D-Wave Quantum (NYSE:QBTS) Trading Down 5.1% – Should You Sell?

Shares of D-Wave Quantum Inc. (NYSE:QBTS) were down 5.1% during trading on Wednesday . The company traded as low as $13.65 and last traded at $13.6910. Approximately 21,604,439 shares changed hands during mid-day trading, a decline of 26% from the average daily volume of 29,043,879 shares. The stock had previously closed at $14.43.

Analyst Ratings Changes

QBTS has been the subject of a number of research reports. Rosenblatt Securities reaffirmed a “buy” rating and set a $43.00 price target on shares of D-Wave Quantum in a research report on Wednesday, January 28th. Zacks Research cut D-Wave Quantum from a “hold” rating to a “strong sell” rating in a research note on Friday, March 6th. TD Cowen started coverage on D-Wave Quantum in a research report on Thursday, February 12th. They issued a “buy” rating for the company. Wedbush began coverage on D-Wave Quantum in a research note on Wednesday, December 17th. They issued an “outperform” rating and a $35.00 target price for the company. Finally, Needham & Company LLC dropped their target price on D-Wave Quantum from $48.00 to $40.00 and set a “buy” rating on the stock in a report on Thursday, February 26th. Fourteen analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $36.50.

D-Wave Quantum Stock Up 4.6%

The company has a market capitalization of $5.30 billion, a price-to-earnings ratio of -13.02 and a beta of 1.78. The company has a quick ratio of 42.25, a current ratio of 42.38 and a debt-to-equity ratio of 0.04. The firm has a 50 day moving average price of $18.70 and a two-hundred day moving average price of $25.00.

D-Wave Quantum (NYSE:QBTS) last issued its quarterly earnings results on Thursday, February 26th. The company reported ($0.09) EPS for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.04). The business had revenue of $2.75 million during the quarter, compared to analysts’ expectations of $3.74 million. D-Wave Quantum had a negative net margin of 1,444.10% and a negative return on equity of 58.58%. D-Wave Quantum’s quarterly revenue was up 21.7% compared to the same quarter last year. As a group, sell-side analysts expect that D-Wave Quantum Inc. will post -0.41 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Rohit Ghai sold 10,000 shares of the stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $17.62, for a total transaction of $176,200.00. Following the completion of the transaction, the director directly owned 27,778 shares in the company, valued at approximately $489,448.36. This represents a 26.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Alan E. Baratz sold 35,013 shares of the firm’s stock in a transaction that occurred on Wednesday, January 14th. The stock was 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 $72,904,089. The trade was a 1.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 72,898 shares of company stock valued at $1,749,054. Company insiders own 3.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Root Financial Partners LLC lifted its position in shares of D-Wave Quantum by 388.0% during the fourth quarter. Root Financial Partners LLC now owns 976 shares of the company’s stock worth $26,000 after purchasing an additional 776 shares during the last quarter. Kemnay Advisory Services Inc. bought a new stake in D-Wave Quantum in the fourth quarter valued at about $28,000. EverSource Wealth Advisors LLC raised its stake in D-Wave Quantum by 267.7% during the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company’s stock valued at $30,000 after buying an additional 838 shares in the last quarter. Ancora Advisors LLC acquired a new stake in D-Wave Quantum during the third quarter valued at approximately $30,000. Finally, Financial Consulate Inc. bought a new position in D-Wave Quantum during the 3rd quarter worth approximately $31,000. 42.47% of the stock is 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.