D-Wave Quantum (NYSE:QBTS) Shares Down 6.8% – Here’s Why

D-Wave Quantum Inc. (NYSE:QBTS) traded down 6.8% during mid-day trading on Tuesday . The company traded as low as $20.52 and last traded at $21.0340. Approximately 20,438,639 shares traded hands during trading, a decline of 36% from the average session volume of 31,766,309 shares. The stock had previously closed at $22.56.

Wall Street Analyst Weigh In

A number of brokerages recently commented on QBTS. Zacks Research raised D-Wave Quantum from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Canaccord Genuity Group cut their price target on shares of D-Wave Quantum from $43.00 to $41.00 and set a “buy” rating on the stock in a report on Wednesday, May 13th. Weiss Ratings upgraded shares of D-Wave Quantum from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, June 23rd. Rosenblatt Securities reissued a “buy” rating and set a $43.00 price objective on shares of D-Wave Quantum in a report on Thursday, June 11th. Finally, Mizuho boosted their target price on shares of D-Wave Quantum from $29.00 to $35.00 and gave the stock an “outperform” rating in a research report on Monday, June 15th. Fourteen 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 stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $36.80.

D-Wave Quantum Stock Down 6.8%

The firm has a market cap of $7.78 billion, a price-to-earnings ratio of -18.61 and a beta of 2.11. The stock has a 50-day moving average of $23.66 and a 200-day moving average of $22.12. The company has a current ratio of 21.41, a quick ratio of 21.31 and a debt-to-equity ratio of 0.03.

D-Wave Quantum (NYSE:QBTS) last issued its earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share for the quarter, topping the consensus estimate of ($0.08) by $0.03. D-Wave Quantum had a negative return on equity of 44.06% and a negative net margin of 2,957.23%.The firm had revenue of $2.86 million for the quarter, compared to analyst estimates of $4.19 million. During the same period last year, the company earned ($0.02) earnings per share. The firm’s revenue for the quarter was down 80.9% on a year-over-year basis. As a group, sell-side analysts forecast that D-Wave Quantum Inc. will post -0.43 EPS for the current fiscal year.

Insider Transactions at D-Wave Quantum

In other D-Wave Quantum news, CEO Alan E. Baratz sold 687,627 shares of the business’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $26.13, for a total transaction of $17,967,693.51. Following the completion of the transaction, the chief executive officer directly owned 3,299,771 shares of the company’s stock, valued at $86,223,016.23. The trade was a 17.25% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Rohit Ghai sold 13,518 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $26.41, for a total transaction of $357,010.38. Following the completion of the transaction, the director owned 23,617 shares of the company’s stock, valued at approximately $623,724.97. This trade represents a 36.40% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,363,842 shares of company stock worth $35,802,656 over the last 90 days. Corporate insiders own 1.30% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of QBTS. GAMMA Investing LLC increased its stake in D-Wave Quantum by 32.8% during the 2nd quarter. GAMMA Investing LLC now owns 3,224 shares of the company’s stock valued at $77,000 after buying an additional 796 shares during the period. CoreCap Advisors LLC raised its stake in shares of D-Wave Quantum by 9.2% in the 2nd quarter. CoreCap Advisors LLC now owns 6,115 shares of the company’s stock worth $147,000 after buying an additional 515 shares in the last quarter. Anderson Hoagland & Co. acquired a new stake in shares of D-Wave Quantum in the second quarter valued at $1,537,000. Parallel Advisors LLC boosted its stake in D-Wave Quantum by 545.5% during the first quarter. Parallel Advisors LLC now owns 1,788 shares of the company’s stock valued at $26,000 after buying an additional 1,511 shares in the last quarter. Finally, Optiver Holding B.V. boosted its stake in D-Wave Quantum by 448.0% during the first quarter. Optiver Holding B.V. now owns 24,697 shares of the company’s stock valued at $356,000 after buying an additional 20,190 shares in the last quarter. 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.