Brokerages Set D-Wave Quantum Inc. (NASDAQ:QBTS) Price Target at $36.27

D-Wave Quantum Inc. (NASDAQ:QBTS) has been given a consensus recommendation of “Moderate Buy” by the sixteen brokerages that are covering the firm, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and thirteen have assigned a buy rating to the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $36.2667.

Several equities research analysts recently commented on the company. Stifel Nicolaus set a $35.00 price objective on D-Wave Quantum in a report on Tuesday, June 2nd. Benchmark began coverage on shares of D-Wave Quantum in a research note on Monday, July 27th. They set a “buy” rating and a $30.00 target price on the stock. Rosenblatt Securities reaffirmed a “buy” rating and set a $43.00 price target on shares of D-Wave Quantum in a report on Friday, August 7th. Zacks Research cut shares of D-Wave Quantum from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 18th. Finally, Weiss Ratings upgraded shares of D-Wave Quantum from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, August 28th.

D-Wave Quantum News Summary

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

• Positive Sentiment: The U.S. Commerce Department plans to invest up to $300 million for minority equity stakes in D-Wave, Rigetti Computing and Quantinuum. For D-Wave, the previously announced CHIPS Act agreement provides up to $100 million, strengthening its balance sheet, extending its cash runway and signaling strategic government support for domestic quantum technology. Uncle Sam’s Quantum Leap: Feds Fund a $300M Quantum Supercycle
• Positive Sentiment: D-Wave issued 7,095,721 shares to the U.S. government under the $100 million agreement. Although the transaction dilutes existing shareholders, the capital infusion avoids a fully conventional financing and gives Washington a direct financial interest in D-Wave’s development. D-Wave Issues 7.1M QBTS Shares to U.S. Government
• Neutral Sentiment: Director John DiLullo sold 1,100 shares for $19,800 under a pre-arranged Rule 10b5-1 plan. The sale reduced his position by 5.16%, but its preset nature makes it a relatively weak signal about management’s current outlook. D-Wave Director Stock Sale
• Negative Sentiment: Three securities-law firms announced investigations concerning potential claims on behalf of D-Wave investors. The notices do not establish wrongdoing, but they add headline, legal and reputational risk. QBTS Investigation Alert
• Negative Sentiment: Quantum stocks pulled back as expectations for additional Federal Reserve tightening increased. Higher rates tend to pressure speculative, high-beta companies such as D-Wave by reducing the value investors place on long-term growth prospects. Quantum Stocks Fall as Rate-Hike Odds Climb
• Negative Sentiment: D-Wave remains unprofitable: its latest quarterly loss exceeded expectations and revenue fell short of analyst estimates. The company’s high valuation relative to current revenue leaves QBTS vulnerable to profit-taking and skepticism about the timing of commercial quantum adoption.

D-Wave Quantum Stock Down 2.7%

QBTS stock opened at $16.66 on Tuesday. D-Wave Quantum has a fifty-two week low of $12.75 and a fifty-two week high of $46.75. The company has a market capitalization of $6.16 billion, a price-to-earnings ratio of -23.46 and a beta of 2.15. The business’s 50 day moving average price is $18.80 and its two-hundred day moving average price is $20.01. 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 earnings results on Thursday, August 6th. The company reported ($0.10) EPS for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.02). The firm had revenue of $3.08 million during the quarter, compared to analysts’ expectations of $4.03 million. D-Wave Quantum had a negative net margin of 2,001.59% and a negative return on equity of 26.67%. The company’s revenue for the quarter was down 0.6 compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.08) EPS. As a group, analysts forecast that D-Wave Quantum will post -0.46 earnings per share for the current fiscal year.

Insider Buying and Selling at D-Wave Quantum

In other D-Wave Quantum news, CFO John Markovich sold 200,000 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $25.71, for a total value of $5,142,000.00. Following the transaction, the chief financial officer owned 1,142,820 shares of the company’s stock, valued at approximately $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 Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, VP Sophie Ames sold 3,070 shares of the firm’s stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $16.95, for a total value of $52,036.50. Following the completion of the transaction, the vice president directly owned 589,009 shares in the company, valued at $9,983,702.55. The trade was a 0.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 217,688 shares of company stock valued at $5,570,847. 1.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On D-Wave Quantum

A number of institutional investors have recently bought and sold shares of the stock. World Investment Advisors lifted its stake in D-Wave Quantum by 195.7% during the 4th quarter. World Investment Advisors now owns 41,691 shares of the company’s stock worth $1,090,000 after acquiring an additional 27,592 shares in the last quarter. Allspring Global Investments Holdings LLC boosted its holdings in D-Wave Quantum by 319.3% in the first quarter. Allspring Global Investments Holdings LLC now owns 98,747 shares of the company’s stock valued at $1,353,000 after purchasing an additional 75,198 shares during the period. Clear Street Group Inc. boosted its holdings in D-Wave Quantum by 40.4% in the fourth quarter. Clear Street Group Inc. now owns 4,281,254 shares of the company’s stock valued at $111,955,000 after purchasing an additional 1,232,106 shares during the period. Cibc World Market Inc. grew its stake in D-Wave Quantum by 295.0% during the 4th quarter. Cibc World Market Inc. now owns 54,760 shares of the company’s stock worth $1,432,000 after purchasing an additional 40,897 shares in the last quarter. Finally, Intech Investment Management LLC grew its stake in D-Wave Quantum by 26.9% during the 4th quarter. Intech Investment Management LLC now owns 112,742 shares of the company’s stock worth $2,948,000 after purchasing an additional 23,892 shares in the last quarter. 42.47% of the stock is owned by institutional investors.

D-Wave Quantum Company Profile

D-Wave Quantum Inc develops quantum computing systems, software, and services for commercial, government, and research customers. The company is best known for its quantum annealing technology, which is designed to help solve complex optimization problems involving areas such as logistics, scheduling, manufacturing, artificial intelligence, and financial modeling.

D-Wave also develops gate-model quantum computing technology and provides access to its systems through cloud-based services, including the Leap quantum application environment.