D-Wave Quantum (NYSE:QBTS) Trading 2.7% Higher – Here’s What Happened

D-Wave Quantum Inc. (NYSE:QBTS)’s share price rose 2.7% during trading on Tuesday . The stock traded as high as $31.12 and last traded at $29.9680. Approximately 48,875,502 shares were traded during trading, an increase of 22% from the average daily volume of 39,939,260 shares. The stock had previously closed at $29.17.

Key Headlines Impacting D-Wave Quantum

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

• Positive Sentiment: D-Wave is highlighted in multiple reports as a beneficiary of U.S. government support, including a tentatively awarded $100 million federal funding package and inclusion in a broader quantum initiative that could total about $2 billion. Investors appear to be pricing in faster R&D, commercialization progress, and stronger long-term growth prospects. D-Wave Seeks to Leverage IBM’s Quantum Foundry. $100 Million in Federal Funding Will Help.
• Positive Sentiment: Wall Street sentiment has improved, with Rosenblatt Securities reaffirming a Buy rating and a $43 price target, while Needham also reiterated Buy with a $40 target. Those targets suggest meaningful upside from recent levels and help explain renewed interest in QBTS. Benzinga report on analyst upgrades
• Positive Sentiment: A new survey conducted with D-Wave found that 41% of large UK enterprises expect quantum computing to create more than £100 million in value within a year, and 65% are already adopting or testing the technology. That supports the idea that enterprise demand for quantum solutions is becoming more real, not just theoretical. The Quantum Effect: 41% of Large UK Enterprises Surveyed Expect Quantum Computing to Unlock More Than £100 Million in Value in as Little as One Year
• Neutral Sentiment: Coverage also noted that Wall Street tends to trade quantum-computing names as a single sector, meaning good news for one company can lift peers while also increasing competition for capital across the group. That may keep QBTS moving with the broader quantum theme rather than on company-specific news alone. Will Quantinuum Lift Other Quantum Stocks — Or Eat Their Lunch?

Analyst Ratings Changes

A number of equities research analysts have weighed in on QBTS shares. Weiss Ratings downgraded D-Wave Quantum from a “sell (d-)” rating to a “sell (e+)” rating in a report on Wednesday, April 29th. Canaccord Genuity Group reduced their price objective on shares of D-Wave Quantum from $43.00 to $41.00 and set a “buy” rating for the company in a research report on Wednesday, May 13th. TD Cowen began coverage on shares of D-Wave Quantum in a research note on Thursday, February 12th. They issued a “buy” rating for the company. Zacks Research upgraded shares of D-Wave Quantum from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 28th. Finally, Jefferies Financial Group reissued a “buy” rating on shares of D-Wave Quantum in a research note on Tuesday, May 12th. Fourteen 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. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $36.40.

D-Wave Quantum Stock Down 7.8%

The company has a debt-to-equity ratio of 0.03, a quick ratio of 21.31 and a current ratio of 21.41. The stock’s 50 day simple moving average is $20.31 and its 200 day simple moving average is $22.16. The firm has a market cap of $10.20 billion, a P/E ratio of -24.40 and a beta of 2.05.

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, beating analysts’ consensus estimates of ($0.08) by $0.03. The firm had revenue of $2.86 million during the quarter, compared to analysts’ expectations 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 period last year, the company earned ($0.02) earnings per share. Research analysts anticipate that D-Wave Quantum Inc. will post -0.43 EPS for the current year.

Insider Buying and Selling at D-Wave Quantum

In other news, CFO John M. Markovich sold 328,752 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $27.70, for a total value of $9,106,430.40. Following the completion of the sale, the chief financial officer directly owned 1,442,820 shares of the company’s stock, valued at $39,966,114. This represents a 18.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Sophie C. Ames sold 23,025 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $18.98, for a total value of $437,014.50. Following the completion of the transaction, the vice president owned 596,803 shares in the company, valued at $11,327,320.94. This represents a 3.71% 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. In the last quarter, insiders sold 375,553 shares of company stock worth $9,973,936. Insiders own 1.30% of the company’s stock.

Institutional Investors Weigh In On D-Wave Quantum

Several institutional investors have recently bought and sold shares of QBTS. Root Financial Partners LLC lifted its stake in D-Wave Quantum by 388.0% during the 4th quarter. Root Financial Partners LLC now owns 976 shares of the company’s stock valued at $26,000 after acquiring an additional 776 shares in the last quarter. Parallel Advisors LLC grew its stake in shares of D-Wave Quantum by 545.5% in the 1st quarter. Parallel Advisors LLC now owns 1,788 shares of the company’s stock worth $26,000 after acquiring an additional 1,511 shares in the last quarter. Kemnay Advisory Services Inc. bought a new stake in shares of D-Wave Quantum in the 4th quarter worth $28,000. PeakShares LLC purchased a new stake in shares of D-Wave Quantum in the first quarter valued at about $29,000. Finally, EverSource Wealth Advisors LLC lifted its position in shares of 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 in the last quarter. 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.