D-Wave Quantum (NYSE:QBTS) Trading Up 9.3% – Still a Buy?

D-Wave Quantum Inc. (NYSE:QBTS)’s stock price was up 9.3% during trading on Tuesday . The company traded as high as $21.90 and last traded at $21.83. Approximately 23,499,396 shares were traded during mid-day trading, a decline of 22% from the average session volume of 30,071,668 shares. The stock had previously closed at $19.98.

D-Wave Quantum News Summary

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

• Positive Sentiment: Customer bookings surged approximately 1,120% year over year, while D-Wave reported a backlog of about $40.7 million. The figures suggest improving commercial demand, although the revenue has not yet been recognized. Why D-Wave Quantum Stock Is Sliding After Earnings Reveal a 1,120% Surge in Bookings
• Positive Sentiment: D-Wave recently announced a Nature-published hardware breakthrough involving a high-fidelity, two-qubit entangling gate. The research could strengthen its path toward fault-tolerant, gate-model quantum computing and support its longer-term technology narrative. D-Wave Demonstrates Major Hardware Breakthrough
• Neutral Sentiment: The company operates across both annealing and gate-model quantum systems, software and services, giving investors exposure to multiple potential quantum-computing markets. However, the commercial impact of the newer technology remains uncertain. D-Wave’s Quantum Breakthrough Adds a Tailwind
• Negative Sentiment: Second-quarter revenue was $3.08 million, below analyst estimates of roughly $4.03 million to $4.08 million. The company reported a loss of $0.13 per share, wider than the expected $0.08 loss, though it improved from a $0.55 loss a year earlier. D-Wave Q2 Results
• Negative Sentiment: D-Wave continues to operate with substantial losses, including a reported negative net margin of roughly 2,957%. Investors appear concerned that bookings and backlog are not translating into current revenue quickly enough to justify the stock’s elevated valuation.

Wall Street Analyst Weigh In

Several analysts have recently commented on QBTS shares. Canaccord Genuity Group set a $35.00 target price on shares of D-Wave Quantum in a research note on Thursday. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $40.00 price objective on shares of D-Wave Quantum in a report on Wednesday, May 13th. Weiss Ratings raised D-Wave Quantum from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, June 23rd. Zacks Research raised shares of D-Wave Quantum from a “hold” rating to a “strong-buy” rating in a report on Monday, July 20th. Finally, Benchmark began coverage on D-Wave Quantum in a research report on Monday, July 27th. They issued a “buy” rating and a $30.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $35.73.

D-Wave Quantum Stock Performance

The company has a current ratio of 21.41, a quick ratio of 21.31 and a debt-to-equity ratio of 0.03. The company has a market cap of $7.18 billion, a price-to-earnings ratio of -17.18 and a beta of 2.15. The stock’s 50 day moving average price is $22.13 and its 200 day moving average price is $20.65.

D-Wave Quantum (NYSE:QBTS) last announced its quarterly earnings data on Thursday, August 6th. The company reported ($0.13) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.08) by ($0.05). D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The company had revenue of $3.08 million for the quarter, compared to analysts’ expectations of $4.03 million. On average, analysts expect that D-Wave Quantum Inc. will post -0.42 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 stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $24.43, for a total value of $191,775.50. Following the completion of the sale, the director owned 21,310 shares in the company, valued at approximately $520,603.30. This trade represents a 26.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Rohit Ghai sold 13,518 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $26.41, for a total transaction of $357,010.38. Following the completion of the sale, the director directly owned 23,617 shares of the company’s stock, valued at $623,724.97. This trade represents a 36.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,363,842 shares of company stock valued at $35,789,148 over the last quarter. Company insiders own 1.30% of the company’s stock.

Institutional Trading of D-Wave Quantum

Several large investors have recently modified their holdings of QBTS. Root Financial Partners LLC increased its holdings in D-Wave Quantum by 388.0% during the 4th quarter. Root Financial Partners LLC now owns 976 shares of the company’s stock worth $26,000 after purchasing an additional 776 shares during the last quarter. Parallel Advisors LLC boosted its holdings in D-Wave Quantum by 545.5% in the first quarter. Parallel Advisors LLC now owns 1,788 shares of the company’s stock worth $26,000 after purchasing an additional 1,511 shares during the period. Kemnay Advisory Services Inc. bought a new stake in shares of D-Wave Quantum during the 4th quarter valued at about $28,000. PeakShares LLC bought a new position in shares of D-Wave Quantum during the first quarter valued at approximately $29,000. Finally, EverSource Wealth Advisors LLC grew its stake in D-Wave Quantum by 267.7% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company’s stock worth $30,000 after buying an additional 838 shares during the last quarter. 42.47% of the stock is currently owned by institutional investors and hedge funds.

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.