D-Wave Quantum (NYSE:QBTS) Trading Down 8.7% – What’s Next?

D-Wave Quantum Inc. (NYSE:QBTS)’s stock price traded down 8.7% on Friday . The company traded as low as $20.70 and last traded at $21.21. Approximately 31,088,494 shares changed hands during trading, a decline of 20% from the average daily volume of 39,081,793 shares. The stock had previously closed at $23.22.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on QBTS. Mizuho initiated coverage on shares of D-Wave Quantum in a report on Thursday, December 11th. They set an “outperform” rating and a $46.00 price target for the company. Jefferies Financial Group started coverage on shares of D-Wave Quantum in a research note on Tuesday, December 16th. They set a “buy” rating and a $45.00 price objective for the company. Zacks Research raised D-Wave Quantum from a “strong sell” rating to a “hold” rating in a research note on Thursday, November 6th. Canaccord Genuity Group set a $43.00 price target on D-Wave Quantum in a research report on Thursday. Finally, Evercore ISI started coverage on D-Wave Quantum in a report on Wednesday, December 3rd. They issued an “outperform” rating and a $44.00 price objective for the company. Thirteen equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $38.21.

D-Wave Quantum Trading Down 8.7%

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 company has a market cap of $7.43 billion, a PE ratio of -15.71 and a beta of 1.57. The stock has a 50 day moving average price of $26.44 and a 200 day moving average price of $24.73.

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

Insider Activity at D-Wave Quantum

In other D-Wave Quantum news, Director Rohit Ghai sold 10,000 shares of the firm’s stock in a transaction that occurred on Monday, December 15th. The shares were sold at an average price of $24.28, for a total transaction of $242,800.00. Following the completion of the transaction, the director owned 37,778 shares of the company’s stock, valued at approximately $917,249.84. This trade represents a 20.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Alan E. Baratz sold 806,288 shares of the business’s stock in a transaction that occurred on Tuesday, November 11th. The stock was 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 in the company, valued at approximately $80,872,520.55. This represents a 22.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 2,346,916 shares of company stock valued at $65,591,314 in the last three months. Company insiders own 3.20% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its stake in shares of D-Wave Quantum by 41.2% in the third quarter. Vanguard Group Inc. now owns 38,454,869 shares of the company’s stock worth $950,220,000 after acquiring an additional 11,218,255 shares during the last quarter. UBS Group AG boosted its stake in D-Wave Quantum by 541.6% in the 3rd 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. Marex Group plc purchased a new stake in D-Wave Quantum during the 2nd quarter valued at about $80,070,000. Arrowstreet Capital Limited Partnership purchased a new stake in D-Wave Quantum during the 2nd quarter valued at about $45,372,000. Finally, Clear Street Group Inc. bought a new stake in D-Wave Quantum during the 3rd quarter valued at about $75,344,000. Hedge funds and other 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.