D-Wave Quantum (NYSE:QBTS) Shares Down 4.5% – Time to Sell?

D-Wave Quantum Inc. (NYSE:QBTS)’s share price was down 4.5% on Tuesday . The stock traded as low as $17.74 and last traded at $18.1980. Approximately 21,438,989 shares traded hands during mid-day trading, a decline of 27% from the average daily volume of 29,494,238 shares. The stock had previously closed at $19.06.

Key Stories Impacting D-Wave Quantum

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

• Positive Sentiment: D-Wave announced a Letter of Intent for $100 million in proposed CHIPS Act funding, a material boost that could strengthen its balance sheet and support U.S. quantum infrastructure development. Article Title
• Positive Sentiment: Reports that the Trump administration is preparing a broader $2 billion quantum funding push have lifted sentiment across the entire quantum-computing sector, including QBTS. Article Title
• Positive Sentiment: Heavy options activity and a surge in trading volume suggest speculative momentum is building around QBTS as investors position for more upside from the government-funding theme. Article Title
• Neutral Sentiment: Analyst coverage and commentary continue to highlight D-Wave as a high-upside quantum name, but these notes mainly reinforce existing bullish sentiment rather than adding a new catalyst. Article Title
• Negative Sentiment: An insider sale by VP Sophie C. Ames was disclosed, which can weigh on sentiment even though it was made under a pre-arranged trading plan. Article Title

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on QBTS. Wall Street Zen lowered D-Wave Quantum from a “hold” rating to a “sell” rating in a research report on Saturday, February 7th. Weiss Ratings lowered D-Wave Quantum from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Wednesday, April 29th. Benchmark restated a “buy” rating and set a $35.00 price objective on shares of D-Wave Quantum in a research note on Friday, January 23rd. Northland Securities initiated coverage on D-Wave Quantum in a research note on Monday, April 20th. They set a “market perform” rating and a $22.00 price objective on the stock. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $43.00 price objective on shares of D-Wave Quantum in a report on Wednesday, May 13th. Fourteen research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $34.67.

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 market capitalization of $9.53 billion, a price-to-earnings ratio of -22.81 and a beta of 1.95. The company has a 50-day simple moving average of $18.20 and a two-hundred day simple moving average of $22.16.

D-Wave Quantum (NYSE:QBTS) last announced its quarterly earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.08) by $0.03. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The company had revenue of $2.86 million during the quarter, compared to the consensus estimate of $4.19 million. During the same quarter in the previous year, the company posted ($0.02) earnings per share. The company’s revenue for the quarter was down 80.9% compared to the same quarter last year. On average, equities research analysts predict that D-Wave Quantum Inc. will post -0.44 earnings per share for the current year.

Insider Activity

In other news, CFO John M. Markovich sold 10,706 shares of D-Wave Quantum stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $17.63, for a total transaction of $188,746.78. Following the sale, the chief financial officer owned 1,451,427 shares of the company’s stock, valued at approximately $25,588,658.01. The trade was a 0.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director John D. Dilullo sold 8,000 shares of D-Wave Quantum stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $18.01, for a total value of $144,080.00. Following the sale, the director directly owned 19,803 shares in the company, valued at approximately $356,652.03. This trade represents a 28.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 54,801 shares of company stock valued at $1,011,586. Company insiders own 3.20% of the company’s stock.

Institutional Trading of D-Wave Quantum

Large investors have recently added to or reduced their stakes in the business. Huntington National Bank boosted its position in D-Wave Quantum by 17.9% during the 3rd quarter. Huntington National Bank now owns 3,300 shares of the company’s stock worth $82,000 after acquiring an additional 500 shares during the period. Sigma Planning Corp increased its holdings in shares of D-Wave Quantum by 3.6% during the fourth quarter. Sigma Planning Corp now owns 16,329 shares of the company’s stock valued at $431,000 after purchasing an additional 560 shares during the period. AlphaStar Capital Management LLC raised its stake in shares of D-Wave Quantum by 2.2% during the fourth quarter. AlphaStar Capital Management LLC now owns 27,063 shares of the company’s stock valued at $708,000 after purchasing an additional 592 shares in the last quarter. Noble Wealth Management PBC raised its stake in shares of D-Wave Quantum by 6.7% during the fourth quarter. Noble Wealth Management PBC now owns 9,600 shares of the company’s stock valued at $251,000 after purchasing an additional 600 shares in the last quarter. Finally, Thoroughbred Financial Services LLC lifted its holdings in D-Wave Quantum by 0.5% in the fourth quarter. Thoroughbred Financial Services LLC now owns 131,852 shares of the company’s stock worth $3,447,000 after purchasing an additional 602 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.