D-Wave Quantum (NASDAQ:QBTS) Shares Up 3.6% – Should You Buy?

D-Wave Quantum Inc. (NASDAQ:QBTS)’s share price shot up 3.6% during mid-day trading on Tuesday . The stock traded as high as $19.53 and last traded at $19.35. Approximately 14,882,784 shares changed hands during trading, a decline of 48% from the average daily volume of 28,636,434 shares. The stock had previously closed at $18.68.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on QBTS shares. Benchmark initiated coverage on D-Wave Quantum in a research report on Monday, July 27th. They set a “buy” rating and a $30.00 price target for the company. Stifel Nicolaus set a $35.00 price objective on D-Wave Quantum in a research report on Tuesday, June 2nd. Canaccord Genuity Group set a $35.00 price objective on D-Wave Quantum in a research note on Thursday, August 6th. Mizuho lifted their price objective on D-Wave Quantum from $29.00 to $35.00 and gave the stock an “outperform” rating in a research report on Monday, June 15th. Finally, Jefferies Financial Group set a $40.00 target price on shares of D-Wave Quantum in a research note on Friday, August 7th. Thirteen 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. According to MarketBeat.com, D-Wave Quantum presently has an average rating of “Moderate Buy” and a consensus price target of $36.27.

D-Wave Quantum Trading Up 2.3%

The business has a 50 day simple moving average of $20.27 and a two-hundred day simple moving average of $20.21. The company has a current ratio of 20.55, a quick ratio of 20.42 and a debt-to-equity ratio of 0.03. The company has a market cap of $6.63 billion, a PE ratio of -25.20 and a beta of 2.15.

D-Wave Quantum (NASDAQ:QBTS) last released its earnings results 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 return on equity of 26.67% and a negative net margin of 2,001.59%.The business had revenue of $3.08 million for the quarter, compared to analysts’ expectations of $4.03 million. During the same quarter last year, the company posted ($0.08) earnings per share. The business’s quarterly revenue was down 0.6 compared to the same quarter last year. On average, analysts forecast that D-Wave Quantum Inc. will post -0.46 EPS for the current fiscal 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 3,070 shares of D-Wave Quantum stock in a transaction on Monday, July 20th. The shares were sold at an average price of $16.95, for a total transaction of $52,036.50. Following the completion of the transaction, 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 position. 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 1,012,065 shares of company stock valued at $26,245,703 in the last ninety days. 1.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On D-Wave Quantum

Institutional investors have recently added to or reduced their stakes in the company. Baird Financial Group Inc. raised its holdings in shares of D-Wave Quantum by 12.0% in the 1st quarter. Baird Financial Group Inc. now owns 12,135 shares of the company’s stock worth $92,000 after purchasing an additional 1,300 shares during the period. Royal Bank of Canada increased its position in D-Wave Quantum by 59.8% during the 1st quarter. Royal Bank of Canada now owns 162,088 shares of the company’s stock worth $1,231,000 after purchasing an additional 60,668 shares in the last quarter. AQR Capital Management LLC increased its position in D-Wave Quantum by 201.0% during the 1st quarter. AQR Capital Management LLC now owns 200,765 shares of the company’s stock worth $1,526,000 after purchasing an additional 134,066 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in D-Wave Quantum by 93.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,572 shares of the company’s stock valued at $825,000 after buying an additional 52,437 shares during the period. Finally, NewEdge Advisors LLC lifted its position in D-Wave Quantum by 125.7% during the first quarter. NewEdge Advisors LLC now owns 43,786 shares of the company’s stock valued at $333,000 after buying an additional 24,382 shares in the last quarter. Hedge funds and other 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.