D-Wave Quantum (NYSE:QBTS) Trading 2.5% Higher – Should You Buy?

D-Wave Quantum Inc. (NYSE:QBTS) shares rose 2.5% during mid-day trading on Thursday . The company traded as high as $24.41 and last traded at $23.8420. Approximately 24,889,077 shares traded hands during mid-day trading, a decline of 23% from the average daily volume of 32,342,025 shares. The stock had previously closed at $23.25.

More D-Wave Quantum News

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

• Positive Sentiment: B. Riley reaffirmed its Buy rating on D-Wave Quantum and raised its price target to $40 from $36, reinforcing investor confidence in the company’s quantum-computing growth story. B. Riley is Bullish on D-Wave Quantum Inc. (QBTS)
• Positive Sentiment: Other recent coverage continues to point to meaningful upside for QBTS as quantum computing attracts fresh investor attention and capital, which can help keep sentiment constructive. 2 Quantum Stocks With 45%+ Upside in June as OpenAI, SpaceX Eye IPO
• Neutral Sentiment: Analyst-follow-up articles highlighted that D-Wave has outperformed since its last earnings report, reflecting ongoing speculation around its next catalysts rather than any new operational update. Why Is D-WAVE QUANTUM (QBTS) Up 8.4% Since Last Earnings Report?
• Neutral Sentiment: D-Wave also remains in the spotlight for strategic developments, including CHIPS-related funding and board changes, which support the long-term narrative but do not provide immediate financial results. Is D-Wave Quantum’s (QBTS) CHIPS Funding And Board Shift Reframing Its Commercial Quantum Strategy?
• Negative Sentiment: CEO Alan Baratz sold 687,627 shares, a sizable insider sale that may raise questions about near-term confidence in the stock’s valuation. Alan Baratz Sells 687,627 Shares of D-Wave Quantum (NYSE:QBTS) Stock
• Negative Sentiment: Additional commentary warns that QBTS may have become stretched after its rally, with some investors rotating out of high-risk growth names and questioning whether current valuations already reflect a lot of future success. D-Wave Quantum Plummeted Today — Is the Stock a Buy Right Now?

Wall Street Analysts Forecast Growth

A number of brokerages have commented on QBTS. Mizuho decreased their price target on shares of D-Wave Quantum from $31.00 to $29.00 and set an “outperform” rating for the company in a research note on Wednesday, May 13th. Zacks Research upgraded shares of D-Wave Quantum from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Northland Securities assumed coverage on shares of D-Wave Quantum in a research report on Monday, April 20th. They set a “market perform” rating and a $22.00 target price for the company. Roth Mkm upped their target price on shares of D-Wave Quantum from $30.00 to $40.00 and gave the stock a “buy” rating in a report on Tuesday, June 2nd. Finally, Stifel Nicolaus set a $35.00 price target on D-Wave Quantum in a research note on Tuesday, June 2nd. Fourteen equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, D-Wave Quantum currently has a consensus rating of “Moderate Buy” and an average target price of $36.40.

D-Wave Quantum Price Performance

The company has a market capitalization of $8.82 billion, a P/E ratio of -21.10 and a beta of 2.05. The business’s 50-day moving average is $21.32 and its two-hundred day moving average is $22.24. The company has a quick ratio of 21.31, a current ratio of 21.41 and a debt-to-equity ratio of 0.03.

D-Wave Quantum (NYSE:QBTS) last posted its earnings results on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, topping the consensus estimate of ($0.08) by $0.03. The firm had revenue of $2.86 million for the quarter, compared to analysts’ expectations of $4.19 million. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The company’s quarterly revenue was down 80.9% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.02) EPS. As a group, analysts predict that D-Wave Quantum Inc. will post -0.43 earnings per share for the current year.

Insider Transactions at D-Wave Quantum

In related news, Director John D. Dilullo sold 7,850 shares of the stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $24.43, for a total transaction of $191,775.50. Following the completion of the transaction, the director owned 21,310 shares in the company, valued at approximately $520,603.30. This 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, CFO John M. Markovich sold 328,752 shares of D-Wave Quantum stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $27.70, for a total transaction of $9,106,430.40. Following the completion of the sale, the chief financial officer directly owned 1,442,820 shares in the company, valued at approximately $39,966,114. This represents a 18.56% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 1,124,987 shares of company stock worth $29,563,100. Company insiders own 1.30% of the company’s stock.

Institutional Investors Weigh In On D-Wave Quantum

Several large investors have recently modified their holdings of the stock. Root Financial Partners LLC raised its holdings in shares of D-Wave Quantum by 388.0% in 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 period. Parallel Advisors LLC grew its holdings in 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 purchasing an additional 1,511 shares during the period. Kemnay Advisory Services Inc. bought a new position in D-Wave Quantum during the fourth quarter valued at $28,000. PeakShares LLC purchased a new stake in D-Wave Quantum in the first quarter worth $29,000. Finally, EverSource Wealth Advisors LLC increased its position in D-Wave Quantum by 267.7% in the fourth 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. Hedge funds and other 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.