D-Wave Quantum (NYSE:QBTS) Shares Down 7.1% – Here’s Why

D-Wave Quantum Inc. (NYSE:QBTS)’s stock price dropped 7.1% during mid-day trading on Monday . The company traded as low as $18.52 and last traded at $18.6610. 16,932,943 shares traded hands during trading, a decline of 46% from the average session volume of 31,304,457 shares. The stock had previously closed at $20.09.

Analyst Upgrades and Downgrades

QBTS has been the topic of a number of recent research reports. Northland Securities assumed coverage on D-Wave Quantum in a research note on Monday, April 20th. They set a “market perform” rating and a $22.00 target price on the stock. Rosenblatt Securities restated a “buy” rating and issued a $43.00 price target on shares of D-Wave Quantum in a research note on Thursday, June 11th. Stifel Nicolaus set a $35.00 price objective on D-Wave Quantum in a report on Tuesday, June 2nd. Canaccord Genuity Group lowered their price objective on D-Wave Quantum from $43.00 to $41.00 and set a “buy” rating on the stock in a research report on Wednesday, May 13th. Finally, Roth Capital lifted their target price on D-Wave Quantum from $30.00 to $40.00 and gave the stock a “buy” rating in a report on Tuesday, June 2nd. Fourteen investment 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. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $36.80.

D-Wave Quantum Price Performance

The company has a quick ratio of 21.31, a current ratio of 21.41 and a debt-to-equity ratio of 0.03. The company’s fifty day moving average price is $23.91 and its 200 day moving average price is $21.93. The company has a market capitalization of $6.90 billion, a P/E ratio of -16.51 and a beta of 2.11.

D-Wave Quantum (NYSE:QBTS) last issued 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. The business had revenue of $2.86 million during the quarter, compared to analysts’ expectations of $4.19 million. D-Wave Quantum had a negative return on equity of 44.06% and a negative net margin of 2,957.23%.The firm’s revenue for the quarter was down 80.9% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.02) earnings per share. As a group, sell-side analysts forecast that D-Wave Quantum Inc. will post -0.43 EPS for the current year.

Insiders Place Their Bets

In other D-Wave Quantum news, VP Sophie C. Ames sold 23,025 shares of the firm’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $18.98, for a total value of $437,014.50. Following the transaction, the vice president directly owned 596,803 shares of the company’s stock, valued at $11,327,320.94. This trade represents a 3.71% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John D. Dilullo sold 7,850 shares of the business’s stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $24.43, for a total transaction of $191,775.50. Following the completion of the transaction, the director owned 21,310 shares of the company’s stock, valued at $520,603.30. The trade was a 26.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,363,842 shares of company stock valued at $35,802,656 over the last 90 days. 1.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. CoreCap Advisors LLC raised its position in D-Wave Quantum by 9.2% during the second quarter. CoreCap Advisors LLC now owns 6,115 shares of the company’s stock valued at $147,000 after purchasing an additional 515 shares in the last quarter. Sigma Planning Corp boosted its holdings in shares of D-Wave Quantum by 3.6% in the 4th quarter. Sigma Planning Corp now owns 16,329 shares of the company’s stock valued at $431,000 after purchasing an additional 560 shares in the last quarter. AlphaStar Capital Management LLC boosted its holdings in shares of D-Wave Quantum by 2.2% in the 4th 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 increased its stake in shares of D-Wave Quantum by 6.7% in the 4th 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 during the last quarter. Finally, Thoroughbred Financial Services LLC raised its holdings in shares of D-Wave Quantum by 0.5% during the 4th quarter. Thoroughbred Financial Services LLC now owns 131,852 shares of the company’s stock worth $3,447,000 after buying an additional 602 shares in the last quarter. 42.47% of the stock is 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.