Buy” and a consensus price target of $36.27.

D-Wave Quantum Trading Up 8.5%

The firm’s 50 day simple moving average is $20.68 and its 200-day simple moving average is $20.23. The company has a market capitalization of $7.54 billion, a PE ratio of -28.72 and a beta of 2.15. The company has a quick ratio of 20.42, a current ratio of 20.55 and a debt-to-equity ratio of 0.03.

D-Wave Quantum (NASDAQ:QBTS) last issued its earnings results on Thursday, August 6th. The company reported ($0.10) EPS for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.02). The business had revenue of $3.08 million during the quarter, compared to analysts’ expectations of $4.03 million. D-Wave Quantum had a negative net margin of 2,001.59% and a negative return on equity of 26.67%. The business’s revenue was down 0.6 on a year-over-year basis. During the same period in the prior year, the business posted ($0.08) EPS. As a group, equities research analysts anticipate that D-Wave Quantum Inc. will post -0.46 EPS for the current year.

Insider Buying and Selling

In other D-Wave Quantum news, Director Rohit Ghai sold 13,518 shares of the business’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $26.41, for a total transaction of $357,010.38. Following the transaction, the director owned 23,617 shares in the company, valued at $623,724.97. The trade was a 36.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Markovich sold 200,000 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $25.71, for a total value of $5,142,000.00. Following the completion of the sale, the chief financial officer owned 1,142,820 shares of the company’s stock, valued at approximately $29,381,902.20. This trade represents a 14.89% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 1,012,065 shares of company stock valued at $26,245,703 over the last ninety days. Insiders own 1.30% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in QBTS. Nykredit A S purchased a new stake in D-Wave Quantum during the 2nd quarter worth $279,000. Bedel Financial Consulting Inc. acquired a new stake in shares of D-Wave Quantum during the second quarter valued at about $209,000. Proficio Capital Partners LLC purchased a new stake in shares of D-Wave Quantum during the second quarter worth about $549,000. Headlands Technologies LLC purchased a new stake in shares of D-Wave Quantum during the second quarter worth about $854,000. Finally, Sigma Planning Corp lifted its stake in shares of D-Wave Quantum by 82.2% in the second quarter. Sigma Planning Corp now owns 27,794 shares of the company’s stock worth $667,000 after acquiring an additional 12,541 shares in the last quarter. 42.47% of the stock is currently owned by hedge funds and other 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.