D-Wave Quantum (NYSE:QBTS) Trading 2.5% Higher – Should You Buy?

Shares of D-Wave Quantum Inc. (NYSE:QBTS) traded up 2.5% on Thursday . The stock traded as high as $21.70 and last traded at $20.14. 43,499,626 shares were traded during mid-day trading, an increase of 30% from the average session volume of 33,361,852 shares. The stock had previously closed at $19.65.

Key Headlines Impacting D-Wave Quantum

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

• Positive Sentiment: Material bookings and enterprise traction — Management reported Q4 bookings of $13.4M (big sequential jump) and said January bookings topped $30M; the company also disclosed large Advantage2 system sales and institutional contracts that underpin future revenue upside. MarketBeat: Despite a Double Miss
• Positive Sentiment: Strong cash runway following the Quantum Circuits acquisition — D-Wave finished the period with roughly $885M in cash & marketable securities even after the acquisition and cash outlays, which reduces near-term financing risk while the company invests in R&D and go-to-market. MarketBeat: Cash Position
• Neutral Sentiment: Full earnings materials and call transcripts are available for investors who want details on bookings composition, margin outlook and integration plans; the call provides color but no immediate catalytic guidance. Earnings Call Transcript
• Neutral Sentiment: Analysts remain largely constructive but are resetting targets — several firms kept buy/outperform ratings while trimming targets, leaving consensus upside but lowering near-term sentiment. Benzinga: Analyst Coverage
• Negative Sentiment: Double miss on the quarter — reported EPS missed estimates (wider loss than expected) and revenue of $2.75M came in below consensus, highlighting that current monetization remains small and lumpy. Zacks: Q4 Earnings Miss
• Negative Sentiment: Post-earnings price-target cuts and investor rotation pressured the rally — several firms trimmed targets (examples: Needham, Mizuho, Roth) and media noted an initial pop that faded as analysts lowered targets and investors weighed long-term promise versus weak near-term results. The Motley Fool: Reaction

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on QBTS shares. Needham & Company LLC decreased their price target on shares of D-Wave Quantum from $48.00 to $40.00 and set a “buy” rating on the stock in a report on Thursday. Evercore started coverage on shares of D-Wave Quantum in a research report on Wednesday, December 3rd. They issued an “outperform” rating and a $44.00 target price for the company. Cantor Fitzgerald raised their price target on D-Wave Quantum from $20.00 to $40.00 and gave the company an “overweight” rating in a research report on Friday, November 7th. Rosenblatt Securities reaffirmed a “buy” rating and set a $43.00 price target on shares of D-Wave Quantum in a research note on Wednesday, January 28th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of D-Wave Quantum in a research report on Monday, December 29th. Fourteen investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $36.50.

D-Wave Quantum Trading Down 7.0%

The firm has a market capitalization of $6.93 billion, a PE ratio of -17.03 and a beta of 1.56. The firm’s 50-day simple moving average is $24.24 and its 200-day simple moving average is $24.90. The company has a quick ratio of 54.49, a current ratio of 54.68 and a debt-to-equity ratio of 0.05.

D-Wave Quantum (NYSE:QBTS) last released its earnings results on Thursday, February 26th. The company reported ($0.09) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.04). D-Wave Quantum had a negative net margin of 1,444.10% and a negative return on equity of 67.75%. The company had revenue of $2.75 million during the quarter, compared to the consensus estimate of $3.74 million. D-Wave Quantum’s revenue was up 21.7% on a year-over-year basis. Equities analysts expect that D-Wave Quantum Inc. will post -0.41 earnings per share for the current year.

Insider Activity

In other news, Director Kirstjen Nielsen sold 7,000 shares of the firm’s stock in a transaction that occurred on Wednesday, December 3rd. The shares were sold at an average price of $22.62, for a total value of $158,340.00. Following the transaction, the director owned 112,673 shares in the company, valued at approximately $2,548,663.26. This trade represents a 5.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director John D. Dilullo sold 8,000 shares of D-Wave Quantum stock in a transaction on Friday, December 5th. The stock was sold at an average price of $27.36, for a total transaction of $218,880.00. Following the completion of the transaction, the director directly owned 27,803 shares in the company, valued at approximately $760,690.08. The trade was a 22.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 1,074,466 shares of company stock valued at $31,558,806. Corporate insiders own 3.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Root Financial Partners LLC lifted its position in shares of D-Wave Quantum by 388.0% in the 4th quarter. Root Financial Partners LLC now owns 976 shares of the company’s stock worth $26,000 after purchasing an additional 776 shares during the period. Kemnay Advisory Services Inc. purchased a new stake in D-Wave Quantum in the fourth quarter worth about $28,000. EverSource Wealth Advisors LLC lifted its holdings in D-Wave Quantum by 267.7% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company’s stock worth $30,000 after buying an additional 838 shares during the period. Mcguire Capital Advisors Inc. bought a new stake in D-Wave Quantum during the 4th quarter valued at approximately $31,000. Finally, Ancora Advisors LLC purchased a new position in shares of D-Wave Quantum during the 3rd quarter worth approximately $30,000. 42.47% of the stock is owned by hedge funds and other institutional investors.

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.