D-Wave Quantum (NYSE:QBTS) Trading Down 7.4% – Here’s What Happened

D-Wave Quantum Inc. (NYSE:QBTS) shares traded down 7.4% during trading on Tuesday . The stock traded as low as $26.63 and last traded at $27.21. 16,633,976 shares were traded during trading, a decline of 47% from the average session volume of 31,325,207 shares. The stock had previously closed at $29.40.

D-Wave Quantum News Summary

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

• Positive Sentiment: D-Wave’s unit secured second-year funding under a U.S.-backed defense/microelectronics program to advance superconducting quantum innovation, reinforcing its hardware roadmap and validating the technology. D-Wave unit secures second-year funding for superconducting quantum innovation
• Positive Sentiment: Multiple reports say the funding boost should help D-Wave accelerate its superconducting quantum computing push, which investors are viewing as a meaningful catalyst for revenue opportunities and strategic momentum. D-Wave Stock Climbs as U.S.-Backed Quantum Funding Boosts QBTS Hardware Push
• Positive Sentiment: The company also announced it was awarded Year 2 Microelectronics Commons project funding to advance superconducting quantum innovation, adding to the bullish narrative around government-backed commercialization. D-Wave Awarded Year 2 Microelectronics Commons Project Funding to Advance Superconducting Quantum Innovation
• Neutral Sentiment: Broader articles on quantum stocks and IPO activity highlight renewed interest in the sector, but they are more thematic than company-specific for QBTS. Quantum Stocks Just Got a Lifeline—Who Benefits Most?
• Neutral Sentiment: Coverage of D-Wave’s sharp earlier move after strong Q1 results and record bookings is still supporting sentiment, but it reflects a prior earnings-driven rally rather than a new catalyst. D-Wave Stock Skyrockets 62% After Q1 Earnings: Time to Buy QBTS?
• Negative Sentiment: One report notes insider sales after the stock’s surge, which could temper enthusiasm if investors worry management is taking advantage of the rally. D-Wave Quantum Insider Sales Surface after QBTS Stock Soars on Quantum Funding Buzz

Analysts Set New Price Targets

QBTS has been the topic of several analyst reports. Northland Securities began coverage on shares of D-Wave Quantum in a report on Monday, April 20th. They issued a “market perform” rating and a $22.00 target price on the stock. Mizuho cut 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 report on Wednesday, May 13th. Wall Street Zen downgraded D-Wave Quantum from a “hold” rating to a “sell” rating in a report on Saturday, February 7th. Rosenblatt Securities reissued a “buy” rating and issued a $43.00 price objective on shares of D-Wave Quantum in a research note on Wednesday, May 13th. Finally, TD Cowen initiated coverage on shares of D-Wave Quantum in a research report on Thursday, February 12th. They set a “buy” rating for the company. Fourteen equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $34.67.

D-Wave Quantum Price Performance

The firm has a market cap of $10.19 billion, a PE ratio of -24.38 and a beta of 1.95. The company has a 50 day moving average price of $18.63 and a 200 day moving average price of $22.13. The company has a current ratio of 21.41, a quick ratio of 21.31 and a debt-to-equity ratio of 0.03.

D-Wave Quantum (NYSE:QBTS) last released its quarterly earnings data on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, topping the consensus estimate of ($0.08) by $0.03. The business had revenue of $2.86 million for the quarter, compared to analyst estimates 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 for the quarter was down 80.9% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.02) EPS. On average, sell-side analysts expect that D-Wave Quantum Inc. will post -0.44 EPS for the current year.

Insider Buying and Selling at D-Wave Quantum

In related news, Director John D. Dilullo sold 8,000 shares of the company’s stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $18.01, for a total transaction of $144,080.00. Following the completion of the sale, the director directly owned 19,803 shares of the company’s stock, valued at approximately $356,652.03. This represents a 28.77% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO John M. Markovich sold 10,706 shares of the stock in a transaction on Friday, March 13th. The shares were sold at an average price of $17.63, for a total value of $188,746.78. Following the completion of the sale, the chief financial officer owned 1,451,427 shares of the company’s stock, valued at approximately $25,588,658.01. This represents a 0.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 54,801 shares of company stock worth $1,011,586. Insiders own 3.20% of the company’s stock.

Institutional Trading of D-Wave Quantum

Several large investors have recently bought and sold shares of the company. Root Financial Partners LLC lifted its stake in shares of D-Wave Quantum by 388.0% in the fourth quarter. Root Financial Partners LLC now owns 976 shares of the company’s stock worth $26,000 after acquiring an additional 776 shares in the last quarter. Kemnay Advisory Services Inc. bought a new stake in shares of D-Wave Quantum in the fourth quarter worth $28,000. EverSource Wealth Advisors LLC raised its holdings in D-Wave Quantum by 267.7% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company’s stock valued at $30,000 after acquiring an additional 838 shares in the last quarter. Mcguire Capital Advisors Inc. acquired a new position in D-Wave Quantum during the 4th quarter worth $31,000. Finally, Ancora Advisors LLC bought a new stake in shares of D-Wave Quantum in the 3rd quarter worth about $30,000. Institutional investors and hedge funds 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.