D-Wave Quantum (NYSE:QBTS) Trading Down 8.6% – Time to Sell?

Shares of D-Wave Quantum Inc. (NYSE:QBTS) traded down 8.6% during mid-day trading on Friday . The company traded as low as $20.20 and last traded at $20.2350. 23,630,714 shares were traded during trading, a decline of 20% from the average session volume of 29,631,393 shares. The stock had previously closed at $22.13.

Key Stories Impacting D-Wave Quantum

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

• Positive Sentiment: Several firms reiterated bullish views on QBTS, including Buy or Overweight ratings from Cantor Fitzgerald, Canaccord Genuity, Needham and Rosenblatt, signaling that analysts still see long-term upside. Article Title
• Positive Sentiment: The company’s Q1 update showed record bookings of $33.4 million, which suggests demand for its quantum systems and services remains strong even though revenue was lower than expected. Article Title
• Neutral Sentiment: Coverage this week highlighted D-Wave as a closely watched name in the quantum-computing trade, with investors debating whether recent weakness is a buying opportunity after the Q1 reaction. Article Title
• Negative Sentiment: QBTS is being hit by a sector-wide selloff in quantum stocks, which is overshadowing company-specific positives and dragging shares lower alongside peers. Article Title
• Negative Sentiment: Investors are still weighing weak top-line results from Q1, including revenue of $2.86 million, which keeps questions alive about near-term profitability and execution. Article Title

Wall Street Analyst Weigh In

QBTS has been the topic of a number of research analyst reports. Zacks Research upgraded D-Wave Quantum from a “strong sell” rating to a “hold” rating in a research note on Tuesday, April 28th. Mizuho cut their target price on D-Wave Quantum from $31.00 to $29.00 and set an “outperform” rating on the stock in a research note on Wednesday. Benchmark restated a “buy” rating and issued a $35.00 target price on shares of D-Wave Quantum in a research note on Friday, January 23rd. Weiss Ratings downgraded D-Wave Quantum from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Wednesday, April 29th. Finally, Rosenblatt Securities restated a “buy” rating and issued a $43.00 target price on shares of D-Wave Quantum in a research note on Wednesday. Fourteen investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $34.67.

D-Wave Quantum Trading Down 8.6%

The company has a quick ratio of 42.25, a current ratio of 21.41 and a debt-to-equity ratio of 0.03. The firm has a 50 day moving average of $18.05 and a 200 day moving average of $22.64. The firm has a market cap of $7.49 billion, a PE ratio of -17.91 and a beta of 1.95.

D-Wave Quantum (NYSE:QBTS) last posted its quarterly earnings data on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, beating the consensus estimate 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 business had revenue of $2.86 million for the quarter, compared to the consensus estimate of $4.19 million. During the same quarter in the prior year, the business earned ($0.02) earnings per share. D-Wave Quantum’s revenue for the quarter was down 80.9% on a year-over-year basis. Equities analysts anticipate that D-Wave Quantum Inc. will post -0.44 earnings per share for the current year.

Insider Transactions at D-Wave Quantum

In related news, CFO John M. Markovich sold 10,706 shares of the company’s stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $17.63, for a total value of $188,746.78. Following the transaction, the chief financial officer owned 1,451,427 shares in the company, valued at approximately $25,588,658.01. This represents a 0.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Sophie C. Ames sold 3,070 shares of the company’s stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $21.35, for a total value of $65,544.50. Following the completion of the transaction, the vice president owned 643,678 shares in the company, valued at approximately $13,742,525.30. The trade was a 0.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 31,776 shares of company stock worth $574,571 in the last ninety days. Company insiders own 3.20% 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. Csenge Advisory Group raised its holdings in D-Wave Quantum by 99.1% during the 3rd quarter. Csenge Advisory Group now owns 35,886 shares of the company’s stock valued at $887,000 after acquiring an additional 17,860 shares during the period. Mutual Advisors LLC bought a new stake in D-Wave Quantum during the 3rd quarter valued at $1,069,000. Federated Hermes Inc. raised its holdings in D-Wave Quantum by 259,560.6% during the 3rd quarter. Federated Hermes Inc. now owns 184,359 shares of the company’s stock valued at $4,556,000 after acquiring an additional 184,288 shares during the period. Caitong International Asset Management Co. Ltd raised its holdings in D-Wave Quantum by 370.9% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 96,248 shares of the company’s stock valued at $2,378,000 after acquiring an additional 75,807 shares during the period. Finally, SG Americas Securities LLC raised its holdings in D-Wave Quantum by 254.7% during the 4th quarter. SG Americas Securities LLC now owns 2,272,020 shares of the company’s stock valued at $59,413,000 after acquiring an additional 1,631,415 shares during the period. 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.