D-Wave Quantum (NYSE:QBTS) Stock Price Up 33.5% – Should You Buy?

D-Wave Quantum Inc. (NYSE:QBTS)’s stock price rose 33.5% during trading on Thursday . The stock traded as high as $25.83 and last traded at $25.7710. Approximately 113,564,077 shares changed hands during trading, an increase of 275% from the average daily volume of 30,279,285 shares. The stock had previously closed at $19.30.

Key Stories Impacting D-Wave Quantum

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

• Positive Sentiment: D-Wave signed a Letter of Intent with the U.S. Department of Commerce for up to $100 million in proposed CHIPS and Science Act funding, which could help accelerate U.S. quantum-computing development and support D-Wave’s scaling efforts. Article Title
• Positive Sentiment: Reports that Washington is preparing a broader $2 billion quantum funding package for nine quantum companies lifted sentiment across the entire group, including QBTS, as investors bet on government-backed demand and industry validation. Article Title
• Positive Sentiment: Several market reports noted that quantum stocks were breaking out after news of possible government stakes, with D-Wave among the biggest gainers as traders rotated into the theme. Article Title
• Positive Sentiment: Unusually heavy options activity in QBTS call contracts suggests traders are positioning for more upside, reinforcing the bullish move. Article Title
• Neutral Sentiment: Broader tech stocks were also firmer during the session, which may have added some tailwind to QBTS but was not the main driver. Article Title
• Negative Sentiment: Investors should note that D-Wave still has weak profitability and depends heavily on future commercialization; recent coverage highlighted strong revenue growth, but also ongoing losses and execution risk. Article Title

Analyst Ratings Changes

QBTS has been the topic of several research reports. TD Cowen initiated coverage on shares of D-Wave Quantum in a research note on Thursday, February 12th. They set a “buy” rating on the stock. Weiss Ratings lowered shares of D-Wave Quantum from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Wednesday, April 29th. Mizuho dropped their price objective on shares of D-Wave Quantum from $31.00 to $29.00 and set an “outperform” rating on the stock in a research note on Wednesday, May 13th. Jefferies Financial Group reissued a “buy” rating on shares of D-Wave Quantum in a research note on Tuesday, May 12th. Finally, Needham & Company LLC reissued a “buy” rating and set a $40.00 price objective on shares of D-Wave Quantum in a research note on Wednesday, May 13th. Fourteen 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.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $34.67.

D-Wave Quantum Trading Up 33.5%

The firm’s 50 day moving average price is $18.06 and its 200-day moving average price is $22.24. The stock has a market cap of $9.53 billion, a P/E ratio of -22.81 and a beta of 1.95. The company has a debt-to-equity ratio of 0.03, a current ratio of 21.41 and a quick ratio of 21.31.

D-Wave Quantum (NYSE:QBTS) last issued its earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share (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 the consensus estimate 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 business’s revenue was down 80.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.02) earnings per share. As a group, equities research analysts forecast that D-Wave Quantum Inc. will post -0.44 earnings per share for the current year.

Insider Activity

In other news, Director John D. Dilullo sold 8,000 shares of the company’s stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $18.01, for a total value of $144,080.00. Following the transaction, the director owned 19,803 shares in the company, valued at approximately $356,652.03. This represents a 28.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO John M. Markovich sold 10,706 shares of the company’s stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $17.63, for a total transaction of $188,746.78. Following the completion of the transaction, the chief financial officer owned 1,451,427 shares in the company, valued at approximately $25,588,658.01. This represents a 0.73% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 31,776 shares of company stock worth $574,571. Corporate insiders own 3.20% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in QBTS. Root Financial Partners LLC lifted its position in D-Wave Quantum by 388.0% during the fourth quarter. Root Financial Partners LLC now owns 976 shares of the company’s stock valued at $26,000 after purchasing an additional 776 shares during the period. Parallel Advisors LLC lifted its position 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 approximately $28,000. PeakShares LLC bought a new position in D-Wave Quantum during the first quarter valued at approximately $29,000. Finally, EverSource Wealth Advisors LLC lifted its position in D-Wave Quantum by 267.7% during the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company’s stock valued at $30,000 after purchasing an additional 838 shares during the period. 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.