D-Wave Quantum (NYSE:QBTS) Trading Down 5.6% – What’s Next?

Shares of D-Wave Quantum Inc. (NYSE:QBTS) traded down 5.6% during mid-day trading on Tuesday . The stock traded as low as $26.33 and last traded at $27.74. 54,272,999 shares were traded during mid-day trading, an increase of 71% from the average session volume of 31,706,129 shares. The stock had previously closed at $29.40.

More D-Wave Quantum News

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

• Positive Sentiment: D-Wave announced it secured second-year funding for its superconducting quantum innovation work under the U.S. Microelectronics Commons program, reinforcing government support for its hardware development efforts. Article Title
• Positive Sentiment: Multiple reports said the federal government plans to provide hundreds of millions of dollars to quantum firms, which investors see as a broader tailwind for D-Wave’s domestic foundry and technology push. Article Title
• Positive Sentiment: Commentary around QBTS pointed to record bookings and expanding system sales as signs that the business is gaining traction beyond the funding headlines. Article Title
• Neutral Sentiment: D-Wave also defended its “beyond-classical” benchmark claims, helping support the company’s technical credibility but not directly changing near-term fundamentals. Article Title
• Negative Sentiment: One report noted insider sales after the recent stock surge, which could make some investors cautious after the sharp run-up in QBTS shares. Article Title

Analyst Ratings Changes

Several equities analysts recently issued reports on the stock. Needham & Company LLC restated a “buy” rating and issued a $40.00 target price on shares of D-Wave Quantum in a report on Wednesday, May 13th. Zacks Research upgraded shares of D-Wave Quantum from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Northland Securities assumed coverage on shares of D-Wave Quantum in a report on Monday, April 20th. They issued a “market perform” rating and a $22.00 target price on the stock. Cantor Fitzgerald restated an “overweight” rating and issued a $40.00 target price on shares of D-Wave Quantum in a report on Wednesday, May 13th. Finally, Weiss Ratings downgraded shares of D-Wave Quantum from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Wednesday, April 29th. Fourteen equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $34.67.

D-Wave Quantum Trading Down 5.6%

The company has a quick ratio of 21.31, a current ratio of 21.41 and a debt-to-equity ratio of 0.03. The firm’s 50-day moving average price is $18.63 and its 200 day moving average price is $22.13. The company has a market capitalization of $10.26 billion, a P/E ratio of -24.55 and a beta of 1.95.

D-Wave Quantum (NYSE:QBTS) last posted its earnings results on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, topping the consensus estimate of ($0.08) by $0.03. The company had revenue of $2.86 million during the quarter, compared to the consensus estimate of $4.19 million. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The firm’s revenue for the quarter was down 80.9% on a year-over-year basis. During the same period in the previous year, the firm posted ($0.02) earnings per share. As a group, equities research analysts predict that D-Wave Quantum Inc. will post -0.44 earnings per share for the current year.

Insider Buying and Selling at D-Wave Quantum

In other news, Director Rohit Ghai sold 10,000 shares of the business’s stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $17.62, for a total transaction of $176,200.00. Following the completion of the sale, the director directly owned 27,778 shares of the company’s stock, valued at $489,448.36. The trade was a 26.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO John M. Markovich sold 10,706 shares of the business’s stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $17.63, for a total transaction of $188,746.78. Following the sale, the chief financial officer directly owned 1,451,427 shares of the company’s stock, valued at approximately $25,588,658.01. The trade was a 0.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 54,801 shares of company stock valued at $1,011,586. Insiders own 3.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Mutual Advisors LLC purchased a new position in D-Wave Quantum during the third quarter worth about $1,069,000. Federated Hermes Inc. boosted its stake in D-Wave Quantum by 259,560.6% in the third quarter. Federated Hermes Inc. now owns 184,359 shares of the company’s stock valued at $4,556,000 after acquiring an additional 184,288 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its stake in D-Wave Quantum by 370.9% in the third quarter. Caitong International Asset Management Co. Ltd now owns 96,248 shares of the company’s stock valued at $2,378,000 after acquiring an additional 75,807 shares during the last quarter. SG Americas Securities LLC boosted its stake in D-Wave Quantum by 254.7% in the fourth quarter. SG Americas Securities LLC now owns 2,272,020 shares of the company’s stock valued at $59,413,000 after acquiring an additional 1,631,415 shares during the last quarter. Finally, Jones Financial Companies Lllp boosted its stake in D-Wave Quantum by 61.2% in the third quarter. Jones Financial Companies Lllp now owns 104,661 shares of the company’s stock valued at $2,801,000 after acquiring an additional 39,751 shares during the last quarter. 42.47% of the stock is currently owned by hedge funds and other institutional investors.

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.