D-Wave Quantum (NASDAQ:QBTS) Stock Price Down 2.8% – What’s Next?

D-Wave Quantum Inc. (NASDAQ:QBTS) shares dropped 2.8% during mid-day trading on Friday. The company traded as low as $9.27 and last traded at $9.56. 11,093,338 shares traded hands during trading, a decline of 56% from the average session volume of 25,286,955 shares. The stock had previously closed at $9.84.

Key Headlines Impacting D-Wave Quantum

Here are a few of the latest headlines about QBTS:

• Positive Sentiment: Wedbush maintained its Outperform rating, citing bookings that reportedly surged 611%, a stronger sales pipeline and an expected university-system delivery in the fourth quarter. These factors could support future revenue growth. Article: D-Wave gets Wedbush vote of confidence as bookings surge 611%
• Neutral Sentiment: D-Wave’s reported $503.4 million liquidity and the possibility of up to $100 million in government funding provide financial runway, but the funding is potential, not assured. Rising operating costs and widening adjusted EBITDA losses remain concerns. Article: Can D-Wave’s Liquidity Position Mitigate Rising Cash Burn?
• Negative Sentiment: Analysts have cut price targets, with one report citing reductions of as much as 55%. StoneX lowered its target from $30 to $20 but retained a Buy rating. Recent earnings also missed the consensus EPS estimate, underscoring concerns about losses and valuation. Article: Wall Street Slashes D-Wave Stock Targets by Up to 55%

Wall Street Analyst Weigh In

A number of brokerages recently commented on QBTS. Benchmark initiated coverage on D-Wave Quantum in a research note on Monday, July 27th. They issued a “buy” rating and a $30.00 target price for the company. BMO Capital Markets assumed coverage on shares of D-Wave Quantum in a report on Thursday, August 20th. They issued an “outperform” rating and a $35.00 price target on the stock. Needham & Company LLC dropped their price objective on shares of D-Wave Quantum from $40.00 to $20.00 and set a “buy” rating for the company in a research note on Wednesday. StoneX dropped their price objective on shares of D-Wave Quantum from $30.00 to $20.00 and set a “buy” rating for the company in a research note on Wednesday. Finally, Zacks Research downgraded shares of D-Wave Quantum from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 18th. Fifteen analysts have rated the stock with a Buy rating, two have issued 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 price target of $30.00.

D-Wave Quantum Trading Down 2.8%

The company has a 50 day moving average of $14.09 and a 200 day moving average of $18.61. The firm has a market cap of $3.54 billion, a price-to-earnings ratio of -22.23 and a beta of 2.35. The company has a current ratio of 20.55, a quick ratio of 20.42 and a debt-to-equity ratio of 0.03.

D-Wave Quantum (NASDAQ:QBTS) last released its quarterly earnings data on Tuesday, November 10th. The company reported ($0.13) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.03). The company had revenue of $4.51 million for the quarter, compared to analyst estimates of $4.37 million. D-Wave Quantum had a negative return on equity of 15.39% and a negative net margin of 1,188.79%. During the same quarter in the prior year, the company earned ($0.41) earnings per share. As a group, research analysts anticipate that D-Wave Quantum Inc. will post -0.50 EPS for the current year.

Hedge Funds Weigh In On D-Wave Quantum

Several institutional investors have recently added to or reduced their stakes in the company. Fiduciary Financial Advisors bought a new stake in D-Wave Quantum during the second quarter worth about $25,000. Migdal Insurance & Financial Holdings Ltd. acquired a new stake in shares of D-Wave Quantum during the third quarter worth approximately $25,000. Silver Grove Financial Group Inc. raised its stake in shares of D-Wave Quantum by 304.2% in the third quarter. Silver Grove Financial Group Inc. now owns 1,524 shares of the company’s stock valued at $25,000 after acquiring an additional 1,147 shares during the last quarter. Ancora Advisors LLC bought a new position in shares of D-Wave Quantum in the second quarter valued at approximately $39,000. Finally, Kelleher Financial Advisors bought a new position in shares of D-Wave Quantum in the second quarter valued at approximately $39,000. 42.47% of the stock is owned by institutional investors.

D-Wave Quantum Company Profile

D-Wave Quantum develops quantum computing systems, software and services for commercial, government and research users. The company focuses on quantum annealing, an approach designed to help solve complex optimization and sampling problems, and offers hybrid tools that combine quantum processing with classical computing. Its offerings include Advantage quantum computers, the Leap quantum cloud service, and software for building and running applications. D-Wave’s technology is used to explore challenges such as scheduling, resource allocation and supply-chain optimization.