D-Wave Quantum (NASDAQ:QBTS) Shares Gap Up – Here’s What Happened

D-Wave Quantum Inc. (NASDAQ:QBTS)’s share price gapped up prior to trading on Tuesday . The stock had previously closed at $16.58, but opened at $17.70. D-Wave Quantum shares last traded at $18.0790, with a volume of 9,177,186 shares.

Key D-Wave Quantum News

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

• Positive Sentiment: D-Wave finalized an agreement with the U.S. Department of Commerce for up to $100 million under the CHIPS and Science Act. The funding and resulting federal minority stake should strengthen D-Wave’s cash runway and support domestic quantum-computing development. D-Wave Quantum Finalizes Up To $100 Mln U.S. Funding Agreement; Shares Rise
• Positive Sentiment: The company issued 7,095,721 shares to the U.S. government as part of the agreement. Although the issuance creates dilution, the transaction provides capital without relying solely on a conventional equity offering and signals strategic federal backing for D-Wave’s technology. D-Wave Issues 7.1M QBTS Shares to U.S. Government Under $100M CHIPS Deal
• Neutral Sentiment: Director John DiLullo sold 1,100 shares worth $19,800 under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by 5.16%, but the preset trading plan makes it a limited signal about management’s current outlook. John DiLullo Insider Trading
• Negative Sentiment: Quantum stocks broadly pulled back as expectations for another Federal Reserve rate move increased. Higher rates typically pressure speculative, high-beta companies such as D-Wave by reducing the value investors assign to distant future growth. Quantum Stocks Fall as Rate-Hike Odds Climb
• Negative Sentiment: Recent analysis continues to highlight D-Wave’s substantial losses, weak revenue conversion, and elevated valuation despite stronger bookings and adoption. These concerns remain significant because the company is not yet profitable and its latest reported revenue missed analyst expectations. Rising Risks Overshadow D-Wave Quantum Booking
• Negative Sentiment: A law firm is investigating potential claims on behalf of D-Wave investors, adding another layer of headline and litigation risk, although no wrongdoing has been established. Pomerantz Investor Alert

Wall Street Analyst Weigh In

Several equities analysts have recently commented on QBTS shares. Wedbush initiated coverage on shares of D-Wave Quantum in a research note on Monday, August 3rd. They set an “outperform” rating and a $40.00 price objective for the company. B. Riley Financial raised their target price on D-Wave Quantum from $36.00 to $40.00 and gave the stock a “buy” rating in a research note on Tuesday, June 2nd. Stifel Nicolaus set a $35.00 price target on D-Wave Quantum in a report on Tuesday, June 2nd. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $40.00 price target on shares of D-Wave Quantum in a research report on Wednesday, May 13th. Finally, Weiss Ratings raised D-Wave Quantum from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday, August 28th. Thirteen analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $36.27.

D-Wave Quantum Trading Down 3.1%

The stock has a market cap of $6.33 billion, a PE ratio of -24.11 and a beta of 2.15. The firm has a 50-day moving average price of $18.92 and a 200-day moving average price of $20.02. The company has a debt-to-equity ratio of 0.03, a quick ratio of 20.42 and a current ratio of 20.55.

D-Wave Quantum (NASDAQ:QBTS) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.10) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.08) by ($0.02). The business had revenue of $3.08 million during the quarter, compared to the consensus estimate of $4.03 million. D-Wave Quantum had a negative net margin of 2,001.59% and a negative return on equity of 26.67%. The business’s revenue was down 0.6 compared to the same quarter last year. During the same period last year, the company posted ($0.08) earnings per share. As a group, equities analysts anticipate that D-Wave Quantum Inc. will post -0.46 EPS for the current fiscal year.

Insider Transactions at D-Wave Quantum

In related news, CFO John M. Markovich sold 200,000 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $25.71, for a total value of $5,142,000.00. Following the transaction, the chief financial officer directly owned 1,142,820 shares of the company’s stock, valued at approximately $29,381,902.20. This trade represents a 14.89% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, VP Sophie C. Ames sold 3,070 shares of D-Wave Quantum stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $16.95, for a total transaction of $52,036.50. Following the transaction, the vice president directly owned 589,009 shares in the company, valued at $9,983,702.55. This represents a 0.52% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 263,731 shares of company stock worth $6,676,339 in the last 90 days. 1.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Fiduciary Financial Advisors purchased a new position in shares of D-Wave Quantum during the 2nd quarter worth about $25,000. Root Financial Partners LLC grew its stake in D-Wave Quantum by 388.0% in the fourth quarter. Root Financial Partners LLC now owns 976 shares of the company’s stock worth $26,000 after purchasing an additional 776 shares in the last quarter. Parallel Advisors LLC increased its stake in shares of D-Wave Quantum by 545.5% during the first quarter. Parallel Advisors LLC now owns 1,788 shares of the company’s stock valued at $26,000 after buying an additional 1,511 shares during the period. Kemnay Advisory Services Inc. bought a new stake in shares of D-Wave Quantum in the fourth quarter valued at about $28,000. Finally, PeakShares LLC purchased a new stake in D-Wave Quantum in the first quarter worth about $29,000. Institutional investors own 42.47% of the company’s stock.

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.