D-Wave Quantum (NASDAQ:QBTS) Stock Jumps 1.6% – Time to Buy?

D-Wave Quantum Inc. (NASDAQ:QBTS) shares shot up 1.6% during trading on Wednesday. The stock traded as high as $11.02 and last traded at $10.65. 14,596,715 shares were traded during mid-day trading, a decline of 43% from the average daily volume of 25,410,697 shares. The stock had previously closed at $10.48.

Key Headlines Impacting D-Wave Quantum

Here are a few of the latest headlines about QBTS:

• Neutral Sentiment: Canaccord Genuity, Needham, Stifel and Rosenblatt maintained Buy ratings, but each cut its price target. The continued positive ratings may support confidence, while the lower targets signal more cautious expectations. Canaccord Genuity Group recommendations
• Negative Sentiment: Several law firms reiterated notices about a pending securities class action, with a December 15 lead-plaintiff deadline. The repeated notices do not establish wrongdoing, but can keep litigation risk in focus for investors. Levi & Korsinsky class-action reminder
• Negative Sentiment: Investors are also digesting mixed Q3 results: revenue of $4.51 million beat estimates and rose 21% year over year, but the loss per share was wider than expected and quarterly bookings fell about 19%. Nine-month bookings surged, yet elevated costs and cash burn remain execution risks. D-Wave Q3 results and cash burn

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on QBTS. Rosenblatt Securities lowered their price target on D-Wave Quantum from $43.00 to $30.00 and set a “buy” rating on the stock in a research report on Wednesday. Zacks Research cut D-Wave Quantum from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 18th. Weiss Ratings upgraded D-Wave Quantum from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, August 28th. BMO Capital Markets began coverage on D-Wave Quantum in a report on Thursday, August 20th. They issued an “outperform” rating and a $35.00 target price on the stock. Finally, B. Riley Financial lowered their target price on D-Wave Quantum from $27.00 to $22.00 and set a “buy” rating on the stock in a report on Monday. Fourteen research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, D-Wave Quantum has an average rating of “Moderate Buy” and an average target price of $30.71.

D-Wave Quantum Trading Up 1.6%

The firm has a market cap of $3.94 billion, a P/E ratio of -15.00 and a beta of 2.35. The company’s 50 day moving average is $14.34 and its two-hundred day moving average is $18.76. The company has a debt-to-equity ratio of 0.03, a current ratio of 20.55 and a quick ratio of 20.42.

D-Wave Quantum (NASDAQ:QBTS) last issued its earnings results on Tuesday, November 10th. The company reported ($0.13) EPS for the quarter, missing the consensus estimate of ($0.10) by ($0.03). The firm had revenue of $4.51 million during the quarter, compared to the consensus estimate of $4.37 million. D-Wave Quantum had a negative return on equity of 26.67% and a negative net margin of 2,001.59%. During the same period last year, the business earned ($0.41) earnings per share. On average, sell-side analysts predict that D-Wave Quantum Inc. will post -0.50 earnings per share for the current year.

Institutional Trading of D-Wave Quantum

Institutional investors have recently made changes to their positions in the business. Burr Financial Services LLC acquired a new position in D-Wave Quantum in the third quarter worth about $6,343,000. Allspring Global Investments Holdings LLC boosted 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 purchasing an additional 75,198 shares in the last quarter. The Manufacturers Life Insurance Company boosted its holdings in D-Wave Quantum by 64.7% during the first quarter. The Manufacturers Life Insurance Company now owns 183,481 shares of the company’s stock valued at $2,648,000 after purchasing an additional 72,100 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in shares of D-Wave Quantum by 289.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 143,064 shares of the company’s stock valued at $2,064,000 after purchasing an additional 106,324 shares during the period. Finally, Citizens Financial Group Inc. RI bought a new stake in shares of D-Wave Quantum in the 2nd quarter valued at approximately $1,945,000. 42.47% of the stock is currently owned by institutional investors and hedge funds.

D-Wave Quantum Company Profile

D-Wave Quantum develops quantum computing systems, software and services for commercial, government and research users. The company focuses on quantum annealing, an approach designed to help solve complex optimization and sampling problems, and offers hybrid tools that combine quantum processing with classical computing. Its offerings include Advantage quantum computers, the Leap quantum cloud service, and software for building and running applications. D-Wave’s technology is used to explore challenges such as scheduling, resource allocation and supply-chain optimization.