D-Wave Quantum (NYSE:QBTS) Trading 11.1% Higher – Still a Buy?

D-Wave Quantum Inc. (NYSE:QBTS)’s share price traded up 11.1% on Thursday . The stock traded as high as $18.13 and last traded at $17.98. Approximately 19,905,449 shares traded hands during mid-day trading, a decline of 34% from the average session volume of 30,248,213 shares. The stock had previously closed at $16.18.

Trending Headlines about D-Wave Quantum

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

• Positive Sentiment: Analyst support: Rosenblatt Securities reiterated a “Buy” rating, signaling confidence in D-Wave’s long-term growth prospects despite the recent sector weakness. D-Wave Quantum Gets a Buy from Rosenblatt Securities
• Positive Sentiment: AT&T adoption validates commercial use: AT&T is expanding D-Wave’s annealing-based quantum technology across network-operations workflows. One optimization task reportedly fell from roughly an hour to less than 15 seconds, offering evidence that the technology can deliver practical enterprise benefits. Is D-Wave’s AT&T Win Redefining Its Competitive Edge?
• Positive Sentiment: Optimistic earnings setup: D-Wave is expected to report second-quarter results next week, with forecasts calling for more than 50% year-over-year EPS improvement. Analysts and investors are also focusing on record bookings, a growing backlog and stronger commercial traction. 2 Quantum Stocks Expected to Deliver 50%+ Earnings Growth Next Week RGTI vs. QBTS
• Neutral Sentiment: Earnings are a key near-term catalyst: Results will help determine whether D-Wave’s commercial progress is translating into revenue growth and could influence whether the quantum sector’s sell-off has gone too far. Quantum Earnings Could Decide Whether the Sector’s Sell-Off Has Gone Too Far
• Negative Sentiment: Insider selling has weighed on sentiment: Reports linking recent weakness to insider stock sales may raise concerns about management confidence and have added short-term selling pressure. D-Wave Shares Following Insider Selling
• Negative Sentiment: Sector-wide risk remains elevated: Quantum stocks have experienced a sharp recent decline as investors reassess speculative AI-related valuations. D-Wave remains unprofitable, and its latest reported revenue substantially missed expectations, increasing the importance of bookings, guidance and profitability commentary in the upcoming report. Is More Pain Coming for Quantum Computing Stocks?

Wall Street Analysts Forecast Growth

QBTS has been the topic of several research analyst reports. B. Riley Financial boosted their price objective on D-Wave Quantum from $36.00 to $40.00 and gave the company a “buy” rating in a research report on Tuesday, June 2nd. Canaccord Genuity Group cut their target price on 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. Zacks Research raised D-Wave Quantum from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 20th. Needham & Company LLC reissued a “buy” rating and set a $40.00 target price on shares of D-Wave Quantum in a research note on Tuesday, June 2nd. Finally, Northland Securities began coverage on D-Wave Quantum in a report on Monday, April 20th. They issued a “market perform” rating and a $22.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, D-Wave Quantum has an average rating of “Moderate Buy” and a consensus price target of $36.47.

D-Wave Quantum Stock Up 0.6%

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 company has a market capitalization of $6.69 billion, a PE ratio of -16.00 and a beta of 2.11. The company’s 50 day moving average is $22.55 and its two-hundred day moving average is $20.88.

D-Wave Quantum (NYSE:QBTS) last announced its quarterly 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. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The business had revenue of $2.86 million for the quarter, compared to analysts’ expectations of $4.19 million. During the same quarter in the previous year, the company earned ($0.02) EPS. The business’s quarterly revenue was down 80.9% compared to the same quarter last year. On average, analysts anticipate that D-Wave Quantum Inc. will post -0.42 earnings per share for the current year.

Insider Transactions at D-Wave Quantum

In other news, Director Rohit Ghai sold 13,518 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $26.41, for a total transaction of $357,010.38. Following the sale, the director directly owned 23,617 shares of the company’s stock, valued at $623,724.97. This represents a 36.40% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Sophie C. Ames sold 3,070 shares of the company’s stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $16.95, for a total value of $52,036.50. Following the sale, the vice president directly owned 589,009 shares in the company, valued at $9,983,702.55. This trade represents a 0.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 1,363,842 shares of company stock valued at $35,789,148. 1.30% of the stock is owned by insiders.

Hedge Funds Weigh In On D-Wave Quantum

Institutional investors have recently bought and sold shares of the business. Root Financial Partners LLC increased its holdings in shares of D-Wave Quantum by 388.0% in the 4th quarter. Root Financial Partners LLC now owns 976 shares of the company’s stock worth $26,000 after buying an additional 776 shares during the last quarter. Parallel Advisors LLC grew its position in D-Wave Quantum by 545.5% in the first quarter. Parallel Advisors LLC now owns 1,788 shares of the company’s stock worth $26,000 after acquiring an additional 1,511 shares in the last quarter. Kemnay Advisory Services Inc. bought a new stake in D-Wave Quantum during the fourth quarter worth approximately $28,000. PeakShares LLC purchased a new stake in D-Wave Quantum during the first quarter valued at approximately $29,000. Finally, EverSource Wealth Advisors LLC lifted its stake in shares of D-Wave Quantum by 267.7% in the 4th quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company’s stock valued at $30,000 after purchasing an additional 838 shares during the last quarter. 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.