D-Wave Quantum (NASDAQ:QBTS) Sets New 1-Year Low – Time to Sell?

Shares of D-Wave Quantum Inc. (NASDAQ:QBTS) reached a new 52-week low on Wednesday. The company traded as low as $12.62 and last traded at $12.6560, with a volume of 2,784,508 shares trading hands. The stock had previously closed at $13.38.

D-Wave Quantum News Summary

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

• Positive Sentiment: D-Wave extended its partnership with SkyWater Technology through a new multi-year agreement covering specialized semiconductor process development, manufacturing and intellectual-property protection. The arrangement should support future generations of D-Wave’s superconducting quantum systems and may improve production continuity as the company scales its annealing and gate-model platforms. D-Wave Quantum, SkyWater Extend Quantum Chip Manufacturing Partnership to Include IP Protection
• Positive Sentiment: The SkyWater announcement has placed QBTS among quantum-computing stocks attracting renewed attention, with manufacturing partnerships, product development and commercialization initiatives viewed as possible long-term catalysts. However, the reports did not disclose significant near-term revenue or earnings contributions from the agreement. 3 Quantum Computing Stocks in the Limelight After October Deals
• Neutral Sentiment: The Pentagon’s roughly $350 million quantum-computing initiative is supporting sector interest, but current commentary suggests IonQ may capture more of the direct benefit through its relationship with DARPA. The program’s eventual revenue impact for D-Wave remains uncertain. The Pentagon’s $350 Million Quantum Push
• Negative Sentiment: D-Wave shares have remained under pressure alongside IonQ and Rigetti after IonQ announced an all-stock acquisition of cybersecurity company Elisity. The deal raised concerns about valuation and strategic dilution across the already volatile quantum-computing group. IonQ Sinks 9% on All-Stock Elisity Deal
• Negative Sentiment: A securities law firm announced an investigation into potential federal securities-law violations involving D-Wave and encouraged investors with losses to contact it. The announcement does not establish wrongdoing, but it adds headline and litigation risk to QBTS. QBTS Investigation

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the company. Weiss Ratings raised D-Wave Quantum from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, August 28th. Jefferies Financial Group set a $40.00 target price on shares of D-Wave Quantum in a report on Friday, August 7th. Roth Capital reiterated a “buy” rating and issued a $30.00 target price on shares of D-Wave Quantum in a research note on Thursday, August 6th. Wall Street Zen upgraded shares of D-Wave Quantum from a “strong sell” rating to a “sell” rating in a research note on Saturday, August 8th. Finally, Zacks Research cut shares of D-Wave Quantum from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 18th. Thirteen investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $36.27.

D-Wave Quantum Price Performance

The firm has a market capitalization of $4.67 billion, a PE ratio of -17.75 and a beta of 2.18. 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 firm has a 50-day simple moving average of $17.58 and a 200-day simple moving average of $19.73.

D-Wave Quantum (NASDAQ:QBTS) last released its quarterly earnings results on Thursday, August 6th. The company reported ($0.10) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 firm had revenue of $3.08 million for the quarter, compared to the consensus estimate of $4.03 million. During the same quarter in the prior year, the firm earned ($0.08) earnings per share. The company’s revenue for the quarter was down 0.6 compared to the same quarter last year. As a group, equities analysts forecast that D-Wave Quantum Inc. will post -0.46 earnings per share for the current year.

Insider Buying and Selling

In other D-Wave Quantum news, VP Sophie Ames sold 3,070 shares of the company’s stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $16.95, for a total transaction of $52,036.50. Following the completion of the sale, the vice president directly owned 589,009 shares of the company’s stock, valued at approximately $9,983,702.55. This represents a 0.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.30% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of QBTS. BlackRock Inc. bought a new position in shares of D-Wave Quantum in the second quarter worth about $795,206,000. Bank of America Corp DE bought a new position in shares of D-Wave Quantum in the second quarter worth approximately $104,183,000. Van ECK Associates Corp increased its stake in shares of D-Wave Quantum by 52.6% in the second quarter. Van ECK Associates Corp now owns 2,339,788 shares of the company’s stock worth $56,132,000 after purchasing an additional 806,835 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of D-Wave Quantum in the second quarter worth $54,951,000. Finally, Wellington Management Group LLP raised its position in shares of D-Wave Quantum by 372.2% during the 2nd quarter. Wellington Management Group LLP now owns 1,820,070 shares of the company’s stock valued at $43,663,000 after purchasing an additional 1,434,657 shares during the period. Hedge funds and other institutional investors own 42.47% of the company’s stock.

About D-Wave Quantum

D-Wave Quantum Inc is a quantum-computing company that develops and delivers quantum systems, software and cloud-based services for commercial, government and research customers. The company focuses on quantum annealing, an approach designed to address complex optimization problems, and is also developing gate-model quantum-computing capabilities.

Its offerings include D-Wave quantum computers, the Leap quantum cloud service, and the Ocean software development kit. Through these products, customers can access quantum hardware, build and test applications, and combine quantum processing with classical computing through hybrid solvers.