D-Wave Quantum (NYSE:QBTS) Shares Gap Up – Should You Buy?

D-Wave Quantum Inc. (NYSE:QBTS)’s share price gapped up prior to trading on Thursday . The stock had previously closed at $19.30, but opened at $21.76. D-Wave Quantum shares last traded at $24.4680, with a volume of 29,091,885 shares.

More D-Wave Quantum News

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

• Positive Sentiment: The biggest driver for QBTS is the reported U.S. government support for quantum computing, including a proposed $100 million CHIPS Act funding package for D-Wave, which investors view as a major validation of the company’s technology and growth prospects. Article Title
• Positive Sentiment: Broader headlines that the Trump administration is committing $2 billion to quantum firms have lifted the entire group, including D-Wave, as traders bet federal money could accelerate commercialization and industry adoption. Article Title
• Positive Sentiment: Quantum stocks continued to rally across the sector, with D-Wave included in a broader move that added billions in market value, reinforcing momentum-driven buying in QBTS. Article Title
• Neutral Sentiment: Trading activity has also been elevated, with unusually heavy call-option buying suggesting speculation remains strong, but this is more a sign of interest than a clear fundamental catalyst.
• Negative Sentiment: A vice president sold shares under a pre-arranged 10b5-1 plan, which may slightly weigh on sentiment even though the transaction does not necessarily signal concern about the business. Article Title

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on QBTS shares. Weiss Ratings lowered shares of D-Wave Quantum from a “sell (d-)” rating to a “sell (e+)” rating in a report on Wednesday, April 29th. Wall Street Zen lowered shares of D-Wave Quantum from a “hold” rating to a “sell” rating in a report on Saturday, February 7th. Cantor Fitzgerald reiterated an “overweight” rating and set a $40.00 price objective on shares of D-Wave Quantum in a report on Wednesday, May 13th. Needham & Company LLC reiterated a “buy” rating and set a $40.00 price objective on shares of D-Wave Quantum in a report on Wednesday, May 13th. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $43.00 price objective on shares of D-Wave Quantum in a report on Wednesday, May 13th. Fourteen analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, D-Wave Quantum has an average rating of “Moderate Buy” and a consensus price target of $34.67.

D-Wave Quantum Stock Performance

The business’s 50-day moving average price is $18.40 and its 200-day moving average price is $22.21. The company has a current ratio of 21.41, a quick ratio of 21.31 and a debt-to-equity ratio of 0.03. The stock has a market cap of $10.78 billion, a PE ratio of -25.78 and a beta of 1.95.

D-Wave Quantum (NYSE:QBTS) last issued its quarterly earnings data on Tuesday, May 12th. The company reported ($0.05) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 company’s quarterly revenue was down 80.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.02) EPS. As a group, equities research analysts expect that D-Wave Quantum Inc. will post -0.44 earnings per share for the current fiscal year.

Insider Buying and Selling at D-Wave Quantum

In related news, Director Rohit Ghai sold 10,000 shares of the business’s stock in a transaction on Monday, March 16th. The shares were sold at an average price of $17.62, for a total value of $176,200.00. Following the completion of the transaction, the director directly owned 27,778 shares in the company, valued at $489,448.36. The trade was a 26.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP Sophie C. Ames sold 23,025 shares of the business’s stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $18.98, for a total transaction of $437,014.50. Following the completion of the transaction, the vice president owned 596,803 shares of the company’s stock, valued at approximately $11,327,320.94. This represents a 3.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 54,801 shares of company stock valued at $1,011,586. 3.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On D-Wave Quantum

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its position in shares of D-Wave Quantum by 41.2% during the third quarter. Vanguard Group Inc. now owns 38,454,869 shares of the company’s stock worth $950,220,000 after purchasing an additional 11,218,255 shares in the last quarter. UBS Group AG lifted its position in shares of D-Wave Quantum by 541.6% during the third quarter. UBS Group AG now owns 12,089,703 shares of the company’s stock worth $298,737,000 after purchasing an additional 10,205,427 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its position in shares of D-Wave Quantum by 136,842.4% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,194,866 shares of the company’s stock worth $83,546,000 after purchasing an additional 3,192,533 shares in the last quarter. Clear Street Group Inc. acquired a new stake in shares of D-Wave Quantum during the third quarter worth about $75,344,000. Finally, Goldman Sachs Group Inc. lifted its position in shares of D-Wave Quantum by 311.6% during the fourth quarter. Goldman Sachs Group Inc. now owns 3,548,013 shares of the company’s stock worth $92,781,000 after purchasing an additional 2,685,980 shares in the last quarter. Hedge funds and other institutional investors 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.