D-Wave Quantum (NYSE:QBTS) Stock Price Down 6.9% – Here’s Why

D-Wave Quantum Inc. (NYSE:QBTS)’s stock price fell 6.9% on Tuesday . The stock traded as low as $20.88 and last traded at $22.3830. 46,681,499 shares were traded during mid-day trading, an increase of 57% from the average session volume of 29,756,914 shares. The stock had previously closed at $24.03.

Key Headlines Impacting D-Wave Quantum

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

• Positive Sentiment: D-Wave beat earnings expectations, reporting a smaller-than-expected loss of $0.05 per share versus estimates for a $0.08 loss, which suggests some improvement in cost control. Earnings report and conference call
• Positive Sentiment: Bookings surged nearly 2,000%, highlighting stronger commercial demand and giving investors hope that future revenue could improve even though this quarter was weak. TipRanks earnings coverage
• Neutral Sentiment: Management continues to emphasize technical progress and commercialization of its quantum systems, which may support the long-term story but does not offset the near-term revenue weakness. Motley Fool earnings reaction
• Negative Sentiment: Revenue came in at $2.86 million, below the $4.19 million consensus estimate, and was down 80.9% year over year, underscoring that growth remains uneven. Zacks earnings report
• Negative Sentiment: Analysts remain cautious because profitability is still far off and the company continues to post large losses and negative margins, which can pressure the stock even after a beat on EPS. Seeking Alpha earnings preview

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on QBTS. Northland Securities began coverage on shares of D-Wave Quantum in a research note on Monday, April 20th. They issued a “market perform” rating and a $22.00 price objective on the stock. Needham & Company LLC lowered their price objective on shares of D-Wave Quantum from $48.00 to $40.00 and set a “buy” rating on the stock in a research note on Thursday, February 26th. Weiss Ratings cut shares of D-Wave Quantum from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Wednesday, April 29th. TD Cowen began coverage on shares of D-Wave Quantum in a research note on Thursday, February 12th. They issued a “buy” rating on the stock. Finally, Mizuho lowered their price objective on shares of D-Wave Quantum from $46.00 to $40.00 and set an “outperform” rating on the stock in a research note on Friday, February 27th. Fourteen analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $35.53.

D-Wave Quantum Stock Performance

The company has a market cap of $8.28 billion, a P/E ratio of -20.35 and a beta of 1.95. The business’s 50 day simple moving average is $17.83 and its 200 day simple moving average is $22.84. The company has a current ratio of 42.38, a quick ratio of 42.25 and a debt-to-equity ratio of 0.04.

D-Wave Quantum (NYSE:QBTS) last released its earnings results on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, topping analysts’ consensus estimates of ($0.08) by $0.03. D-Wave Quantum had a negative net margin of 1,444.10% and a negative return on equity of 58.58%. The company had revenue of $2.86 million for the quarter, compared to analysts’ expectations of $4.19 million. During the same quarter last year, the business earned ($0.02) EPS. The firm’s revenue was down 80.9% compared to the same quarter last year. Sell-side analysts predict that D-Wave Quantum Inc. will post -0.44 earnings per share for the current fiscal year.

Insider Activity

In other D-Wave Quantum news, Director John D. Dilullo sold 8,000 shares of the firm’s stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $18.01, for a total transaction of $144,080.00. Following the sale, the director owned 19,803 shares in the company, valued at approximately $356,652.03. This trade represents a 28.77% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Sophie C. Ames sold 3,070 shares of the firm’s stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $21.35, for a total transaction of $65,544.50. Following the sale, the vice president owned 643,678 shares in the company, valued at approximately $13,742,525.30. The trade was a 0.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 31,776 shares of company stock worth $574,571 in the last quarter. 3.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On D-Wave Quantum

A number of institutional investors have recently added to or reduced their stakes in QBTS. Vanguard Group Inc. grew its holdings in D-Wave Quantum by 41.2% during the 3rd quarter. Vanguard Group Inc. now owns 38,454,869 shares of the company’s stock valued at $950,220,000 after buying an additional 11,218,255 shares in the last quarter. UBS Group AG grew its holdings in D-Wave Quantum by 541.6% during the 3rd quarter. UBS Group AG now owns 12,089,703 shares of the company’s stock valued at $298,737,000 after buying an additional 10,205,427 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in D-Wave Quantum by 136,842.4% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,194,866 shares of the company’s stock valued at $83,546,000 after buying an additional 3,192,533 shares in the last quarter. Clear Street Group Inc. purchased a new stake in D-Wave Quantum during the 3rd quarter valued at approximately $75,344,000. Finally, Goldman Sachs Group Inc. grew its holdings in D-Wave Quantum by 311.6% during the 4th quarter. Goldman Sachs Group Inc. now owns 3,548,013 shares of the company’s stock valued at $92,781,000 after buying an additional 2,685,980 shares in the last quarter. 42.47% of the stock is owned by hedge funds and other institutional investors.

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.