D-Wave Quantum (NYSE:QBTS) Shares Down 4.1% Following Analyst Downgrade

D-Wave Quantum Inc. (NYSE:QBTS)’s stock price was down 4.1% during mid-day trading on Wednesday after Canaccord Genuity Group lowered their price target on the stock from $43.00 to $41.00. Canaccord Genuity Group currently has a buy rating on the stock. D-Wave Quantum traded as low as $20.70 and last traded at $21.4290. Approximately 25,469,446 shares were traded during trading, a decline of 14% from the average daily volume of 29,693,609 shares. The stock had previously closed at $22.35.

A number of other research firms have also issued reports on QBTS. Wall Street Zen lowered D-Wave Quantum from a “hold” rating to a “sell” rating in a report on Saturday, February 7th. Rosenblatt Securities reaffirmed a “buy” rating and set a $43.00 target price on shares of D-Wave Quantum in a report on Wednesday, January 28th. Benchmark reaffirmed a “buy” rating and set a $35.00 target price on shares of D-Wave Quantum in a report on Friday, January 23rd. Cantor Fitzgerald reissued an “overweight” rating and set a $40.00 price objective on shares of D-Wave Quantum in a research note on Wednesday. Finally, Weiss Ratings lowered D-Wave Quantum from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Wednesday, April 29th. Fourteen analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, D-Wave Quantum currently has an average rating of “Moderate Buy” and an average price target of $34.67.

Insider Buying and Selling

In other D-Wave Quantum news, VP Sophie C. Ames sold 3,070 shares of D-Wave Quantum stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $21.35, for a total transaction of $65,544.50. Following the transaction, the vice president owned 643,678 shares of the company’s stock, valued at $13,742,525.30. The trade was a 0.47% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John D. Dilullo sold 8,000 shares of D-Wave Quantum stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $18.01, for a total value of $144,080.00. Following the transaction, the director directly owned 19,803 shares in the company, valued at approximately $356,652.03. This trade represents a 28.77% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 31,776 shares of company stock worth $574,571. Company insiders own 3.20% of the company’s stock.

D-Wave Quantum News Roundup

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

• Positive Sentiment: D-Wave beat earnings expectations, reporting a smaller-than-expected loss of $0.05 per share versus estimates for a $0.08 loss. Earnings report and call materials
• Positive Sentiment: Bookings surged to $33.4 million, up nearly 2,000% year over year, which investors may view as a strong sign of future demand and commercialization momentum. Yahoo Finance article on bookings surge
• Positive Sentiment: Several brokerages reaffirmed bullish views after the report, including Rosenblatt, Cantor Fitzgerald, and Needham, with price targets in the $40-$43 range, signaling continued Wall Street confidence. Brokerage rating updates
• Neutral Sentiment: The company issued a quarterly share disclosure correction, which appears administrative rather than operational, so it is unlikely to be a major stock driver on its own. Share disclosure correction
• Negative Sentiment: Revenue came in at about $2.86 million, well below expectations and down roughly 81% from a year earlier, reinforcing concerns about lumpy sales and uneven near-term execution. Analyst reaction to Q1 results
• Negative Sentiment: Despite better bookings, analysts trimmed forecasts after the report, suggesting some caution remains around the pace of revenue conversion and profitability. Analyst forecast cuts

Institutional Investors Weigh In On D-Wave Quantum

Several institutional investors have recently made changes to their positions in QBTS. Huntington National Bank grew its position in D-Wave Quantum by 17.9% in the third quarter. Huntington National Bank now owns 3,300 shares of the company’s stock valued at $82,000 after acquiring an additional 500 shares during the period. Sigma Planning Corp grew its position in D-Wave Quantum by 3.6% in the fourth quarter. Sigma Planning Corp now owns 16,329 shares of the company’s stock valued at $431,000 after acquiring an additional 560 shares during the period. AlphaStar Capital Management LLC grew its position in D-Wave Quantum by 2.2% in the fourth quarter. AlphaStar Capital Management LLC now owns 27,063 shares of the company’s stock valued at $708,000 after acquiring an additional 592 shares during the period. Noble Wealth Management PBC grew its position in D-Wave Quantum by 6.7% in the fourth quarter. Noble Wealth Management PBC now owns 9,600 shares of the company’s stock valued at $251,000 after acquiring an additional 600 shares during the period. Finally, Thoroughbred Financial Services LLC grew its position in D-Wave Quantum by 0.5% in the fourth quarter. Thoroughbred Financial Services LLC now owns 131,852 shares of the company’s stock valued at $3,447,000 after acquiring an additional 602 shares during the period. 42.47% of the stock is currently owned by institutional investors and hedge funds.

D-Wave Quantum Stock Down 4.1%

The business has a 50-day simple moving average of $17.90 and a two-hundred day simple moving average of $22.80. The stock has a market capitalization of $7.93 billion, a P/E ratio of -19.48 and a beta of 1.95. The company has a quick ratio of 42.25, a current ratio of 42.38 and a debt-to-equity ratio of 0.04.

D-Wave Quantum (NYSE:QBTS) last posted its quarterly earnings data on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, topping analysts’ consensus estimates of ($0.08) by $0.03. The company had revenue of $2.86 million for the quarter, compared to analyst estimates of $4.19 million. D-Wave Quantum had a negative return on equity of 58.58% and a negative net margin of 1,444.10%.The business’s revenue was down 80.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.02) earnings per share. Equities research analysts forecast that D-Wave Quantum Inc. will post -0.44 earnings per share for the current fiscal year.

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.