D-Wave Quantum (NYSE:QBTS) Stock Price Down 7.4% – Should You Sell?

D-Wave Quantum Inc. (NYSE:QBTS) shares dropped 7.4% on Monday . The company traded as low as $23.45 and last traded at $23.74. Approximately 29,077,689 shares were traded during mid-day trading, a decline of 28% from the average daily volume of 40,167,191 shares. The stock had previously closed at $25.63.

Analyst Ratings Changes

Several research analysts have recently weighed in on QBTS shares. Evercore ISI initiated coverage on shares of D-Wave Quantum in a research note on Wednesday, December 3rd. They issued an “outperform” rating and a $44.00 target price for the company. Rosenblatt Securities reissued a “buy” rating and set a $40.00 target price on shares of D-Wave Quantum in a report on Wednesday, January 7th. Roth Mkm set a $40.00 price objective on D-Wave Quantum in a research note on Thursday, November 6th. Mizuho started coverage on D-Wave Quantum in a report on Thursday, December 11th. They set an “outperform” rating and a $46.00 price target on the stock. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $48.00 target price on shares of D-Wave Quantum in a report on Thursday. Thirteen equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, D-Wave Quantum has a consensus rating of “Moderate Buy” and an average price target of $37.86.

D-Wave Quantum Price Performance

The company has a current ratio of 54.68, a quick ratio of 54.49 and a debt-to-equity ratio of 0.05. The business’s fifty day simple moving average is $26.29 and its 200 day simple moving average is $24.52.

D-Wave Quantum (NYSE:QBTS) last posted its earnings results on Thursday, November 6th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.02. D-Wave Quantum had a negative return on equity of 97.58% and a negative net margin of 1,651.81%.The firm had revenue of $3.74 million during the quarter, compared to analysts’ expectations of $3.03 million. The firm’s revenue was up 105.6% on a year-over-year basis. Equities analysts expect that D-Wave Quantum Inc. will post -0.41 EPS for the current year.

Insider Buying and Selling at D-Wave Quantum

In related news, CFO John M. Markovich sold 200,000 shares of the business’s stock in a transaction on Thursday, November 20th. The shares were sold at an average price of $22.94, for a total transaction of $4,588,000.00. Following the transaction, the chief financial officer owned 1,482,874 shares in the company, valued at $34,017,129.56. The trade was a 11.88% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Alan E. Baratz sold 806,288 shares of the firm’s stock in a transaction that occurred on Tuesday, November 11th. The shares were sold at an average price of $28.87, for a total value of $23,277,534.56. Following the completion of the sale, the chief executive officer directly owned 2,801,265 shares of the company’s stock, valued at $80,872,520.55. This trade represents a 22.35% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 2,346,916 shares of company stock worth $65,591,314 over the last three months. Corporate insiders own 3.20% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Atlantic Union Bankshares Corp bought a new stake in D-Wave Quantum in the second quarter valued at approximately $29,000. Ancora Advisors LLC purchased a new stake in shares of D-Wave Quantum in the third quarter worth $30,000. Financial Consulate Inc. purchased a new stake in shares of D-Wave Quantum during the third quarter valued at approximately $31,000. Parallel Advisors LLC increased its holdings in D-Wave Quantum by 227.3% in the 2nd quarter. Parallel Advisors LLC now owns 2,206 shares of the company’s stock worth $32,000 after buying an additional 1,532 shares in the last quarter. Finally, Gables Capital Management Inc. purchased a new stake in D-Wave Quantum during the 2nd quarter valued at $37,000. 42.47% of the stock is currently owned by hedge funds and other institutional investors.

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.