D-Wave Quantum (NASDAQ:QBTS) Stock Price Down 9.5% – Here’s Why

Shares of D-Wave Quantum Inc. (NASDAQ:QBTS) traded down 9.5% during trading on Wednesday . The company traded as low as $17.45 and last traded at $17.51. Approximately 25,876,598 shares traded hands during mid-day trading, a decline of 10% from the average session volume of 28,620,412 shares. The stock had previously closed at $19.35.

Analyst Upgrades and Downgrades

QBTS has been the subject of a number of analyst reports. Stifel Nicolaus set a $35.00 price objective on shares of D-Wave Quantum in a research report on Tuesday, June 2nd. Weiss Ratings cut shares of D-Wave Quantum from a “sell (d-)” rating to a “sell (e+)” rating in a report on Tuesday, August 11th. Mizuho raised their target price on shares of D-Wave Quantum from $29.00 to $35.00 and gave the company an “outperform” rating in a research note on Monday, June 15th. Canaccord Genuity Group set a $35.00 price target on D-Wave Quantum in a report on Thursday, August 6th. Finally, Benchmark started coverage on D-Wave Quantum in a research report on Monday, July 27th. They set a “buy” rating and a $30.00 price target on the stock. Thirteen investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $36.27.

D-Wave Quantum Stock Up 2.2%

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 fifty day simple moving average of $20.13 and a 200-day simple moving average of $20.19. The firm has a market cap of $6.62 billion, a price-to-earnings ratio of -25.21 and a beta of 2.15.

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). The company had revenue of $3.08 million during the quarter, compared to analyst estimates 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%. D-Wave Quantum’s revenue for the quarter was down 0.6 on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.08) earnings per share. As a group, sell-side analysts expect that D-Wave Quantum Inc. will post -0.46 EPS for the current year.

Insiders Place Their Bets

In other D-Wave Quantum news, VP Sophie C. Ames sold 3,070 shares of the firm’s 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 completion of the sale, the vice president directly owned 589,009 shares in the company, valued at $9,983,702.55. This trade represents a 0.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Alan E. Baratz sold 687,627 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $26.13, for a total transaction of $17,967,693.51. Following the sale, the chief executive officer owned 3,299,771 shares of the company’s stock, valued at $86,223,016.23. This trade represents a 17.25% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,012,065 shares of company stock worth $26,245,703 in the last 90 days. Corporate insiders own 1.30% of the company’s stock.

Hedge Funds Weigh In On D-Wave Quantum

Institutional investors and hedge funds have recently made changes to their positions in the company. Root Financial Partners LLC lifted its holdings in D-Wave Quantum by 388.0% during 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 last quarter. Fiduciary Financial Advisors acquired a new position in D-Wave Quantum in the 2nd quarter valued at $25,000. Kemnay Advisory Services Inc. acquired a new position in D-Wave Quantum in the 4th quarter valued at $28,000. EverSource Wealth Advisors LLC increased its position in D-Wave Quantum by 267.7% during the 4th 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 period. Finally, Mcguire Capital Advisors Inc. bought a new position in D-Wave Quantum during the 4th quarter worth $31,000. Institutional investors and hedge funds 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.