D-Wave Quantum (NASDAQ:QBTS) Trading 3.4% Higher – Here’s Why

D-Wave Quantum Inc. (NASDAQ:QBTS)’s share price was up 3.4% during trading on Monday . The company traded as high as $17.92 and last traded at $17.70. 14,781,504 shares changed hands during mid-day trading, a decline of 46% from the average session volume of 27,381,014 shares. The stock had previously closed at $17.11.

Key Stories Impacting D-Wave Quantum

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

• Positive Sentiment: Enterprise partnership supports commercialization: D-Wave and CGI announced a strategic partnership to develop practical quantum-computing applications for logistics, transportation, retail and other industries. CGI’s consulting and industry expertise could help D-Wave convert its technology into enterprise use cases and future revenue. CGI and D-Wave Quantum partner to advance enterprise quantum adoption
• Positive Sentiment: Quantum-sector enthusiasm is lifting sentiment: Shares across the quantum-computing industry increased after IonQ publicized a quantum-computing breakthrough involving AI-assisted circuit design. The move reflects renewed investor interest in the sector, although the direct financial benefit to D-Wave remains uncertain. Here’s why quantum computing stocks are rising
• Neutral Sentiment: Government funding improves resources but not necessarily earnings: D-Wave reportedly received $100 million from the U.S. government, which could support research and development. However, the company is burning roughly $37 million per quarter, so investors are weighing the funding against ongoing cash needs and a still-demanding valuation. D-Wave Quantum government funding and valuation
• Neutral Sentiment: Board appointment signals an enterprise-readiness push: Former BNP Paribas technology executive Bernard Gavgani joined D-Wave’s board and Cybersecurity Committee. His experience may strengthen governance and enterprise credibility, but the appointment does not immediately change the company’s financial outlook. D-Wave cybersecurity board hire
• Negative Sentiment: Valuation and execution remain major risks: Analysts note that D-Wave’s revenue has generally remained in the roughly $2 million-to-$4 million quarterly range, while losses and operating expenses remain high. Reports also highlight insider selling, elevated expectations and questions about whether commercial growth justifies the stock’s valuation. D-Wave Quantum revenue concerns
• Negative Sentiment: Investor investigations add headline risk: Several law firms are investigating potential securities-law violations involving D-Wave, which could increase uncertainty and weigh on sentiment even though no wrongdoing has been established. Pomerantz investor alert

Analyst Ratings Changes

Several research firms have weighed in on QBTS. BMO Capital Markets began coverage on D-Wave Quantum in a research note on Thursday, August 20th. They set an “outperform” rating and a $35.00 price target on the stock. Wall Street Zen upgraded shares of D-Wave Quantum from a “strong sell” rating to a “sell” rating in a research report on Saturday, August 8th. Zacks Research cut shares of D-Wave Quantum from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 18th. Mizuho boosted their price target on shares of D-Wave Quantum from $29.00 to $35.00 and gave the stock an “outperform” rating in a report on Monday, June 15th. Finally, Stifel Nicolaus set a $35.00 price objective on shares of D-Wave Quantum in a report on Tuesday, June 2nd. Thirteen research 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.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $36.27.

D-Wave Quantum Price Performance

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 stock has a 50 day moving average price of $18.21 and a 200-day moving average price of $19.90. The stock has a market capitalization of $6.52 billion, a price-to-earnings ratio of -24.62 and a beta of 2.15.

D-Wave Quantum (NASDAQ:QBTS) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.10) EPS for the quarter, missing the consensus estimate 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 during the quarter, compared to analyst estimates of $4.03 million. During the same period in the prior year, the company posted ($0.08) earnings per share. The firm’s revenue for the quarter was down 0.6 compared to the same quarter last year. On average, analysts forecast that D-Wave Quantum Inc. will post -0.46 earnings per share for the current year.

Insider Activity at D-Wave Quantum

In other news, VP Sophie Ames sold 3,070 shares of the firm’s stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $16.95, for a total value of $52,036.50. Following the transaction, the vice president directly owned 589,009 shares of the company’s stock, valued at approximately $9,983,702.55. This trade represents a 0.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.30% of the stock is owned by company insiders.

Institutional Trading of D-Wave Quantum

Hedge funds have recently bought and sold shares of the business. BlackRock Inc. purchased a new stake in shares of D-Wave Quantum in the second quarter valued at approximately $795,206,000. Geode Capital Management LLC lifted its position in D-Wave Quantum by 11.5% during the fourth quarter. Geode Capital Management LLC now owns 8,394,726 shares of the company’s stock worth $220,085,000 after buying an additional 866,405 shares in the last quarter. Bank of America Corp DE acquired a new position in D-Wave Quantum during the second quarter worth $104,183,000. Clear Street Group Inc. boosted its stake in D-Wave Quantum by 40.4% during the fourth quarter. Clear Street Group Inc. now owns 4,281,254 shares of the company’s stock worth $111,955,000 after buying an additional 1,232,106 shares during the last quarter. Finally, Goldman Sachs Group Inc. grew its holdings in D-Wave Quantum by 311.6% in the 4th quarter. Goldman Sachs Group Inc. now owns 3,548,013 shares of the company’s stock valued at $92,781,000 after buying an additional 2,685,980 shares in the last quarter. Institutional investors and hedge funds own 42.47% of the company’s stock.

D-Wave Quantum Company Profile

D-Wave Quantum Inc develops quantum computing systems, software, and services for commercial, government, and research customers. The company is best known for its quantum annealing technology, which is designed to help solve complex optimization problems involving areas such as logistics, scheduling, manufacturing, artificial intelligence, and financial modeling.

D-Wave also develops gate-model quantum computing technology and provides access to its systems through cloud-based services, including the Leap quantum application environment.