D-Wave Quantum (NASDAQ:QBTS) Trading Down 1.4% – Should You Sell?

D-Wave Quantum Inc. (NASDAQ:QBTS)’s share price traded down 1.4% during trading on Monday . The stock traded as low as $20.19 and last traded at $20.87. 10,029,012 shares changed hands during mid-day trading, a decline of 66% from the average daily volume of 29,165,053 shares. The stock had previously closed at $21.17.

Analyst Upgrades and Downgrades

QBTS has been the subject of several research reports. Needham & Company LLC restated a “buy” rating and set a $40.00 price objective on shares of D-Wave Quantum in a research report on Tuesday, June 2nd. Jefferies Financial Group set a $40.00 target price on shares of D-Wave Quantum in a report on Friday, August 7th. Wedbush began coverage on shares of D-Wave Quantum in a report on Monday, August 3rd. They set an “outperform” rating and a $40.00 target price for the company. Wall Street Zen upgraded shares of D-Wave Quantum from a “strong sell” rating to a “sell” rating in a research report on Saturday, August 8th. Finally, Stifel Nicolaus set a $35.00 price target on D-Wave Quantum in a report on Tuesday, June 2nd. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $36.36.

D-Wave Quantum Price Performance

The stock has a 50 day moving average of $21.04 and a two-hundred day moving average of $20.34. The company has a debt-to-equity ratio of 0.03, a quick ratio of 20.42 and a current ratio of 20.55. The stock has a market cap of $7.72 billion, a PE ratio of -29.39 and a beta of 2.15.

D-Wave Quantum (NASDAQ:QBTS) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.10) EPS for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.02). D-Wave Quantum had a negative net margin of 2,001.59% and a negative return on equity of 26.67%. The firm had revenue of $3.08 million for the quarter, compared to analysts’ expectations of $4.03 million. During the same period in the prior year, the company posted ($0.08) earnings per share. D-Wave Quantum’s quarterly revenue was down 0.6 compared to the same quarter last year. Equities analysts anticipate that D-Wave Quantum Inc. will post -0.42 EPS for the current year.

Insiders Place Their Bets

In other D-Wave Quantum news, CEO Alan E. Baratz sold 687,627 shares of the business’s stock in a transaction 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 sale, the chief executive officer directly owned 3,299,771 shares of the company’s stock, valued at $86,223,016.23. The trade was a 17.25% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Rohit Ghai sold 13,518 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $26.41, for a total value of $357,010.38. Following the completion of the sale, the director owned 23,617 shares of the company’s stock, valued at $623,724.97. The trade was a 36.40% 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 1,363,842 shares of company stock worth $35,789,148 in the last quarter. Corporate insiders own 1.30% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of QBTS. BlackRock Inc. purchased a new position in D-Wave Quantum during the 2nd quarter valued at about $795,206,000. UBS Group AG lifted its position in shares of D-Wave Quantum by 541.6% in 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. Bank of America Corp DE acquired a new stake in shares of D-Wave Quantum during the second quarter worth approximately $104,183,000. Northwestern Mutual Wealth Management Co. boosted its holdings 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 during the period. Finally, Goldman Sachs Group Inc. grew its position in 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 valued at $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.

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.