D-Wave Quantum (NYSE:QBTS) Trading Down 3.5% – What’s Next?

D-Wave Quantum Inc. (NYSE:QBTS) shares were down 3.5% during mid-day trading on Wednesday . The company traded as low as $17.87 and last traded at $18.28. Approximately 15,344,901 shares changed hands during trading, a decline of 51% from the average session volume of 31,084,895 shares. The stock had previously closed at $18.95.

Analyst Ratings Changes

Several analysts have recently commented on the stock. Jefferies Financial Group reaffirmed a “buy” rating on shares of D-Wave Quantum in a report on Tuesday, May 12th. Canaccord Genuity Group reduced 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 report on Wednesday, May 13th. Weiss Ratings upgraded shares of D-Wave Quantum from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, June 23rd. Zacks Research raised shares of D-Wave Quantum from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Finally, Stifel Nicolaus set a $35.00 price target on shares of D-Wave Quantum in a report on Tuesday, June 2nd. Fourteen equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $36.80.

D-Wave Quantum Price Performance

The company has a debt-to-equity ratio of 0.03, a current ratio of 21.41 and a quick ratio of 21.31. The stock has a fifty day simple moving average of $23.83 and a 200-day simple moving average of $21.79. The company has a market capitalization of $6.76 billion, a price-to-earnings ratio of -16.18 and a beta of 2.11.

D-Wave Quantum (NYSE:QBTS) last issued its quarterly earnings data on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, topping analysts’ consensus estimates of ($0.08) by $0.03. The business had revenue of $2.86 million for the quarter, compared to analysts’ expectations of $4.19 million. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The business’s revenue was down 80.9% on a year-over-year basis. During the same quarter last year, the company earned ($0.02) EPS. On average, equities research analysts anticipate that D-Wave Quantum Inc. will post -0.42 EPS for the current year.

Insider Activity

In related news, CEO Alan E. Baratz sold 687,627 shares of the firm’s stock in a transaction on Monday, June 8th. The shares were sold at an average price of $26.13, for a total transaction of $17,967,693.51. Following the sale, the chief executive officer owned 3,299,771 shares in the company, valued at approximately $86,223,016.23. This trade represents a 17.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director John D. Dilullo sold 7,850 shares of D-Wave Quantum stock in a transaction on Friday, June 5th. The shares were sold at an average price of $24.43, for a total transaction of $191,775.50. Following the completion of the transaction, the director directly owned 21,310 shares of the company’s stock, valued at $520,603.30. The trade was a 26.92% 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 sold a total of 1,363,842 shares of company stock valued at $35,802,656 in the last three months. Corporate insiders own 1.30% of the company’s stock.

Institutional Investors Weigh In On D-Wave Quantum

A number of institutional investors have recently modified their holdings of QBTS. Root Financial Partners LLC boosted its position in D-Wave Quantum by 388.0% during the fourth quarter. Root Financial Partners LLC now owns 976 shares of the company’s stock worth $26,000 after purchasing an additional 776 shares in the last quarter. Parallel Advisors LLC grew its holdings in D-Wave Quantum by 545.5% in the first quarter. Parallel Advisors LLC now owns 1,788 shares of the company’s stock valued at $26,000 after purchasing an additional 1,511 shares during the period. Kemnay Advisory Services Inc. purchased a new stake in shares of D-Wave Quantum in the fourth quarter valued at approximately $28,000. PeakShares LLC purchased a new stake in shares of D-Wave Quantum in the first quarter valued at approximately $29,000. Finally, EverSource Wealth Advisors LLC raised its stake in shares of D-Wave Quantum by 267.7% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company’s stock worth $30,000 after buying an additional 838 shares during the period. 42.47% of the stock is currently owned by institutional investors and hedge funds.

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.