D-Wave Quantum (NYSE:QBTS) Shares Up 2.5% – Here’s What Happened

Shares of D-Wave Quantum Inc. (NYSE:QBTS) shot up 2.5% during mid-day trading on Thursday . The company traded as high as $24.41 and last traded at $23.8420. 24,889,077 shares changed hands during mid-day trading, a decline of 23% from the average session volume of 32,342,025 shares. The stock had previously closed at $23.25.

Key D-Wave Quantum News

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

• Positive Sentiment: D-Wave is pushing deeper into new commercial use cases, including a live quantum-classical testnet with Postquant Labs and reported early gains in drug discovery work with Shionogi, which supports the bull case for longer-term revenue growth. Are AI and Blockchain Shaping D-Wave’s Next Growth Phase?
• Positive Sentiment: Analysts remain constructive, with Rosenblatt reaffirming a Buy rating and a $43 price target, suggesting Wall Street still sees meaningful upside from current levels. D-Wave Quantum (QBTS) Stock Valuation Gap Weighs Long-Term Momentum Against Recent Weakness
• Positive Sentiment: Broader coverage around governments accelerating quantum spending and enterprise adoption is keeping attention on the sector and could help sentiment toward quantum leaders like QBTS. The Quantum Race Is Heating Up, and Governments Worldwide Are Buying In
• Neutral Sentiment: CEO Alan Baratz discussed D-Wave’s quantum roadmap and enterprise adoption on NYSE Live, reinforcing the company’s long-term narrative but without a clear near-term financial catalyst. D-Wave CEO Dr. Alan Baratz Details the Quantum Roadmap and Enterprise Adoption
• Negative Sentiment: Insider selling is pressuring sentiment, especially after a large sale by CEO Alan Baratz and additional sales disclosed by CFO John Markovich, which may make investors question near-term confidence. Alan Baratz Sells 687,627 Shares of D-Wave Quantum (NYSE:QBTS) Stock
• Negative Sentiment: Commentary also points to a stretched valuation after the stock’s big run, with some investors wary that recent gains already price in a lot of future quantum optimism. D-Wave Quantum (QBTS) Stock Valuation Gap Weighs Long-Term Momentum Against Recent Weakness

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on QBTS. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $40.00 target price on shares of D-Wave Quantum in a report on Wednesday, May 13th. Needham & Company LLC reaffirmed a “buy” rating and issued a $40.00 target price on shares of D-Wave Quantum in a report on Tuesday, June 2nd. Stifel Nicolaus set a $35.00 target price on shares of D-Wave Quantum in a report on Tuesday, June 2nd. Canaccord Genuity Group dropped their target price on shares of D-Wave Quantum from $43.00 to $41.00 and set a “buy” rating on the stock in a report on Wednesday, May 13th. Finally, Mizuho dropped their target price on shares of D-Wave Quantum from $31.00 to $29.00 and set an “outperform” rating on the stock in a report on Wednesday, May 13th. Fourteen 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. According to MarketBeat, D-Wave Quantum currently has an average rating of “Moderate Buy” and an average target price of $36.40.

D-Wave Quantum Stock Performance

The firm has a market cap of $8.66 billion, a price-to-earnings ratio of -20.71 and a beta of 2.05. The stock’s 50 day moving average is $21.71 and its 200 day moving average is $22.27. The company has a current ratio of 21.41, a quick ratio of 21.31 and a debt-to-equity ratio of 0.03.

D-Wave Quantum (NYSE:QBTS) last announced its quarterly earnings results on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, beating analysts’ consensus estimates 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 business had revenue of $2.86 million for the quarter, compared to analyst estimates of $4.19 million. During the same quarter in the prior year, the business earned ($0.02) EPS. D-Wave Quantum’s quarterly revenue was down 80.9% on a year-over-year basis. Analysts anticipate that D-Wave Quantum Inc. will post -0.43 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director John D. Dilullo sold 7,850 shares of the company’s stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $24.43, for a total value of $191,775.50. Following the transaction, the director owned 21,310 shares in the company, valued at approximately $520,603.30. This represents a 26.92% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Alan E. Baratz sold 687,627 shares of the company’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $26.13, for a total transaction of $17,967,693.51. Following the completion of the transaction, the chief executive officer owned 3,299,771 shares in the company, valued at approximately $86,223,016.23. This trade represents a 17.25% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,114,281 shares of company stock worth $29,374,353 in the last 90 days. Corporate insiders own 1.30% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd grew its position in shares of D-Wave Quantum by 370.9% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 96,248 shares of the company’s stock worth $2,378,000 after purchasing an additional 75,807 shares in the last quarter. SG Americas Securities LLC grew its position in shares of D-Wave Quantum by 254.7% during the 4th quarter. SG Americas Securities LLC now owns 2,272,020 shares of the company’s stock worth $59,413,000 after purchasing an additional 1,631,415 shares in the last quarter. WBI Investments LLC acquired a new position in shares of D-Wave Quantum during the 3rd quarter worth approximately $844,000. Massachusetts Financial Services Co. MA acquired a new position in shares of D-Wave Quantum during the 4th quarter worth approximately $1,114,000. Finally, Florida Financial Advisors LLC grew its position in shares of D-Wave Quantum by 87.9% during the 3rd quarter. Florida Financial Advisors LLC now owns 61,989 shares of the company’s stock worth $1,532,000 after purchasing an additional 29,007 shares in the last quarter. Institutional investors and hedge funds own 42.47% of the company’s stock.

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.