D-Wave Quantum (NASDAQ:QBTS) Shares Down 5.7% – Should You Sell?

Shares of D-Wave Quantum Inc. (NASDAQ:QBTS) dropped 5.7% during mid-day trading on Monday. The stock traded as low as $13.73 and last traded at $13.74. 13,895,092 shares traded hands during mid-day trading, a decline of 48% from the average daily volume of 26,485,088 shares. The stock had previously closed at $14.57.

Analysts Set New Price Targets

Several analysts have commented on QBTS shares. 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 raised D-Wave Quantum from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, August 28th. Wedbush started coverage on D-Wave Quantum in a research note on Monday, August 3rd. They issued an “outperform” rating and a $40.00 price target for the company. Jefferies Financial Group set a $40.00 price target on D-Wave Quantum in a report on Friday, August 7th. Finally, Mizuho upped their price target on D-Wave Quantum from $29.00 to $35.00 and gave the company an “outperform” rating in a report on Monday, June 15th. Thirteen 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. Based on data from MarketBeat.com, D-Wave Quantum has a consensus rating of “Moderate Buy” and a consensus price target of $36.27.

D-Wave Quantum Stock Performance

The business’s fifty day moving average price is $17.87 and its 200-day moving average price is $19.76. The stock has a market cap of $5.08 billion, a PE ratio of -19.35 and a beta of 2.18. The company has a debt-to-equity ratio of 0.03, a quick ratio of 20.42 and a current ratio of 20.55.

D-Wave Quantum (NASDAQ:QBTS) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.10) earnings per share 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 company had revenue of $3.08 million for the quarter, compared to analysts’ expectations of $4.03 million. During the same period in the previous year, the firm earned ($0.08) earnings per share. The firm’s revenue for the quarter was down 0.6 on a year-over-year basis. As a group, equities research analysts forecast that D-Wave Quantum Inc. will post -0.46 EPS for the current fiscal year.

Insider Transactions at D-Wave Quantum

In related news, VP Sophie 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 value of $52,036.50. Following the sale, the vice president owned 589,009 shares in the company, valued at approximately $9,983,702.55. This trade represents a 0.52% decrease in their ownership of the stock. The sale 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. Corporate insiders own 1.30% of the company’s stock.

Institutional Investors Weigh In On D-Wave Quantum

A number of hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new position in shares of D-Wave Quantum during the 2nd quarter valued at $795,206,000. Clear Street Group Inc. grew its holdings in shares of D-Wave Quantum by 40.4% in the fourth quarter. Clear Street Group Inc. now owns 4,281,254 shares of the company’s stock worth $111,955,000 after acquiring an additional 1,232,106 shares during the period. Bank of America Corp DE bought a new stake in shares of D-Wave Quantum in the second quarter worth $104,183,000. Van ECK Associates Corp grew its holdings in shares of D-Wave Quantum by 52.6% in the second quarter. Van ECK Associates Corp now owns 2,339,788 shares of the company’s stock worth $56,132,000 after acquiring an additional 806,835 shares during the period. Finally, Bank of New York Mellon Corp purchased a new stake in D-Wave Quantum during the second quarter valued at $54,951,000. 42.47% of the stock is currently owned by hedge funds and other 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.