D-Wave Quantum (NASDAQ:QBTS) Stock Price Down 2.7% – Time to Sell?

D-Wave Quantum Inc. (NASDAQ:QBTS) traded down 2.7% during mid-day trading on Thursday . The stock traded as low as $18.44 and last traded at $18.80. 11,687,213 shares traded hands during trading, a decline of 59% from the average session volume of 28,852,174 shares. The stock had previously closed at $19.32.

Trending Headlines about D-Wave Quantum

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

• Positive Sentiment: D-Wave reported a sharp increase in second-quarter bookings, which rose 1,120% to $36 million. That growth could support the company’s long-term commercial outlook if bookings convert into recognized revenue. D-Wave Quantum vs. Microsoft: Which Is the Better Quantum Computing Stock to Own for the Next 5 Years?
• Positive Sentiment: Some analysts see substantial upside for QBTS, with one analysis citing approximately 71% potential price appreciation. Recent U.S. policy support for quantum technology is also viewed as a sector tailwind. D-Wave Stock: 71% Potential Upside, but Is It Enough to Buy QBTS Now?
• Neutral Sentiment: Investors are increasingly differentiating among D-Wave, IonQ, and Rigetti based on revenue growth and financial strength, while also considering diversified technology and quantum ETFs. Quantum Stocks Are Starting to Choose Sides: Should Investors Do the Same?
• Negative Sentiment: Zacks Research downgraded D-Wave from “strong buy” to “hold,” reducing near-term analyst support for the shares. Zacks Research
• Negative Sentiment: Quantum-computing stocks are being sold as a group, with no new company-specific catalyst identified. A rise in long-term Treasury yields has also encouraged investors to rotate away from speculative, pre-profit technology companies. What’s Behind the Quantum Stock Selloff?
• Negative Sentiment: Valuation remains a key concern: D-Wave has minimal current revenue, weak technical momentum, and recently reported quarterly revenue below expectations and a wider-than-expected loss. Investors will likely focus on whether strong bookings translate into sustained revenue growth.

Analysts Set New Price Targets

QBTS has been the subject of several analyst reports. B. Riley Financial increased their target price on D-Wave Quantum from $36.00 to $40.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. Rosenblatt Securities reiterated a “buy” rating and issued a $43.00 price objective on shares of D-Wave Quantum in a research report on Friday, August 7th. Benchmark assumed coverage on D-Wave Quantum in a research note on Monday, July 27th. They set a “buy” rating and a $30.00 price objective for the company. Canaccord Genuity Group set a $35.00 target price on shares of D-Wave Quantum in a research note on Thursday, August 6th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $40.00 price target on shares of D-Wave Quantum in a report on Tuesday, June 2nd. Twelve equities research 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’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $36.36.

D-Wave Quantum Stock Down 2.7%

The company has a debt-to-equity ratio of 0.03, a current ratio of 20.55 and a quick ratio of 20.42. The firm has a market cap of $6.95 billion, a P/E ratio of -26.48 and a beta of 2.15. The stock’s 50 day simple moving average is $20.78 and its two-hundred day simple moving average is $20.25.

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). D-Wave Quantum had a negative net margin of 2,001.59% and a negative return on equity of 26.67%. The business had revenue of $3.08 million during the quarter, compared to the consensus estimate of $4.03 million. During the same period last year, the company posted ($0.08) earnings per share. The business’s revenue was down 0.6 compared to the same quarter last year. As a group, research analysts forecast that D-Wave Quantum Inc. will post -0.46 earnings per share for the current year.

Insider Transactions at D-Wave Quantum

In related news, CEO Alan E. Baratz sold 687,627 shares of the stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $26.13, for a total value of $17,967,693.51. Following the completion of the sale, the chief executive officer directly owned 3,299,771 shares of the company’s stock, valued at approximately $86,223,016.23. This represents a 17.25% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Rohit Ghai sold 13,518 shares of the firm’s stock in a transaction 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 sale, the director owned 23,617 shares in the company, valued at $623,724.97. The trade was a 36.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 1,340,817 shares of company stock worth $35,352,133. 1.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On D-Wave Quantum

A number of institutional investors have recently bought and sold shares of the business. World Investment Advisors boosted its stake in D-Wave Quantum by 195.7% in the 4th quarter. World Investment Advisors now owns 41,691 shares of the company’s stock worth $1,090,000 after purchasing an additional 27,592 shares during the period. Allspring Global Investments Holdings LLC raised its position in shares of D-Wave Quantum by 319.3% during the first quarter. Allspring Global Investments Holdings LLC now owns 98,747 shares of the company’s stock valued at $1,353,000 after buying an additional 75,198 shares during the last quarter. Clear Street Group Inc. raised its position in shares of D-Wave Quantum by 40.4% during the fourth quarter. Clear Street Group Inc. now owns 4,281,254 shares of the company’s stock valued at $111,955,000 after buying an additional 1,232,106 shares during the last quarter. Cibc World Market Inc. lifted its holdings in shares of D-Wave Quantum by 295.0% in the fourth quarter. Cibc World Market Inc. now owns 54,760 shares of the company’s stock worth $1,432,000 after buying an additional 40,897 shares in the last quarter. Finally, M&T Bank Corp purchased a new position in shares of D-Wave Quantum in the fourth quarter worth $1,185,000. Hedge funds and other 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.