D-Wave Quantum (NYSE:QBTS) Shares Gap Up – Time to Buy?

D-Wave Quantum Inc. (NYSE:QBTS)’s stock price gapped up before the market opened on Thursday . The stock had previously closed at $19.30, but opened at $21.76. D-Wave Quantum shares last traded at $24.4680, with a volume of 29,091,885 shares.

Key Stories Impacting D-Wave Quantum

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

• Positive Sentiment: D-Wave signed a Letter of Intent with the U.S. Department of Commerce for up to $100 million in proposed CHIPS and Science Act funding, a potential catalyst that could support product development, scaling, and longer-term revenue growth. Article Title
• Positive Sentiment: Quantum-computing stocks are broadly breaking out, with QBTS among the leaders, as investors rotate into the sector despite weakness in other tech names. Article Title
• Positive Sentiment: Unusually heavy call-option buying suggests traders are positioning for more upside in QBTS, reinforcing the stock’s momentum. Article Title
• Positive Sentiment: Analyst commentary continues to highlight QBTS as a momentum name in quantum computing, with some recent coverage pointing to significant potential upside if adoption continues. Article Title
• Neutral Sentiment: Recent articles also note that D-Wave has been posting strong revenue growth and record bookings, but profitability remains limited, which keeps longer-term fundamentals mixed. Article Title

Analyst Ratings Changes

Several research analysts have recently issued reports on QBTS shares. Roth Mkm lowered their price objective on D-Wave Quantum from $40.00 to $30.00 and set a “buy” rating for the company in a research report on Friday, February 27th. Jefferies Financial Group reaffirmed a “buy” rating on shares of D-Wave Quantum in a research report on Tuesday, May 12th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $40.00 price objective on shares of D-Wave Quantum in a research report on Wednesday, May 13th. Needham & Company LLC reaffirmed a “buy” rating and set a $40.00 price objective on shares of D-Wave Quantum in a research report on Wednesday, May 13th. Finally, Mizuho lowered their price objective on D-Wave Quantum from $31.00 to $29.00 and set an “outperform” rating for the company in a research report on Wednesday, May 13th. Fourteen 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’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $34.67.

D-Wave Quantum Trading Up 25.0%

The stock has a market capitalization of $8.92 billion, a price-to-earnings ratio of -21.46 and a beta of 1.95. 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 business has a 50-day moving average of $18.06 and a 200-day moving average of $22.24.

D-Wave Quantum (NYSE:QBTS) last announced its earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.08) by $0.03. The firm had revenue of $2.86 million during the quarter, compared to analysts’ expectations of $4.19 million. D-Wave Quantum had a negative return on equity of 44.06% and a negative net margin of 2,957.23%.The business’s revenue was down 80.9% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.02) EPS. As a group, research analysts forecast that D-Wave Quantum Inc. will post -0.44 EPS for the current year.

Insider Transactions at D-Wave Quantum

In related news, Director John D. Dilullo sold 8,000 shares of the company’s stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $18.01, for a total value of $144,080.00. Following the completion of the sale, the director directly owned 19,803 shares of the company’s stock, valued at $356,652.03. This represents a 28.77% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Rohit Ghai sold 10,000 shares of the company’s stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $17.62, for a total value of $176,200.00. Following the completion of the sale, the director directly owned 27,778 shares of the company’s stock, valued at approximately $489,448.36. This trade represents a 26.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 31,776 shares of company stock valued at $574,571 in the last 90 days. Company insiders own 3.20% of the company’s stock.

Institutional Trading of D-Wave Quantum

A number of large investors have recently made changes to their positions in QBTS. Vanguard Group Inc. lifted its position in D-Wave Quantum by 41.2% during the 3rd quarter. Vanguard Group Inc. now owns 38,454,869 shares of the company’s stock worth $950,220,000 after acquiring an additional 11,218,255 shares during the period. UBS Group AG lifted its position in D-Wave Quantum by 541.6% during the 3rd quarter. UBS Group AG now owns 12,089,703 shares of the company’s stock worth $298,737,000 after acquiring an additional 10,205,427 shares during the period. Geode Capital Management LLC lifted its position in D-Wave Quantum by 11.5% during the 4th quarter. Geode Capital Management LLC now owns 8,394,726 shares of the company’s stock worth $220,085,000 after acquiring an additional 866,405 shares during the period. State Street Corp lifted its position in D-Wave Quantum by 5.3% during the 4th quarter. State Street Corp now owns 7,707,085 shares of the company’s stock worth $201,540,000 after acquiring an additional 385,809 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. 42.47% of the stock is owned by institutional investors and hedge funds.

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.