BMO Capital Markets Upgrades D-Wave Quantum (NASDAQ:QBTS) to Strong-Buy

D-Wave Quantum (NASDAQ:QBTS) was upgraded by investment analysts at BMO Capital Markets to a “strong-buy” rating in a report released on Thursday,Zacks.com reports.

Other research analysts also recently issued research reports about the stock. Rosenblatt Securities reaffirmed a “buy” rating and issued a $43.00 price target on shares of D-Wave Quantum in a report on Friday, August 7th. Cantor Fitzgerald reissued an “overweight” rating and set a $40.00 price objective on shares of D-Wave Quantum in a research note on Wednesday, May 13th. Wall Street Zen upgraded D-Wave Quantum from a “strong sell” rating to a “sell” rating in a research report on Saturday, August 8th. Benchmark assumed coverage on D-Wave Quantum in a research note on Monday, July 27th. They issued a “buy” rating and a $30.00 price objective for the company. Finally, Stifel Nicolaus set a $35.00 target price on D-Wave Quantum in a report on Tuesday, June 2nd. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $36.27.

D-Wave Quantum Price Performance

D-Wave Quantum stock opened at $20.39 on Thursday. The company has a market cap of $7.54 billion, a price-to-earnings ratio of -28.72 and a beta of 2.15. The firm’s fifty day moving average is $20.62 and its 200 day moving average is $20.24. The company has a quick ratio of 20.42, a current ratio of 20.55 and a debt-to-equity ratio of 0.03. D-Wave Quantum has a 52-week low of $12.75 and a 52-week high of $46.75.

D-Wave Quantum (NASDAQ:QBTS) last released its quarterly earnings data 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 net margin of 2,001.59% and a negative return on equity of 26.67%. The business had revenue of $3.08 million for the quarter, compared to the consensus estimate of $4.03 million. During the same quarter last year, the business earned ($0.08) EPS. D-Wave Quantum’s revenue for the quarter was down 0.6 compared to the same quarter last year. Sell-side analysts forecast that D-Wave Quantum 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 D-Wave Quantum stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $25.71, for a total transaction of $5,142,000.00. Following the completion of the transaction, the chief financial officer directly owned 1,142,820 shares of the company’s stock, valued at approximately $29,381,902.20. The trade was a 14.89% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Rohit Ghai sold 13,518 shares of D-Wave Quantum stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $26.41, for a total transaction of $357,010.38. Following the transaction, the director directly owned 23,617 shares of the company’s stock, valued at approximately $623,724.97. This represents a 36.40% decrease in their ownership of the stock. 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. In the last ninety days, insiders have sold 1,012,065 shares of company stock worth $26,245,703. 1.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the business. BlackRock Inc. bought a new position in shares of D-Wave Quantum during the second quarter valued at approximately $795,206,000. UBS Group AG raised its holdings in shares of D-Wave Quantum by 541.6% in the third quarter. UBS Group AG now owns 12,089,703 shares of the company’s stock worth $298,737,000 after buying an additional 10,205,427 shares during the period. Geode Capital Management LLC lifted its stake in shares of D-Wave Quantum by 11.5% during the 4th quarter. Geode Capital Management LLC now owns 8,394,726 shares of the company’s stock worth $220,085,000 after acquiring an additional 866,405 shares during the last quarter. State Street Corp lifted its stake in shares of D-Wave Quantum by 5.3% during the 4th quarter. State Street Corp now owns 7,707,085 shares of the company’s stock worth $201,540,000 after acquiring an additional 385,809 shares during the last quarter. Finally, Marex Group plc boosted its holdings in D-Wave Quantum by 74.9% during the 4th quarter. Marex Group plc now owns 4,592,656 shares of the company’s stock valued at $120,098,000 after acquiring an additional 1,966,500 shares during the period. Hedge funds and other institutional investors own 42.47% of the company’s stock.

D-Wave Quantum News Roundup

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

• Positive Sentiment: BMO initiated coverage with an Outperform rating and a $35 price target, implying roughly 85%–86% upside from recent levels. The firm highlighted D-Wave’s commercial revenue potential, providing a significant catalyst for the stock. D-Wave Quantum Stock Climbs as BMO Turns Bullish
• Positive Sentiment: NTT DOCOMO deployed a second production application powered by D-Wave to improve mobile-network planning and efficiency. The deployment expands the relationship beyond pilot projects and offers evidence that D-Wave’s technology is being used in commercial telecom operations. D-Wave Lands Second Production Telecom Application
• Positive Sentiment: D-Wave’s order and contracted-revenue indicators remain strong. First-half bookings reportedly surged 1,120% year over year to $35.5 million, while remaining performance obligations rose 668% to $40.7 million. Nearly $23 million of contracted revenue could be recognized within 12 months, and commercial customers generated 67.7% of first-half revenue. D-Wave: Demand Is Outrunning Revenue
• Neutral Sentiment: Analysts and market commentary are increasingly focused on whether D-Wave can convert customer interest, bookings and production applications into sustained revenue and eventual profitability. Some quantum stocks continue to attract attention for their growth prospects despite a tougher market. Quantum Stocks Face Reality Check
• Negative Sentiment: Valuation remains a concern. After approximately a 15-fold three-year gain, D-Wave screens as expensive on valuation measures, raising the risk that substantial future progress is already reflected in the share price. D-Wave Quantum Stock Looks Expensive
• Negative Sentiment: Quantum-computing stocks have recently faced broad sector selling, while Zacks Research downgraded D-Wave from “Strong Buy” to “Hold.” These factors could limit gains even as company-specific news improves sentiment. Quantum Stock Selloff

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.