D-Wave Quantum (NYSE:QBTS) Trading Down 2% – Here’s Why

D-Wave Quantum Inc. (NYSE:QBTS) shares fell 2% during mid-day trading on Wednesday . The company traded as low as $23.06 and last traded at $23.52. Approximately 22,809,508 shares traded hands during trading, a decline of 29% from the average daily volume of 32,098,967 shares. The stock had previously closed at $23.99.

Analysts Set New Price Targets

QBTS has been the topic of a number of analyst reports. Mizuho lifted their price objective on shares of D-Wave Quantum from $29.00 to $35.00 and gave the company an “outperform” rating in a research note on Monday, June 15th. Weiss Ratings raised D-Wave Quantum from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, June 23rd. Roth Mkm lifted their price target on shares of 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 restated an “overweight” rating and set a $40.00 price objective on shares of D-Wave Quantum in a research note on Wednesday, May 13th. Finally, Needham & Company LLC restated a “buy” rating and issued a $40.00 target price on shares of D-Wave Quantum in a research report on Tuesday, June 2nd. Fourteen analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $36.80.

D-Wave Quantum Trading Down 0.0%

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 firm has a market capitalization of $8.33 billion, a P/E ratio of -19.93 and a beta of 2.11. The firm has a 50 day moving average price of $23.64 and a two-hundred day moving average price of $22.13.

D-Wave Quantum (NYSE:QBTS) last released its quarterly 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. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The business had revenue of $2.86 million for the quarter, compared to analyst estimates of $4.19 million. During the same quarter in the previous year, the business earned ($0.02) earnings per share. The firm’s revenue was down 80.9% compared to the same quarter last year. On average, equities research analysts expect that D-Wave Quantum Inc. will post -0.43 EPS for the current fiscal year.

Insider Activity at D-Wave Quantum

In other news, Director John D. Dilullo sold 7,850 shares of the company’s stock in a transaction on Friday, June 5th. The shares were sold at an average price of $24.43, for a total value of $191,775.50. Following the transaction, the director directly owned 21,310 shares of the company’s stock, valued at approximately $520,603.30. This represents a 26.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Markovich sold 328,752 shares of the company’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $27.70, for a total value of $9,106,430.40. Following the completion of the transaction, the chief financial officer directly owned 1,442,820 shares in the company, valued at approximately $39,966,114. The trade was a 18.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 1,363,842 shares of company stock worth $35,802,656. Company insiders own 1.30% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. UBS Group AG raised its position in shares of D-Wave Quantum by 541.6% in the third quarter. UBS Group AG now owns 12,089,703 shares of the company’s stock valued at $298,737,000 after purchasing an additional 10,205,427 shares during the period. Northwestern Mutual Wealth Management Co. raised its position in shares of D-Wave Quantum by 136,842.4% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,194,866 shares of the company’s stock valued at $83,546,000 after buying an additional 3,192,533 shares during the last quarter. Clear Street Group Inc. bought a new stake in shares of D-Wave Quantum in the 3rd quarter worth approximately $75,344,000. Goldman Sachs Group Inc. lifted its position in D-Wave Quantum by 311.6% in the fourth quarter. Goldman Sachs Group Inc. now owns 3,548,013 shares of the company’s stock worth $92,781,000 after purchasing an additional 2,685,980 shares during the period. Finally, Marex Group plc lifted its holdings in shares of 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 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.