D-Wave Quantum (NYSE:QBTS) Trading Down 4.6% After Insider Selling

D-Wave Quantum Inc. (NYSE:QBTS) shares were down 4.6% on Thursday following insider selling activity. The company traded as low as $28.71 and last traded at $28.75. Approximately 43,421,722 shares traded hands during mid-day trading, an increase of 8% from the average daily volume of 40,024,453 shares. The stock had previously closed at $30.15.

Specifically, CEO Alan E. Baratz sold 35,013 shares of D-Wave Quantum stock in a transaction that occurred on Wednesday, January 14th. The stock was sold at an average price of $28.06, for a total value of $982,464.78. Following the completion of the transaction, the chief executive officer owned 2,598,150 shares in the company, valued at approximately $72,904,089. The trade was a 1.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO John M. Markovich sold 9,179 shares of the stock in a transaction on Wednesday, January 14th. The shares were sold at an average price of $28.06, for a total transaction of $257,562.74. Following the completion of the sale, the chief financial officer directly owned 1,462,133 shares in the company, valued at approximately $41,027,451.98. This represents a 0.62% decrease in their position. The SEC filing for this sale provides additional information.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on QBTS shares. Cantor Fitzgerald upped their price target on shares of D-Wave Quantum from $20.00 to $40.00 and gave the company an “overweight” rating in a report on Friday, November 7th. Wall Street Zen upgraded D-Wave Quantum from a “sell” rating to a “hold” rating in a report on Saturday, January 10th. Rosenblatt Securities restated a “buy” rating and set a $40.00 price objective on shares of D-Wave Quantum in a report on Wednesday, January 7th. Roth Capital set a $40.00 target price on D-Wave Quantum in a research note on Thursday, November 6th. Finally, B. Riley boosted their price objective on shares of D-Wave Quantum from $22.00 to $33.00 and gave the company a “buy” rating in a research report on Monday, September 22nd. Fourteen equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, D-Wave Quantum currently has an average rating of “Moderate Buy” and a consensus price target of $33.67.

D-Wave Quantum News Summary

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

• Positive Sentiment: Company demonstrated what it calls the first scalable, on?chip cryogenic control of gate?model qubits — a technical milestone that could accelerate D?Wave’s roadmap for gate?model systems and broaden addressable markets if it leads to faster product development or customer wins. D-Wave Quantum (QBTS) Demonstrates First Scalable, On-Chip Cryogenic Control of Gate-Model Qubits
• Positive Sentiment: Rosenblatt (via coverage picked up by Barron’s) initiated coverage of Rigetti and other quantum names at Buy — a favorable analyst initiation for the sector that can lift sentiment and drive inflows toward QBTS alongside peers. Rigetti and Quantum Computing Stocks Are a Buy, Says Analyst. Look Past the Criticism of Both.
• Positive Sentiment: Company reported expanding global customer traction with multiple Q3 customer deals across airlines, banking and pharma and disclosed bookings of $2.4M — evidence of growing commercial adoption that supports revenue upside versus earlier stages. D-Wave Quantum’s Expanded Global Customer Base Is Gaining Attention
• Neutral Sentiment: Media/analysis pieces (Fool, MSN) are circulating bullish scenario analyses and partnership commentary; these can influence retail sentiment but are largely speculative and not immediate company announcements. D-Wave just got a ‘formidable’ quantum computing ‘ally.’ Should you buy QBTS stock here?
• Neutral Sentiment: Long-form bullish takes have appeared arguing large upside if government adoption and Advantage2 scale; useful for narrative but depend on execution and macro/valuation conditions. Could D-Wave Stock Make You a Millionaire in Next 5 Years
• Negative Sentiment: Insider selling by top executives: CEO Alan Baratz sold 35,013 shares (~$28.06 avg), and CFO John Markovich sold 9,179 shares (~$28.06 avg) on Jan. 14; their filings show modest reductions in holdings. Such insider sales often trigger short?term selling pressure or skepticism about timing, even if they can be routine or for diversification. Alan E. Baratz Form 4 John M. Markovich Form 4

D-Wave Quantum Price Performance

The company has a market cap of $10.07 billion, a PE ratio of -21.30 and a beta of 1.57. The company has a debt-to-equity ratio of 0.05, a current ratio of 54.68 and a quick ratio of 54.49. The stock’s 50-day moving average is $26.22 and its 200 day moving average is $23.89.

D-Wave Quantum (NYSE:QBTS) last issued its quarterly earnings data on Thursday, November 6th. The company reported ($0.05) EPS for the quarter, beating the consensus estimate of ($0.07) by $0.02. The firm had revenue of $3.74 million during the quarter, compared to analyst estimates of $3.03 million. D-Wave Quantum had a negative return on equity of 97.58% and a negative net margin of 1,651.81%.The company’s quarterly revenue was up 105.6% on a year-over-year basis. On average, equities analysts anticipate that D-Wave Quantum Inc. will post -0.41 earnings per share for the current fiscal year.

Institutional Trading of D-Wave Quantum

Institutional investors have recently bought and sold shares of the stock. Baird Financial Group Inc. grew its holdings in shares of D-Wave Quantum by 12.0% during the first quarter. Baird Financial Group Inc. now owns 12,135 shares of the company’s stock valued at $92,000 after buying an additional 1,300 shares during the last quarter. Royal Bank of Canada grew its stake in D-Wave Quantum by 59.8% during the 1st quarter. Royal Bank of Canada now owns 162,088 shares of the company’s stock valued at $1,231,000 after purchasing an additional 60,668 shares during the last quarter. AQR Capital Management LLC raised its stake in shares of D-Wave Quantum by 201.0% in the first quarter. AQR Capital Management LLC now owns 200,765 shares of the company’s stock worth $1,526,000 after purchasing an additional 134,066 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of D-Wave Quantum by 93.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,572 shares of the company’s stock worth $825,000 after purchasing an additional 52,437 shares during the period. Finally, NewEdge Advisors LLC lifted its holdings in shares of D-Wave Quantum by 125.7% during the first quarter. NewEdge Advisors LLC now owns 43,786 shares of the company’s stock worth $333,000 after purchasing an additional 24,382 shares during the period. 42.47% of the stock is currently owned by institutional investors and hedge funds.

D-Wave Quantum Company Profile

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.