D-Wave Quantum (NYSE:QBTS) Shares Down 3.5% – Should You Sell?

D-Wave Quantum Inc. (NYSE:QBTS) fell 3.5% during trading on Wednesday . The stock traded as low as $17.87 and last traded at $18.28. 15,344,901 shares traded hands during mid-day trading, a decline of 51% from the average daily volume of 31,084,895 shares. The stock had previously closed at $18.95.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on QBTS. Zacks Research raised shares of D-Wave Quantum from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Canaccord Genuity Group reduced their price target on shares of D-Wave Quantum from $43.00 to $41.00 and set a “buy” rating for the company in a research report on Wednesday, May 13th. Jefferies Financial Group reaffirmed a “buy” rating on shares of D-Wave Quantum in a research note on Tuesday, May 12th. Stifel Nicolaus set a $35.00 price objective on D-Wave Quantum in a research note on Tuesday, June 2nd. Finally, B. Riley Financial increased their target price on D-Wave Quantum from $36.00 to $40.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. Fourteen research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $36.80.

D-Wave Quantum Price Performance

The stock’s fifty day moving average price is $23.83 and its 200-day moving average price is $21.79. The firm has a market cap of $6.76 billion, a PE ratio of -16.18 and a beta of 2.11. The company has a debt-to-equity ratio of 0.03, a current ratio of 21.41 and a quick ratio of 21.31.

D-Wave Quantum (NYSE:QBTS) last posted its quarterly 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. The firm had revenue of $2.86 million for 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 company’s revenue for the quarter was down 80.9% on a year-over-year basis. During the same period last year, the firm posted ($0.02) earnings per share. As a group, equities analysts expect that D-Wave Quantum Inc. will post -0.42 EPS for the current fiscal year.

Insider Buying and Selling

In other D-Wave Quantum news, VP Sophie C. Ames sold 23,025 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $18.98, for a total value of $437,014.50. Following the transaction, the vice president directly owned 596,803 shares of the company’s stock, valued at $11,327,320.94. This trade represents a 3.71% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John D. Dilullo sold 7,850 shares of the business’s stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $24.43, for a total value of $191,775.50. Following the transaction, the director owned 21,310 shares in the company, valued at approximately $520,603.30. This represents a 26.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,363,842 shares of company stock worth $35,802,656 in the last 90 days. Corporate insiders own 1.30% of the company’s stock.

Hedge Funds Weigh In On D-Wave Quantum

A number of institutional investors have recently added to or reduced their stakes in the stock. UBS Group AG boosted its stake in D-Wave Quantum by 541.6% during the third quarter. UBS Group AG now owns 12,089,703 shares of the company’s stock worth $298,737,000 after buying an additional 10,205,427 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of D-Wave Quantum by 11.5% in the 4th quarter. Geode Capital Management LLC now owns 8,394,726 shares of the company’s stock worth $220,085,000 after acquiring an additional 866,405 shares during the last quarter. State Street Corp increased its stake in shares of D-Wave Quantum by 5.3% in the 4th quarter. State Street Corp now owns 7,707,085 shares of the company’s stock worth $201,540,000 after acquiring an additional 385,809 shares during the last quarter. Marex Group plc raised its holdings in shares of D-Wave Quantum by 74.9% during the 4th quarter. Marex Group plc now owns 4,592,656 shares of the company’s stock worth $120,098,000 after acquiring an additional 1,966,500 shares during the period. Finally, Clear Street Group Inc. raised its holdings in shares of D-Wave Quantum by 40.4% during the 4th quarter. Clear Street Group Inc. now owns 4,281,254 shares of the company’s stock worth $111,955,000 after acquiring an additional 1,232,106 shares during the period. Hedge funds and other 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.