D-Wave Quantum (NYSE:QBTS) Shares Down 2.4% – Should You Sell?

Shares of D-Wave Quantum Inc. (NYSE:QBTS) dropped 2.4% during mid-day trading on Wednesday . The company traded as low as $17.26 and last traded at $17.3640. 14,423,242 shares were traded during mid-day trading, a decline of 53% from the average session volume of 30,547,768 shares. The stock had previously closed at $17.80.

Analysts Set New Price Targets

A number of equities analysts have recently commented on QBTS shares. Mizuho raised their price objective on shares of D-Wave Quantum from $29.00 to $35.00 and gave the stock an “outperform” rating in a report on Monday, June 15th. Weiss Ratings raised shares of D-Wave Quantum from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, June 23rd. Needham & Company LLC restated a “buy” rating and set a $40.00 price target on shares of D-Wave Quantum in a research note on Tuesday, June 2nd. B. Riley Financial lifted their price objective on D-Wave Quantum from $36.00 to $40.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. Finally, Jefferies Financial Group reiterated a “buy” rating on shares of D-Wave Quantum in a research note on Tuesday, May 12th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $36.80.

D-Wave Quantum Price Performance

The company has a debt-to-equity ratio of 0.03, a quick ratio of 21.31 and a current ratio of 21.41. The company’s 50 day moving average price is $23.26 and its 200 day moving average price is $21.48. The company has a market cap of $6.42 billion, a price-to-earnings ratio of -15.37 and a beta of 2.11.

D-Wave Quantum (NYSE:QBTS) last announced its earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.08) by $0.03. The business had revenue of $2.86 million during the quarter, compared to analysts’ expectations 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 firm’s revenue for the quarter was down 80.9% on a year-over-year basis. During the same quarter last year, the company posted ($0.02) EPS. On average, equities research analysts predict that D-Wave Quantum Inc. will post -0.42 earnings per share for the current fiscal year.

Insider Transactions at D-Wave Quantum

In other news, CEO Alan E. Baratz sold 687,627 shares of D-Wave Quantum stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $26.13, for a total value of $17,967,693.51. Following the completion of the transaction, the chief executive officer owned 3,299,771 shares in the company, valued at approximately $86,223,016.23. The trade was a 17.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Rohit Ghai sold 13,518 shares of the business’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 value of $357,010.38. Following the completion of the transaction, the director directly owned 23,617 shares in the company, valued at $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. Over the last 90 days, insiders sold 1,360,772 shares of company stock valued at $35,737,111. 1.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On D-Wave Quantum

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