D-Wave Quantum (NYSE:QBTS) Stock Price Down 2.2% – Should You Sell?

D-Wave Quantum Inc. (NYSE:QBTS) fell 2.2% during trading on Wednesday . The stock traded as low as $20.13 and last traded at $20.5870. Approximately 15,483,214 shares changed hands during mid-day trading, a decline of 51% from the average daily volume of 31,680,391 shares. The stock had previously closed at $21.06.

Wall Street Analyst Weigh In

Several research firms have issued reports on QBTS. Weiss Ratings upgraded shares of D-Wave Quantum from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, June 23rd. Jefferies Financial Group reissued a “buy” rating on shares of D-Wave Quantum in a report on Tuesday, May 12th. Mizuho raised their target price on shares of D-Wave Quantum from $29.00 to $35.00 and gave the stock an “outperform” rating in a report on Monday, June 15th. Canaccord Genuity Group decreased their target price on shares of D-Wave Quantum from $43.00 to $41.00 and set a “buy” rating for the company in a research note on Wednesday, May 13th. Finally, Roth Capital increased their price target on D-Wave Quantum from $30.00 to $40.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. Fourteen equities 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. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $36.80.

D-Wave Quantum Stock Performance

The company has a debt-to-equity ratio of 0.03, a quick ratio of 21.31 and a current ratio of 21.41. The stock has a market cap of $7.43 billion, a P/E ratio of -17.77 and a beta of 2.11. The business’s 50-day moving average price is $23.88 and its 200-day moving average price is $22.01.

D-Wave Quantum (NYSE:QBTS) last announced its earnings results on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, topping analysts’ consensus estimates of ($0.08) by $0.03. D-Wave Quantum had a negative return on equity of 44.06% and a negative net margin of 2,957.23%.The company had revenue of $2.86 million for the quarter, compared to analysts’ expectations of $4.19 million. During the same period last year, the firm earned ($0.02) EPS. D-Wave Quantum’s revenue for the quarter was down 80.9% compared to the same quarter last year. As a group, sell-side analysts expect that D-Wave Quantum Inc. will post -0.43 earnings per share for the current fiscal year.

Insider Activity at D-Wave Quantum

In related news, VP Sophie C. Ames sold 23,025 shares of the stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $18.98, for a total value of $437,014.50. Following the completion of the sale, the vice president directly owned 596,803 shares of the company’s stock, valued at approximately $11,327,320.94. This represents a 3.71% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John D. Dilullo sold 7,850 shares of the firm’s stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $24.43, for a total transaction of $191,775.50. Following the sale, the director owned 21,310 shares in the company, valued at approximately $520,603.30. The trade was a 26.92% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,363,842 shares of company stock worth $35,802,656 in the last quarter. 1.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. CoreCap Advisors LLC raised its holdings in D-Wave Quantum by 9.2% during the second quarter. CoreCap Advisors LLC now owns 6,115 shares of the company’s stock valued at $147,000 after acquiring an additional 515 shares during the period. Sigma Planning Corp boosted its stake 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 acquiring an additional 560 shares during the period. AlphaStar Capital Management LLC grew its position in shares of D-Wave Quantum by 2.2% during the fourth quarter. AlphaStar Capital Management LLC now owns 27,063 shares of the company’s stock worth $708,000 after purchasing an additional 592 shares in the last quarter. Noble Wealth Management PBC grew its position in shares of D-Wave Quantum by 6.7% during the fourth quarter. Noble Wealth Management PBC now owns 9,600 shares of the company’s stock worth $251,000 after purchasing an additional 600 shares in the last quarter. Finally, Thoroughbred Financial Services LLC raised its stake in D-Wave Quantum by 0.5% during the 4th quarter. Thoroughbred Financial Services LLC now owns 131,852 shares of the company’s stock valued at $3,447,000 after purchasing an additional 602 shares during the period. 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.