D-Wave Quantum (NASDAQ:QBTS) Trading Down 2.7% – Here’s What Happened

D-Wave Quantum Inc. (NASDAQ:QBTS)’s share price was down 2.7% during mid-day trading on Thursday . The company traded as low as $18.44 and last traded at $18.80. Approximately 11,687,213 shares were traded during mid-day trading, a decline of 59% from the average daily volume of 28,852,174 shares. The stock had previously closed at $19.32.

Trending Headlines about D-Wave Quantum

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

• Positive Sentiment: D-Wave reported a sharp increase in second-quarter bookings, which rose 1,120% to $36 million. That growth could support the company’s long-term commercial outlook if bookings convert into recognized revenue. D-Wave Quantum vs. Microsoft: Which Is the Better Quantum Computing Stock to Own for the Next 5 Years?
• Positive Sentiment: Some analysts see substantial upside for QBTS, with one analysis citing approximately 71% potential price appreciation. Recent U.S. policy support for quantum technology is also viewed as a sector tailwind. D-Wave Stock: 71% Potential Upside, but Is It Enough to Buy QBTS Now?
• Neutral Sentiment: Investors are increasingly differentiating among D-Wave, IonQ, and Rigetti based on revenue growth and financial strength, while also considering diversified technology and quantum ETFs. Quantum Stocks Are Starting to Choose Sides: Should Investors Do the Same?
• Negative Sentiment: Zacks Research downgraded D-Wave from “strong buy” to “hold,” reducing near-term analyst support for the shares. Zacks Research
• Negative Sentiment: Quantum-computing stocks are being sold as a group, with no new company-specific catalyst identified. A rise in long-term Treasury yields has also encouraged investors to rotate away from speculative, pre-profit technology companies. What’s Behind the Quantum Stock Selloff?
• Negative Sentiment: Valuation remains a key concern: D-Wave has minimal current revenue, weak technical momentum, and recently reported quarterly revenue below expectations and a wider-than-expected loss. Investors will likely focus on whether strong bookings translate into sustained revenue growth.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the stock. B. Riley Financial boosted their price objective on shares of D-Wave Quantum from $36.00 to $40.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. Benchmark assumed coverage on shares of D-Wave Quantum in a report on Monday, July 27th. They set a “buy” rating and a $30.00 target price on the stock. Jefferies Financial Group set a $40.00 price target on shares of D-Wave Quantum in a research report on Friday, August 7th. Roth Capital reiterated a “buy” rating and set a $30.00 price objective on shares of D-Wave Quantum in a research note on Thursday, August 6th. Finally, Stifel Nicolaus set a $35.00 target price on shares of D-Wave Quantum in a report on Tuesday, June 2nd. Twelve analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, D-Wave Quantum currently has an average rating of “Moderate Buy” and an average target price of $36.36.

D-Wave Quantum Stock Down 2.7%

The company has a debt-to-equity ratio of 0.03, a current ratio of 20.55 and a quick ratio of 20.42. The company has a market capitalization of $6.95 billion, a price-to-earnings ratio of -26.48 and a beta of 2.15. The firm’s fifty day moving average price is $20.78 and its 200-day moving average price is $20.25.

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

Insider Buying and Selling at D-Wave Quantum

In other D-Wave Quantum news, VP Sophie C. Ames sold 3,070 shares of the business’s stock in a transaction 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. The trade was a 0.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Markovich sold 200,000 shares of the company’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $25.71, for a total transaction of $5,142,000.00. Following the sale, the chief financial officer directly owned 1,142,820 shares in the company, valued at approximately $29,381,902.20. This trade represents a 14.89% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 1,340,817 shares of company stock valued at $35,352,133 in the last ninety days. 1.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On D-Wave Quantum

Several large investors have recently added to or reduced their stakes in the business. Root Financial Partners LLC increased its position in shares of D-Wave Quantum by 388.0% during the 4th quarter. Root Financial Partners LLC now owns 976 shares of the company’s stock valued at $26,000 after purchasing an additional 776 shares during the last quarter. Fiduciary Financial Advisors bought a new position in D-Wave Quantum during the second quarter valued at approximately $25,000. Kemnay Advisory Services Inc. purchased a new position in shares of D-Wave Quantum during the fourth quarter worth approximately $28,000. EverSource Wealth Advisors LLC raised its stake in shares of D-Wave Quantum by 267.7% during the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company’s stock worth $30,000 after acquiring an additional 838 shares in the last quarter. Finally, Mcguire Capital Advisors Inc. bought a new stake in shares of D-Wave Quantum in the 4th quarter worth approximately $31,000. 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.