D-Wave Quantum (NYSE:QBTS) Trading Down 14.5% – Here’s Why

Shares of D-Wave Quantum Inc. (NYSE:QBTS) traded down 14.5% during trading on Thursday . The stock traded as low as $16.92 and last traded at $17.2020. 35,770,278 shares traded hands during trading, a decline of 6% from the average session volume of 37,924,227 shares. The stock had previously closed at $20.11.

Wall Street Analysts Forecast Growth

QBTS has been the subject of a number of research analyst reports. Jefferies Financial Group started coverage on D-Wave Quantum in a report on Tuesday, December 16th. They set a “buy” rating and a $45.00 price objective for the company. Williams Trading set a $35.00 price objective on D-Wave Quantum in a report on Monday, November 10th. Zacks Research upgraded D-Wave Quantum from a “strong sell” rating to a “hold” rating in a report on Thursday, November 6th. Cantor Fitzgerald raised 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. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $43.00 price objective on shares of D-Wave Quantum in a research note on Wednesday, January 28th. Thirteen research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $38.21.

D-Wave Quantum Stock Up 20.3%

The stock has a market capitalization of $7.66 billion, a price-to-earnings ratio of -15.33 and a beta of 1.56. The firm’s fifty day moving average is $26.18 and its 200-day moving average is $24.74. The company has a debt-to-equity ratio of 0.05, a current ratio of 54.68 and a quick ratio of 54.49.

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

Insider Activity

In other D-Wave Quantum news, CEO Alan E. Baratz sold 35,013 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 $982,464.78. Following the sale, the chief executive officer directly owned 2,598,150 shares of the company’s stock, valued at approximately $72,904,089. This represents a 1.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO John M. Markovich sold 9,179 shares of the stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $28.06, for a total transaction of $257,562.74. Following the sale, the chief financial officer owned 1,462,133 shares in the company, valued at approximately $41,027,451.98. This trade represents a 0.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 2,346,916 shares of company stock valued at $65,591,314 over the last quarter. 3.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Osaic Holdings Inc. raised its holdings in D-Wave Quantum by 125.7% during the second quarter. Osaic Holdings Inc. now owns 247,004 shares of the company’s stock worth $3,616,000 after purchasing an additional 137,549 shares in the last quarter. UNICOM Systems Inc. raised its stake in shares of D-Wave Quantum by 12.1% in the 3rd quarter. UNICOM Systems Inc. now owns 3,121,346 shares of the company’s stock worth $77,128,000 after buying an additional 337,838 shares in the last quarter. IFP Advisors Inc raised its stake in shares of D-Wave Quantum by 123.8% in the 2nd quarter. IFP Advisors Inc now owns 14,814 shares of the company’s stock worth $217,000 after buying an additional 8,194 shares in the last quarter. Csenge Advisory Group boosted its stake in D-Wave Quantum by 99.1% during the third quarter. Csenge Advisory Group now owns 35,886 shares of the company’s stock valued at $887,000 after buying an additional 17,860 shares in the last quarter. Finally, World Investment Advisors bought a new stake in D-Wave Quantum in the second quarter worth about $190,000. Institutional investors 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.