D-Wave Quantum (NYSE:QBTS) Trading 2.8% Higher – Should You Buy?

D-Wave Quantum Inc. (NYSE:QBTS) rose 2.8% during mid-day trading on Thursday . The company traded as high as $21.49 and last traded at $21.2140. Approximately 16,470,572 shares were traded during trading, a decline of 48% from the average daily volume of 31,543,840 shares. The stock had previously closed at $20.64.

Wall Street Analyst Weigh In

A number of brokerages recently commented on QBTS. Rosenblatt Securities reissued a “buy” rating and issued a $43.00 price objective on shares of D-Wave Quantum in a research note on Thursday, June 11th. Needham & Company LLC reaffirmed a “buy” rating and set a $40.00 target price on shares of D-Wave Quantum in a research report on Tuesday, June 2nd. Roth Capital lifted their price target on D-Wave Quantum from $30.00 to $40.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. Cantor Fitzgerald reiterated an “overweight” rating and issued a $40.00 price target on shares of D-Wave Quantum in a report on Wednesday, May 13th. Finally, B. Riley Financial boosted their price target on D-Wave Quantum from $36.00 to $40.00 and gave the stock a “buy” rating in a research report on Tuesday, June 2nd. Fourteen investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $36.80.

D-Wave Quantum Stock Performance

The firm has a fifty day moving average price of $23.81 and a 200 day moving average price of $22.05. 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 stock has a market cap of $7.85 billion, a PE ratio of -18.77 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 for the quarter, topping the consensus estimate of ($0.08) by $0.03. D-Wave Quantum had a negative return on equity of 44.06% and a negative net margin of 2,957.23%.The firm had revenue of $2.86 million for the quarter, compared to the consensus estimate of $4.19 million. During the same period in the previous year, the business earned ($0.02) EPS. The firm’s revenue for the quarter was down 80.9% on a year-over-year basis. Research analysts forecast that D-Wave Quantum Inc. will post -0.43 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO John M. Markovich sold 200,000 shares of the business’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $25.71, for a total transaction of $5,142,000.00. Following the sale, the chief financial officer owned 1,142,820 shares in the company, valued at approximately $29,381,902.20. The trade was a 14.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, VP Sophie C. Ames sold 23,025 shares of the company’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $18.98, for a total transaction of $437,014.50. Following the transaction, the vice president owned 596,803 shares in the company, valued at approximately $11,327,320.94. This trade represents a 3.71% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 1,363,842 shares of company stock valued at $35,802,656. 1.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. UBS Group AG lifted its stake in shares of D-Wave Quantum by 541.6% during the third quarter. UBS Group AG now owns 12,089,703 shares of the company’s stock worth $298,737,000 after buying an additional 10,205,427 shares during the period. Northwestern Mutual Wealth Management Co. increased its position in shares of D-Wave Quantum by 136,842.4% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,194,866 shares of the company’s stock valued at $83,546,000 after acquiring an additional 3,192,533 shares during the period. Clear Street Group Inc. purchased a new position in D-Wave Quantum in the 3rd quarter worth $75,344,000. Goldman Sachs Group Inc. lifted its position in D-Wave Quantum by 311.6% during the 4th quarter. Goldman Sachs Group Inc. now owns 3,548,013 shares of the company’s stock worth $92,781,000 after acquiring an additional 2,685,980 shares during the period. Finally, Marex Group plc lifted its position in D-Wave Quantum by 74.9% during the 4th quarter. Marex Group plc now owns 4,592,656 shares of the company’s stock worth $120,098,000 after acquiring an additional 1,966,500 shares during the period. Institutional investors and hedge funds 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.