D-Wave Quantum (NYSE:QBTS) Trading Down 8.2% – Here’s Why

D-Wave Quantum Inc. (NYSE:QBTS) was down 8.2% during trading on Friday . The stock traded as low as $24.77 and last traded at $25.2750. Approximately 33,345,380 shares were traded during trading, a decline of 45% from the average daily volume of 60,273,086 shares. The stock had previously closed at $27.52.

Analyst Ratings Changes

QBTS has been the topic of several research reports. B. Riley boosted their price target on shares of D-Wave Quantum from $22.00 to $33.00 and gave the company a “buy” rating in a research report on Monday, September 22nd. Wedbush began coverage on D-Wave Quantum in a research report on Wednesday, December 17th. They set an “outperform” rating and a $35.00 target price on the stock. Wall Street Zen lowered D-Wave Quantum from a “hold” rating to a “sell” rating in a report on Saturday, December 20th. Mizuho initiated coverage on D-Wave Quantum in a research note on Thursday, December 11th. They set an “outperform” rating and a $46.00 price objective on the stock. Finally, Williams Trading set a $35.00 target price on D-Wave Quantum in a research note on Monday, November 10th. Fourteen equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $33.67.

D-Wave Quantum Price Performance

The business’s fifty day moving average price is $27.60 and its 200-day moving average price is $22.61. The company has a market capitalization of $8.85 billion, a P/E ratio of -18.72 and a beta of 1.57. The company has a current ratio of 54.68, a quick ratio of 54.49 and a debt-to-equity ratio of 0.05.

D-Wave Quantum (NYSE:QBTS) last released its quarterly earnings results on Thursday, November 6th. The company reported ($0.05) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.02. The business had revenue of $3.74 million for the quarter, compared to the consensus estimate of $3.03 million. D-Wave Quantum had a negative return on equity of 97.58% and a negative net margin of 1,651.81%.The business’s revenue was up 105.6% compared to the same quarter last year. As a group, sell-side analysts predict that D-Wave Quantum Inc. will post -0.41 earnings per share for the current fiscal year.

Insider Buying and Selling at D-Wave Quantum

In related news, CFO John M. Markovich sold 200,000 shares of the stock in a transaction on Thursday, November 20th. The shares were sold at an average price of $22.94, for a total transaction of $4,588,000.00. Following the transaction, the chief financial officer owned 1,482,874 shares of the company’s stock, valued at approximately $34,017,129.56. This trade represents a 11.88% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Alan E. Baratz sold 806,288 shares of the business’s stock in a transaction on Tuesday, November 11th. The stock was sold at an average price of $28.87, for a total transaction of $23,277,534.56. Following the completion of the sale, the chief executive officer directly owned 2,801,265 shares of the company’s stock, valued at $80,872,520.55. This represents a 22.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 2,342,087 shares of company stock worth $66,073,024 over the last ninety days. Insiders own 3.20% of the company’s stock.

Hedge Funds Weigh In On D-Wave Quantum

A number of hedge funds have recently modified their holdings of the company. IFP Advisors Inc grew its position in D-Wave Quantum by 123.8% during the 2nd quarter. IFP Advisors Inc now owns 14,814 shares of the company’s stock valued at $217,000 after purchasing an additional 8,194 shares during the last quarter. World Investment Advisors bought a new position in shares of D-Wave Quantum in the second quarter worth approximately $190,000. Farther Finance Advisors LLC grew its holdings in shares of D-Wave Quantum by 491.3% during the second quarter. Farther Finance Advisors LLC now owns 16,321 shares of the company’s stock valued at $239,000 after buying an additional 13,561 shares during the last quarter. SG Americas Securities LLC purchased a new position in D-Wave Quantum in the 2nd quarter worth approximately $14,349,000. Finally, Allspring Global Investments Holdings LLC purchased a new stake in D-Wave Quantum during the 2nd quarter valued at $217,000. Hedge funds and other 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.