D-Wave Quantum (NASDAQ:QBTS) Trading 6.6% Higher – Time to Buy?

D-Wave Quantum Inc. (NASDAQ:QBTS) shares traded up 6.6% during mid-day trading on Tuesday . The stock traded as high as $18.48 and last traded at $17.67. 35,642,836 shares changed hands during mid-day trading, an increase of 27% from the average session volume of 28,033,402 shares. The stock had previously closed at $16.58.

Key Stories Impacting D-Wave Quantum

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

• Positive Sentiment: The U.S. Commerce Department is reportedly preparing up to $300 million in minority equity investments across D-Wave, Rigetti and Quantinuum. The potential funding could strengthen D-Wave’s balance sheet, extend its cash runway and reinforce government support for domestic quantum technology. Uncle Sam’s Quantum Leap: Feds Fund a $300M Quantum Supercycle
• Positive Sentiment: D-Wave finalized an agreement for up to $100 million under the CHIPS and Science Act, providing non-dilutive strategic capital in addition to federal backing for its quantum-computing development efforts. D-Wave Quantum Finalizes Up To $100 Million U.S. Funding Agreement
• Neutral Sentiment: Director John DiLullo sold 1,100 shares for approximately $19,800 under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by 5.16%, but its preset nature limits its usefulness as a signal of management’s current outlook. D-Wave Quantum Director Stock Sale
• Negative Sentiment: D-Wave issued 7,095,721 shares to the U.S. government as part of the $100 million CHIPS agreement. While the transaction supplies capital, the additional shares create dilution for existing shareholders. D-Wave Issues Shares to U.S. Government
• Negative Sentiment: Several law firms, including Kessler Topaz Meltzer & Check, Pomerantz and KTMC, announced investigations into potential securities-law violations involving D-Wave. The announcements do not establish wrongdoing, but they add headline and potential litigation risk. D-Wave Investor Investigation Alert
• Negative Sentiment: Quantum stocks pulled back as expectations for another Federal Reserve rate move increased. Higher rates tend to pressure high-beta, unprofitable growth companies such as D-Wave by reducing the value investors assign to distant future earnings. Quantum Stocks Fall as Rate-Hike Odds Climb
• Negative Sentiment: D-Wave’s latest quarterly results showed a $0.10 per-share loss and $3.08 million in revenue, missing estimates of a $0.08 loss and $4.03 million in revenue. Continued losses and a very high valuation remain important risks for investors.

Wall Street Analyst Weigh In

QBTS has been the subject of several research analyst reports. Mizuho lifted their price objective on shares of D-Wave Quantum from $29.00 to $35.00 and gave the company an “outperform” rating in a research note on Monday, June 15th. B. Riley Financial upped their price objective on shares of D-Wave Quantum from $36.00 to $40.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. Canaccord Genuity Group set a $35.00 price objective on shares of D-Wave Quantum in a research report on Thursday, August 6th. BMO Capital Markets started coverage on D-Wave Quantum in a report on Thursday, August 20th. They issued an “outperform” rating and a $35.00 price target on the stock. Finally, Benchmark began coverage on D-Wave Quantum in a research note on Monday, July 27th. They issued a “buy” rating and a $30.00 price objective for the company. Thirteen equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on 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 Stock Performance

The company’s 50-day simple moving average is $18.92 and its 200 day simple moving average is $20.02. The stock has a market cap of $6.16 billion, a P/E ratio of -23.46 and a beta of 2.15. The company has a current ratio of 20.55, a quick ratio of 20.42 and a debt-to-equity ratio of 0.03.

D-Wave Quantum (NASDAQ:QBTS) last issued its quarterly 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). D-Wave Quantum had a negative net margin of 2,001.59% and a negative return on equity of 26.67%. The business had revenue of $3.08 million for the quarter, compared to analysts’ expectations of $4.03 million. During the same period in the previous year, the business posted ($0.08) earnings per share. The business’s revenue was down 0.6 compared to the same quarter last year. As a group, sell-side analysts expect that D-Wave Quantum Inc. will post -0.46 EPS for the current fiscal year.

Insider Activity at D-Wave Quantum

In other news, Director Rohit Ghai sold 13,518 shares of the company’s stock in a transaction on 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 of the company’s stock, valued at $623,724.97. This represents a 36.40% decrease in their position. The sale was disclosed in a 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 200,000 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $25.71, for a total transaction of $5,142,000.00. Following the sale, the chief financial officer owned 1,142,820 shares in the company, valued at $29,381,902.20. The trade was a 14.89% decrease in their ownership of the stock. 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. Over the last quarter, insiders have sold 263,731 shares of company stock worth $6,676,339. Insiders own 1.30% of the company’s stock.

Institutional Investors Weigh In On D-Wave Quantum

Hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new position in D-Wave Quantum during the 2nd quarter valued at about $795,206,000. UBS Group AG boosted its holdings in D-Wave Quantum by 541.6% in the 3rd quarter. UBS Group AG now owns 12,089,703 shares of the company’s stock valued at $298,737,000 after purchasing an additional 10,205,427 shares during the period. California State Teachers Retirement System grew its position in shares of D-Wave Quantum by 2,336.6% during the 2nd quarter. California State Teachers Retirement System now owns 9,922,576 shares of the company’s stock valued at $238,043,000 after purchasing an additional 9,515,341 shares in the last quarter. Bank of America Corp DE bought a new stake in D-Wave Quantum during the second quarter valued at $104,183,000. Finally, Northwestern Mutual Wealth Management Co. grew its position in D-Wave Quantum by 136,842.4% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,194,866 shares of the company’s stock worth $83,546,000 after buying an additional 3,192,533 shares in the last quarter. Institutional investors own 42.47% of the company’s stock.

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.