D-Wave Quantum (NASDAQ:QBTS) Stock Falls 3.6% – Here’s Why

D-Wave Quantum Inc. (NASDAQ:QBTS)’s share price fell 3.6% on Wednesday. The company traded as low as $14.98 and last traded at $15.22. 14,289,798 shares traded hands during mid-day trading, a decline of 46% from the average session volume of 26,672,982 shares. The stock had previously closed at $15.79.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the company. Roth Capital reiterated a “buy” rating and set a $30.00 price objective on shares of D-Wave Quantum in a research note on Thursday, August 6th. BMO Capital Markets assumed coverage on D-Wave Quantum in a research report on Thursday, August 20th. They issued an “outperform” rating and a $35.00 target price on the stock. 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 set a $43.00 price target on shares of D-Wave Quantum in a research report on Friday, August 7th. Finally, Benchmark initiated coverage on D-Wave Quantum in a research note on Monday, July 27th. They issued a “buy” rating and a $30.00 price objective for the company. Thirteen analysts have rated the stock with a Buy rating, two have given 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 a consensus rating of “Moderate Buy” and an average price target of $36.27.

D-Wave Quantum Stock Down 0.3%

The stock has a market capitalization of $5.38 billion, a price-to-earnings ratio of -20.49 and a beta of 2.18. The company has a quick ratio of 20.42, a current ratio of 20.55 and a debt-to-equity ratio of 0.03. The business’s 50-day moving average is $17.94 and its two-hundred day moving average is $19.78.

D-Wave Quantum (NASDAQ:QBTS) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.10) EPS for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.02). D-Wave Quantum had a negative net margin of 2,001.59% and a negative return on equity of 26.67%. The business had revenue of $3.08 million during the quarter, compared to analyst estimates of $4.03 million. During the same quarter in the previous year, the company posted ($0.08) EPS. The firm’s revenue was down 0.6 on a year-over-year basis. Equities analysts anticipate that D-Wave Quantum Inc. will post -0.46 EPS for the current year.

Insider Activity

In related news, VP Sophie Ames sold 3,070 shares of the stock in a transaction that occurred on 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 sale, the vice president owned 589,009 shares of the company’s stock, valued at approximately $9,983,702.55. This trade represents a 0.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On D-Wave Quantum

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in shares of D-Wave Quantum in the 2nd quarter worth $795,206,000. Bank of America Corp DE purchased a new stake in shares of D-Wave Quantum in the second quarter valued at about $104,183,000. Clear Street Group Inc. grew its holdings in shares of 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. Van ECK Associates Corp increased its position in D-Wave Quantum by 52.6% during the second quarter. Van ECK Associates Corp now owns 2,339,788 shares of the company’s stock worth $56,132,000 after purchasing an additional 806,835 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in D-Wave Quantum during the second quarter worth about $54,951,000. Institutional investors and hedge funds own 42.47% of the company’s stock.

About D-Wave Quantum

D-Wave Quantum Inc is a quantum-computing company that develops and delivers quantum systems, software and cloud-based services for commercial, government and research customers. The company focuses on quantum annealing, an approach designed to address complex optimization problems, and is also developing gate-model quantum-computing capabilities.

Its offerings include D-Wave quantum computers, the Leap quantum cloud service, and the Ocean software development kit. Through these products, customers can access quantum hardware, build and test applications, and combine quantum processing with classical computing through hybrid solvers.