D-Wave Quantum (NYSE:QBTS) Shares Down 5.1% – Should You Sell?

D-Wave Quantum Inc. (NYSE:QBTS) shares fell 5.1% on Wednesday . The stock traded as low as $13.65 and last traded at $13.6910. 21,604,439 shares traded hands during mid-day trading, a decline of 26% from the average session volume of 29,043,879 shares. The stock had previously closed at $14.43.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on QBTS. Roth Mkm dropped their price objective on shares of D-Wave Quantum from $40.00 to $30.00 and set a “buy” rating on the stock in a research note on Friday, February 27th. Wedbush began coverage on D-Wave Quantum in a report on Wednesday, December 17th. They set an “outperform” rating and a $35.00 target price for the company. Wall Street Zen cut D-Wave Quantum from a “hold” rating to a “sell” rating in a research report on Saturday, February 7th. Benchmark reiterated a “buy” rating and issued a $35.00 price target on shares of D-Wave Quantum in a report on Friday, January 23rd. Finally, Canaccord Genuity Group set a $43.00 price target on D-Wave Quantum in a research report on Thursday, January 29th. Fourteen equities research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $36.50.

D-Wave Quantum Stock Performance

The business’s 50-day moving average price is $19.21 and its 200-day moving average price is $25.16. The company has a current ratio of 42.38, a quick ratio of 42.25 and a debt-to-equity ratio of 0.04. The stock has a market cap of $5.06 billion, a PE ratio of -12.45 and a beta of 1.61.

D-Wave Quantum (NYSE:QBTS) last posted its earnings results on Thursday, February 26th. The company reported ($0.09) EPS for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.04). The firm had revenue of $2.75 million for the quarter, compared to analysts’ expectations 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%. D-Wave Quantum’s revenue for the quarter was up 21.7% compared to the same quarter last year. As a group, equities research analysts expect that D-Wave Quantum Inc. will post -0.41 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director John D. Dilullo sold 8,000 shares of the company’s stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $18.01, for a total transaction of $144,080.00. Following the transaction, the director directly owned 19,803 shares of the company’s stock, valued at $356,652.03. This represents a 28.77% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Rohit Ghai sold 10,000 shares of the company’s stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $17.62, for a total value of $176,200.00. Following the transaction, the director directly owned 27,778 shares in the company, valued at $489,448.36. This represents a 26.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 72,898 shares of company stock worth $1,749,054. 3.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On D-Wave Quantum

A number of large investors have recently modified their holdings of QBTS. GAMMA Investing LLC raised its position in shares of D-Wave Quantum by 34.6% in the 3rd quarter. GAMMA Investing LLC now owns 1,874 shares of the company’s stock valued at $46,000 after purchasing an additional 482 shares during the last quarter. Blue Bell Private Wealth Management LLC grew its position in D-Wave Quantum by 5.3% during the 3rd quarter. Blue Bell Private Wealth Management LLC now owns 9,901 shares of the company’s stock worth $245,000 after purchasing an additional 500 shares during the last quarter. Huntington National Bank grew its position in D-Wave Quantum by 17.9% during the 3rd quarter. Huntington National Bank now owns 3,300 shares of the company’s stock worth $82,000 after purchasing an additional 500 shares during the last quarter. bLong Financial LLC increased its stake in D-Wave Quantum by 2.3% during the 2nd quarter. bLong Financial LLC now owns 24,643 shares of the company’s stock valued at $361,000 after purchasing an additional 551 shares in the last quarter. Finally, Sigma Planning Corp raised its holdings in shares of D-Wave Quantum by 3.6% in the fourth quarter. Sigma Planning Corp now owns 16,329 shares of the company’s stock worth $431,000 after buying an additional 560 shares during the last quarter. Hedge funds and other 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.