D-Wave Quantum (NASDAQ:QBTS) Trading Down 2.7% – Time to Sell?

Shares of D-Wave Quantum Inc. (NASDAQ:QBTS) traded down 2.7% on Thursday . The company traded as low as $16.60 and last traded at $16.66. Approximately 12,771,738 shares changed hands during mid-day trading, a decline of 54% from the average session volume of 27,899,314 shares. The stock had previously closed at $17.12.

D-Wave Quantum News Summary

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

• Positive Sentiment: The U.S. Commerce Department is reportedly preparing up to $300 million in minority equity investments across D-Wave, Rigetti and Quantinuum. The potential funding could strengthen D-Wave’s balance sheet, extend its cash runway and reinforce government support for domestic quantum technology. Uncle Sam’s Quantum Leap: Feds Fund a $300M Quantum Supercycle
• Positive Sentiment: D-Wave finalized an agreement for up to $100 million under the CHIPS and Science Act, providing non-dilutive strategic capital in addition to federal backing for its quantum-computing development efforts. D-Wave Quantum Finalizes Up To $100 Million U.S. Funding Agreement
• Neutral Sentiment: Director John DiLullo sold 1,100 shares for approximately $19,800 under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by 5.16%, but its preset nature limits its usefulness as a signal of management’s current outlook. D-Wave Quantum Director Stock Sale
• Negative Sentiment: D-Wave issued 7,095,721 shares to the U.S. government as part of the $100 million CHIPS agreement. While the transaction supplies capital, the additional shares create dilution for existing shareholders. D-Wave Issues Shares to U.S. Government
• Negative Sentiment: Several law firms, including Kessler Topaz Meltzer & Check, Pomerantz and KTMC, announced investigations into potential securities-law violations involving D-Wave. The announcements do not establish wrongdoing, but they add headline and potential litigation risk. D-Wave Investor Investigation Alert
• Negative Sentiment: Quantum stocks pulled back as expectations for another Federal Reserve rate move increased. Higher rates tend to pressure high-beta, unprofitable growth companies such as D-Wave by reducing the value investors assign to distant future earnings. Quantum Stocks Fall as Rate-Hike Odds Climb
• Negative Sentiment: D-Wave’s latest quarterly results showed a $0.10 per-share loss and $3.08 million in revenue, missing estimates of a $0.08 loss and $4.03 million in revenue. Continued losses and a very high valuation remain important risks for investors.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on QBTS shares. Cantor Fitzgerald reissued an “overweight” rating and set a $40.00 price objective on shares of D-Wave Quantum in a research 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 report on Friday, August 28th. Rosenblatt Securities reiterated a “buy” rating and set a $43.00 price target on shares of D-Wave Quantum in a report on Friday, August 7th. B. Riley Financial upped their price objective on D-Wave Quantum from $36.00 to $40.00 and gave the company a “buy” rating in a research note on Tuesday, June 2nd. Finally, Canaccord Genuity Group set a $35.00 target price on D-Wave Quantum in a research note on Thursday, August 6th. Thirteen equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, D-Wave Quantum has a consensus rating of “Moderate Buy” and a consensus target price of $36.27.

D-Wave Quantum Stock Performance

The stock has a market capitalization of $6.16 billion, a P/E ratio of -23.46 and a beta of 2.15. The company has a quick ratio of 20.42, a current ratio of 20.55 and a debt-to-equity ratio of 0.03. The company has a 50-day moving average price of $18.92 and a two-hundred day moving average price of $20.02.

D-Wave Quantum (NASDAQ:QBTS) last posted its earnings results on Thursday, August 6th. The company reported ($0.10) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.08) by ($0.02). D-Wave Quantum had a negative return on equity of 26.67% and a negative net margin of 2,001.59%.The firm had revenue of $3.08 million during the quarter, compared to analysts’ expectations of $4.03 million. During the same quarter in the prior year, the company earned ($0.08) earnings per share. The business’s revenue for the quarter was down 0.6 compared to the same quarter last year. Equities analysts expect that D-Wave Quantum Inc. will post -0.46 earnings per share for the current year.

Insiders Place Their Bets

In other D-Wave Quantum news, VP Sophie Ames sold 3,070 shares of the business’s stock in a transaction on Monday, July 20th. The shares were sold at an average price of $16.95, for a total transaction of $52,036.50. Following the transaction, the vice president directly owned 589,009 shares of the company’s stock, valued at approximately $9,983,702.55. The trade was a 0.52% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Rohit Ghai sold 13,518 shares of D-Wave Quantum stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $26.41, for a total value of $357,010.38. Following the sale, the director directly owned 23,617 shares in the company, valued at approximately $623,724.97. The trade was a 36.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 263,731 shares of company stock worth $6,676,339. 1.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On D-Wave Quantum

Institutional investors and hedge funds have recently made changes to their positions in the company. World Investment Advisors lifted its stake in shares of D-Wave Quantum by 195.7% in the 4th quarter. World Investment Advisors now owns 41,691 shares of the company’s stock worth $1,090,000 after purchasing an additional 27,592 shares during the period. Allspring Global Investments Holdings LLC increased its holdings in D-Wave Quantum by 319.3% during the first quarter. Allspring Global Investments Holdings LLC now owns 98,747 shares of the company’s stock valued at $1,353,000 after buying an additional 75,198 shares during the last quarter. Clear Street Group Inc. raised its position in D-Wave Quantum by 40.4% in the fourth 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. Cibc World Market Inc. boosted its stake in shares of D-Wave Quantum by 295.0% during the 4th quarter. Cibc World Market Inc. now owns 54,760 shares of the company’s stock worth $1,432,000 after acquiring an additional 40,897 shares during the last quarter. Finally, Intech Investment Management LLC grew its position in shares of D-Wave Quantum by 26.9% during the 4th quarter. Intech Investment Management LLC now owns 112,742 shares of the company’s stock valued at $2,948,000 after acquiring an additional 23,892 shares during the period. Institutional investors own 42.47% of the company’s stock.

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.