D-Wave Quantum (NASDAQ:QBTS) Shares Down 3.8% – Here’s Why

D-Wave Quantum Inc. (NASDAQ:QBTS)’s stock price traded down 3.8% on Tuesday . The stock traded as low as $16.39 and last traded at $16.54. 11,764,899 shares changed hands during trading, a decline of 58% from the average session volume of 28,302,162 shares. The stock had previously closed at $17.20.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on QBTS shares. BMO Capital Markets initiated coverage on shares of D-Wave Quantum in a research note on Thursday, August 20th. They set an “outperform” rating and a $35.00 target price for the company. Cantor Fitzgerald reissued an “overweight” rating and issued a $40.00 target price on shares of D-Wave Quantum in a report on Wednesday, May 13th. Wall Street Zen raised D-Wave Quantum from a “strong sell” rating to a “sell” rating in a research note on Saturday, August 8th. Rosenblatt Securities reiterated a “buy” rating and issued a $43.00 price target on shares of D-Wave Quantum in a research report on Friday, August 7th. Finally, Wedbush started coverage on shares of D-Wave Quantum in a research note on Monday, August 3rd. They set an “outperform” rating and a $40.00 price target for the company. Thirteen 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 company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $36.27.

D-Wave Quantum Stock Performance

The firm’s 50 day simple moving average is $19.84 and its 200 day simple moving average is $20.14. The firm has a market capitalization of $6.12 billion, a price-to-earnings ratio of -23.30 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 released its quarterly earnings results on Thursday, August 6th. The company reported ($0.10) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.02). D-Wave Quantum had a negative return on equity of 26.67% and a negative net margin of 2,001.59%.The business had revenue of $3.08 million during the quarter, compared to analyst estimates of $4.03 million. During the same period in the previous year, the company posted ($0.08) EPS. The business’s revenue for the quarter was down 0.6 compared to the same quarter last year. Sell-side analysts forecast that D-Wave Quantum Inc. will post -0.46 earnings per share for the current fiscal year.

Insider Activity at D-Wave Quantum

In other D-Wave Quantum news, CFO John M. Markovich sold 200,000 shares of the company’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $25.71, for a total value of $5,142,000.00. Following the completion of the transaction, the chief financial officer owned 1,142,820 shares in the company, valued at $29,381,902.20. This represents a 14.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Rohit Ghai sold 13,518 shares of D-Wave Quantum stock in a transaction on Monday, June 15th. The shares were sold at an average price of $26.41, for a total transaction of $357,010.38. Following the completion of the transaction, the director owned 23,617 shares in the company, valued at approximately $623,724.97. This represents a 36.40% decrease in their ownership of the stock. 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. Over the last three months, insiders sold 1,009,157 shares of company stock valued at $26,155,555. 1.30% of the stock is owned by company insiders.

Institutional Trading of D-Wave Quantum

Several hedge funds and other institutional investors have recently made changes to their positions in QBTS. Fiduciary Financial Advisors purchased a new stake in D-Wave Quantum during the second quarter worth $25,000. Root Financial Partners LLC lifted its holdings in shares of D-Wave Quantum by 388.0% during the 4th quarter. Root Financial Partners LLC now owns 976 shares of the company’s stock worth $26,000 after acquiring an additional 776 shares during the period. Parallel Advisors LLC raised its position in shares of D-Wave Quantum by 545.5% in the 1st quarter. Parallel Advisors LLC now owns 1,788 shares of the company’s stock worth $26,000 after buying an additional 1,511 shares during the period. Kemnay Advisory Services Inc. acquired a new position in shares of D-Wave Quantum in the 4th quarter valued at about $28,000. Finally, PeakShares LLC acquired a new position in shares of D-Wave Quantum during the 1st quarter valued at $29,000. Institutional investors and hedge funds own 42.47% of the company’s stock.

D-Wave Quantum Company Profile

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.