D-Wave Quantum (NASDAQ:QBTS) Stock Falls 3.6% – Should You Sell?

Shares of D-Wave Quantum Inc. (NASDAQ:QBTS) were down 3.6% during mid-day trading on Monday. The stock traded as low as $16.75 and last traded at $16.78. 13,716,663 shares changed hands during mid-day trading, a decline of 49% from the average session volume of 27,129,072 shares. The stock had previously closed at $17.41.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. B. Riley Financial raised their price objective on D-Wave Quantum from $36.00 to $40.00 and gave the stock a “buy” rating in a research note on Tuesday, June 2nd. Benchmark started coverage on D-Wave Quantum in a research note on Monday, July 27th. They issued a “buy” rating and a $30.00 target price for the company. Canaccord Genuity Group set a $35.00 price target on D-Wave Quantum in a report on Thursday, August 6th. Needham & Company LLC reaffirmed a “buy” rating and set a $40.00 price target on shares of D-Wave Quantum in a research report on Tuesday, June 2nd. Finally, Zacks Research cut D-Wave Quantum from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 18th. Thirteen research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, D-Wave Quantum has an average rating of “Moderate Buy” and an average price target of $36.27.

D-Wave Quantum Stock Performance

The stock has a fifty day simple moving average of $18.18 and a 200-day simple moving average of $19.84. The stock has a market cap of $6.08 billion, a P/E ratio of -23.14 and a beta of 2.15. The company has a debt-to-equity ratio of 0.03, a quick ratio of 20.42 and a current ratio of 20.55.

D-Wave Quantum (NASDAQ:QBTS) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.10) earnings per share for the quarter, missing the consensus estimate of ($0.08) by ($0.02). The firm had revenue of $3.08 million for the quarter, compared to analyst estimates of $4.03 million. D-Wave Quantum had a negative return on equity of 26.67% and a negative net margin of 2,001.59%.The firm’s quarterly revenue was down 0.6 on a year-over-year basis. During the same period in the prior year, the company earned ($0.08) earnings per share. On average, equities analysts expect that D-Wave Quantum Inc. will post -0.46 earnings per share for the current year.

Insider Buying and Selling at D-Wave Quantum

In other news, VP Sophie Ames sold 3,070 shares of D-Wave Quantum stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $16.95, for a total value of $52,036.50. Following the sale, the vice president directly owned 589,009 shares in the company, valued at $9,983,702.55. This trade represents a 0.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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. 1.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in shares of D-Wave Quantum in the 2nd quarter valued at about $795,206,000. Bank of America Corp DE acquired a new stake in shares of D-Wave Quantum in the second quarter valued at about $104,183,000. Goldman Sachs Group Inc. raised its holdings in D-Wave Quantum by 311.6% during the fourth quarter. Goldman Sachs Group Inc. now owns 3,548,013 shares of the company’s stock worth $92,781,000 after acquiring an additional 2,685,980 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in D-Wave Quantum during the second quarter valued at approximately $54,951,000. Finally, Wellington Management Group LLP grew its stake in D-Wave Quantum by 372.2% in the second quarter. Wellington Management Group LLP now owns 1,820,070 shares of the company’s stock valued at $43,663,000 after purchasing an additional 1,434,657 shares in the last quarter. Institutional investors own 42.47% of the company’s stock.

D-Wave Quantum Company Profile

D-Wave Quantum Inc develops quantum computing systems, software, and services for commercial, government, and research customers. The company is best known for its quantum annealing technology, which is designed to help solve complex optimization problems involving areas such as logistics, scheduling, manufacturing, artificial intelligence, and financial modeling.

D-Wave also develops gate-model quantum computing technology and provides access to its systems through cloud-based services, including the Leap quantum application environment.