D-Wave Quantum (NYSE:QBTS) Trading Down 8.9% After Insider Selling

Shares of D-Wave Quantum Inc. (NYSE:QBTS) dropped 8.9% during mid-day trading on Tuesday following insider selling activity. The stock traded as low as $22.35 and last traded at $23.5250. Approximately 37,466,720 shares changed hands during trading, an increase of 15% from the average daily volume of 32,514,066 shares. The stock had previously closed at $25.83.

Specifically, Director John D. Dilullo sold 7,850 shares of the firm’s stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $24.43, for a total value of $191,775.50. Following the transaction, the director owned 21,310 shares in the company, valued at $520,603.30. This trade represents a 26.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Markovich sold 2,908 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $31.00, for a total value of $90,148.00. Following the sale, the chief financial officer directly owned 1,439,912 shares of the company’s stock, valued at $44,637,272. This represents a 0.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the stock. Jefferies Financial Group reiterated a “buy” rating on shares of D-Wave Quantum in a research report on Tuesday, May 12th. Mizuho reduced 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 research note on Wednesday, May 13th. Roth Mkm lifted their target price 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. Rosenblatt Securities reissued a “buy” rating and issued a $43.00 price target on shares of D-Wave Quantum in a research note on Tuesday, June 2nd. Finally, Northland Securities started coverage on D-Wave Quantum in a research report on Monday, April 20th. They issued a “market perform” rating and a $22.00 price target on the stock. Fourteen analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, D-Wave Quantum presently has a consensus rating of “Moderate Buy” and a consensus price target of $36.40.

D-Wave Quantum Stock Down 8.9%

The company has a market cap of $8.70 billion, a price-to-earnings ratio of -20.82 and a beta of 2.05. The company has a current ratio of 21.41, a quick ratio of 21.31 and a debt-to-equity ratio of 0.03. The firm’s fifty day moving average price is $20.92 and its 200-day moving average price is $22.22.

D-Wave Quantum (NYSE:QBTS) last issued 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. 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 for the quarter, compared to the consensus estimate of $4.19 million. During the same quarter last year, the business posted ($0.02) EPS. The firm’s revenue was down 80.9% compared to the same quarter last year. Sell-side analysts predict that D-Wave Quantum Inc. will post -0.43 earnings per share for the current year.

Hedge Funds Weigh In On D-Wave Quantum

Institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. raised its holdings in D-Wave Quantum by 41.2% during the 3rd quarter. Vanguard Group Inc. now owns 38,454,869 shares of the company’s stock worth $950,220,000 after buying an additional 11,218,255 shares during the period. UBS Group AG increased its position in shares of D-Wave Quantum by 541.6% during the third quarter. UBS Group AG now owns 12,089,703 shares of the company’s stock worth $298,737,000 after acquiring an additional 10,205,427 shares in the last quarter. Geode Capital Management LLC increased its position in shares of D-Wave Quantum by 11.5% during the fourth quarter. Geode Capital Management LLC now owns 8,394,726 shares of the company’s stock worth $220,085,000 after acquiring an additional 866,405 shares in the last quarter. State Street Corp raised its holdings in shares of D-Wave Quantum by 5.3% during the fourth quarter. State Street Corp now owns 7,707,085 shares of the company’s stock worth $201,540,000 after acquiring an additional 385,809 shares during the period. Finally, Marex Group plc lifted its position in D-Wave Quantum by 74.9% in the 4th quarter. Marex Group plc now owns 4,592,656 shares of the company’s stock valued at $120,098,000 after acquiring an additional 1,966,500 shares in the last quarter. 42.47% of the stock is currently owned by institutional investors and hedge funds.

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.