D-Wave Quantum (NASDAQ:QBTS) Stock Falls 10.1% – Here’s What Happened

D-Wave Quantum Inc. (NASDAQ:QBTS)’s share price dropped 10.1% on Wednesday. The stock traded as low as $11.95 and last traded at $12.03. 23,780,223 shares traded hands during mid-day trading, a decline of 10% from the average daily volume of 26,397,203 shares. The stock had previously closed at $13.38.

Trending Headlines about D-Wave Quantum

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

• Positive Sentiment: D-Wave extended its manufacturing partnership with SkyWater Technology through a multi-year agreement. The deal is intended to secure specialized semiconductor fabrication for future superconducting quantum processors, while also incorporating intellectual-property protections and using D-Wave’s technology to improve SkyWater’s manufacturing operations. D-Wave Quantum, SkyWater Extend Quantum Chip Manufacturing Partnership to Include IP Protection
• Positive Sentiment: The agreement provides D-Wave with longer-term access to U.S.-based foundry capacity, potentially supporting the development and production of more advanced quantum systems. The partnership is a commercialization and supply-chain catalyst, although the immediate financial impact was not disclosed. What Does D Wave Quantum Multi Year Manufacturing Deal Change?

Analyst Ratings Changes

Several research firms recently commented on QBTS. Roth Capital reiterated a “buy” rating and issued a $30.00 price target on shares of D-Wave Quantum in a research report on Thursday, August 6th. Wall Street Zen upgraded D-Wave Quantum from a “strong sell” rating to a “sell” rating in a research note on Saturday, August 8th. Weiss Ratings upgraded shares of D-Wave Quantum from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday, August 28th. Benchmark initiated coverage on shares of D-Wave Quantum in a research report on Monday, July 27th. They set a “buy” rating and a $30.00 target price for the company. Finally, Wedbush assumed 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 target on the stock. Thirteen analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $36.27.

D-Wave Quantum Stock Performance

The company has a debt-to-equity ratio of 0.03, a quick ratio of 20.42 and a current ratio of 20.55. The firm has a market cap of $4.45 billion, a price-to-earnings ratio of -16.94 and a beta of 2.18. The stock’s fifty day moving average is $17.58 and its two-hundred day moving average is $19.73.

D-Wave Quantum (NASDAQ:QBTS) last issued its quarterly earnings results 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 return on equity of 26.67% and a negative net margin of 2,001.59%. The business had revenue of $3.08 million during the quarter, compared to the consensus estimate of $4.03 million. During the same quarter last year, the firm posted ($0.08) earnings per share. D-Wave Quantum’s revenue was down 0.6 compared to the same quarter last year. On average, analysts expect that D-Wave Quantum Inc. will post -0.46 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, VP Sophie Ames sold 3,070 shares of the business’s stock in a transaction dated 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 owned 589,009 shares in the company, valued at approximately $9,983,702.55. The trade was a 0.52% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. BlackRock Inc. acquired a new position in D-Wave Quantum in the second quarter valued at about $795,206,000. Bank of America Corp DE bought a new position in shares of D-Wave Quantum in the 2nd quarter valued at about $104,183,000. Van ECK Associates Corp lifted its holdings in D-Wave Quantum by 52.6% during the 2nd quarter. Van ECK Associates Corp now owns 2,339,788 shares of the company’s stock valued at $56,132,000 after purchasing an additional 806,835 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in D-Wave Quantum during the 2nd quarter worth approximately $54,951,000. Finally, Wellington Management Group LLP raised its position in shares of D-Wave Quantum by 372.2% in the second quarter. Wellington Management Group LLP now owns 1,820,070 shares of the company’s stock valued at $43,663,000 after buying an additional 1,434,657 shares in the last quarter. 42.47% of the stock is currently owned by institutional investors.

D-Wave Quantum Company Profile

D-Wave Quantum Inc is a quantum-computing company that develops and delivers quantum systems, software and cloud-based services for commercial, government and research customers. The company focuses on quantum annealing, an approach designed to address complex optimization problems, and is also developing gate-model quantum-computing capabilities.

Its offerings include D-Wave quantum computers, the Leap quantum cloud service, and the Ocean software development kit. Through these products, customers can access quantum hardware, build and test applications, and combine quantum processing with classical computing through hybrid solvers.