D-Wave Quantum (NYSE:QBTS) Stock Price Down 6.8% – Should You Sell?

D-Wave Quantum Inc. (NYSE:QBTS)’s share price traded down 6.8% during mid-day trading on Tuesday . The stock traded as low as $20.52 and last traded at $21.0340. Approximately 20,438,639 shares were traded during trading, a decline of 36% from the average session volume of 31,766,309 shares. The stock had previously closed at $22.56.

Wall Street Analyst Weigh In

Several research firms recently issued reports on QBTS. Northland Securities initiated coverage on shares of D-Wave Quantum in a research note on Monday, April 20th. They issued a “market perform” rating and a $22.00 target price for the company. Mizuho raised their price target on shares of D-Wave Quantum from $29.00 to $35.00 and gave the stock an “outperform” rating in a research note on Monday, June 15th. Cantor Fitzgerald restated an “overweight” rating and set a $40.00 price target on shares of D-Wave Quantum in a research report on Wednesday, May 13th. Jefferies Financial Group reiterated a “buy” rating on shares of D-Wave Quantum in a report on Tuesday, May 12th. Finally, Roth Capital raised their price target on shares of D-Wave Quantum from $30.00 to $40.00 and gave the stock a “buy” rating in a report on Tuesday, June 2nd. Fourteen investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $36.80.

D-Wave Quantum Price Performance

The company has a fifty day moving average price of $23.81 and a two-hundred day moving average price of $22.05. The firm has a market capitalization of $7.89 billion, a PE ratio of -18.89 and a beta of 2.11. 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 results on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, topping the consensus estimate of ($0.08) by $0.03. D-Wave Quantum had a negative return on equity of 44.06% and a negative net margin of 2,957.23%.The business had revenue of $2.86 million during the quarter, compared to analysts’ expectations of $4.19 million. During the same quarter in the prior year, the business earned ($0.02) earnings per share. The company’s quarterly revenue was down 80.9% compared to the same quarter last year. Sell-side analysts forecast that D-Wave Quantum Inc. will post -0.43 earnings per share for the current year.

Insider Activity

In related news, CEO Alan E. Baratz sold 687,627 shares of the company’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $26.13, for a total transaction of $17,967,693.51. Following the completion of the transaction, the chief executive officer owned 3,299,771 shares of the company’s stock, valued at approximately $86,223,016.23. This represents a 17.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Sophie C. Ames sold 23,025 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $18.98, for a total transaction of $437,014.50. Following the sale, 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,363,842 shares of company stock worth $35,802,656 in the last quarter. Corporate insiders own 1.30% of the company’s stock.

Hedge Funds Weigh In On D-Wave Quantum

Several institutional investors and hedge funds have recently made changes to their positions in QBTS. UBS Group AG grew its position in shares of D-Wave Quantum by 541.6% during the 3rd quarter. UBS Group AG now owns 12,089,703 shares of the company’s stock valued at $298,737,000 after buying an additional 10,205,427 shares during the last quarter. Geode Capital Management LLC lifted its holdings in D-Wave Quantum by 11.5% in the fourth quarter. Geode Capital Management LLC now owns 8,394,726 shares of the company’s stock worth $220,085,000 after purchasing an additional 866,405 shares during the period. State Street Corp grew its position in D-Wave Quantum by 5.3% in the 4th quarter. State Street Corp now owns 7,707,085 shares of the company’s stock valued at $201,540,000 after buying an additional 385,809 shares in the last quarter. Marex Group plc increased its stake in D-Wave Quantum by 74.9% during the 4th quarter. Marex Group plc now owns 4,592,656 shares of the company’s stock valued at $120,098,000 after buying an additional 1,966,500 shares during the period. Finally, Clear Street Group Inc. raised its position in shares of D-Wave Quantum by 40.4% during the 4th quarter. Clear Street Group Inc. now owns 4,281,254 shares of the company’s stock worth $111,955,000 after buying an additional 1,232,106 shares in the last quarter. 42.47% of the stock is currently owned by hedge funds and other institutional investors.

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.