D-Wave Quantum (NASDAQ:QBTS) Stock Price Down 2.7% – Time to Sell?

Shares of D-Wave Quantum Inc. (NASDAQ:QBTS) were down 2.7% during mid-day trading on Thursday . The stock traded as low as $16.60 and last traded at $16.66. 12,771,738 shares changed hands during mid-day trading, a decline of 54% from the average session volume of 27,899,314 shares. The stock had previously closed at $17.12.

Trending Headlines about D-Wave Quantum

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

• Positive Sentiment: The U.S. Commerce Department is reportedly preparing up to $300 million in minority equity investments across D-Wave, Rigetti and Quantinuum. The potential funding could strengthen D-Wave’s balance sheet, extend its cash runway and reinforce government support for domestic quantum technology. Uncle Sam’s Quantum Leap: Feds Fund a $300M Quantum Supercycle
• Positive Sentiment: D-Wave finalized an agreement for up to $100 million under the CHIPS and Science Act, providing non-dilutive strategic capital in addition to federal backing for its quantum-computing development efforts. D-Wave Quantum Finalizes Up To $100 Million U.S. Funding Agreement
• Neutral Sentiment: Director John DiLullo sold 1,100 shares for approximately $19,800 under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by 5.16%, but its preset nature limits its usefulness as a signal of management’s current outlook. D-Wave Quantum Director Stock Sale
• Negative Sentiment: D-Wave issued 7,095,721 shares to the U.S. government as part of the $100 million CHIPS agreement. While the transaction supplies capital, the additional shares create dilution for existing shareholders. D-Wave Issues Shares to U.S. Government
• Negative Sentiment: Several law firms, including Kessler Topaz Meltzer & Check, Pomerantz and KTMC, announced investigations into potential securities-law violations involving D-Wave. The announcements do not establish wrongdoing, but they add headline and potential litigation risk. D-Wave Investor Investigation Alert
• Negative Sentiment: Quantum stocks pulled back as expectations for another Federal Reserve rate move increased. Higher rates tend to pressure high-beta, unprofitable growth companies such as D-Wave by reducing the value investors assign to distant future earnings. Quantum Stocks Fall as Rate-Hike Odds Climb
• Negative Sentiment: D-Wave’s latest quarterly results showed a $0.10 per-share loss and $3.08 million in revenue, missing estimates of a $0.08 loss and $4.03 million in revenue. Continued losses and a very high valuation remain important risks for investors.

Analyst Ratings Changes

Several equities analysts have weighed in on QBTS shares. Stifel Nicolaus set a $35.00 price objective on D-Wave Quantum in a report on Tuesday, June 2nd. Rosenblatt Securities reaffirmed a “buy” rating and issued a $43.00 price target on shares of D-Wave Quantum in a research note on Friday, August 7th. Needham & Company LLC reiterated a “buy” rating and set a $40.00 price objective on shares of D-Wave Quantum in a research note on Tuesday, June 2nd. Weiss Ratings upgraded shares of D-Wave Quantum from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday, August 28th. Finally, B. Riley Financial boosted their price objective on shares of D-Wave Quantum from $36.00 to $40.00 and gave the company a “buy” rating in a research report on Tuesday, June 2nd. Thirteen equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, D-Wave Quantum presently has a consensus rating of “Moderate Buy” and a consensus price target of $36.27.

D-Wave Quantum Stock Performance

The company has a debt-to-equity ratio of 0.03, a quick ratio of 20.42 and a current ratio of 20.55. The firm has a market cap of $6.16 billion, a P/E ratio of -23.46 and a beta of 2.15. The company’s 50 day moving average is $18.92 and its 200 day moving average is $20.02.

D-Wave Quantum (NASDAQ:QBTS) last announced its quarterly 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 the consensus estimate 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 firm’s revenue was down 0.6 on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.08) earnings per share. As a group, equities analysts predict that D-Wave Quantum Inc. will post -0.46 earnings per share for the current fiscal year.

Insider Activity

In other D-Wave Quantum news, CFO John M. Markovich sold 200,000 shares of the company’s 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 sale, the chief financial officer owned 1,142,820 shares in the company, valued at approximately $29,381,902.20. The trade was a 14.89% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, VP Sophie C. Ames sold 3,070 shares of the stock in a transaction dated Monday, July 20th. The shares were 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 directly owned 589,009 shares of the company’s stock, valued at approximately $9,983,702.55. The trade was a 0.52% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 263,731 shares of company stock valued at $6,676,339 over the last quarter. 1.30% of the stock is owned by company insiders.

Institutional Trading of D-Wave Quantum

Several institutional investors have recently added to or reduced their stakes in the stock. Root Financial Partners LLC boosted its stake in shares of D-Wave Quantum by 388.0% in the 4th quarter. Root Financial Partners LLC now owns 976 shares of the company’s stock valued at $26,000 after purchasing an additional 776 shares during the last quarter. Fiduciary Financial Advisors bought a new stake in D-Wave Quantum during the second quarter valued at $25,000. Kemnay Advisory Services Inc. acquired a new stake in D-Wave Quantum during the 4th quarter worth about $28,000. EverSource Wealth Advisors LLC grew its holdings in 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 acquiring an additional 838 shares during the period. Finally, Mcguire Capital Advisors Inc. bought a new position in shares of D-Wave Quantum in the 4th quarter worth about $31,000. 42.47% of the stock is currently owned by institutional investors.

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.