D-Wave Quantum (NASDAQ:QBTS) Trading Down 1.1% – Here’s Why

D-Wave Quantum Inc. (NASDAQ:QBTS) shares fell 1.1% during mid-day trading on Wednesday . The company traded as low as $18.92 and last traded at $19.32. 13,027,515 shares changed hands during mid-day trading, a decline of 55% from the average session volume of 28,960,445 shares. The stock had previously closed at $19.53.

Key Headlines Impacting D-Wave Quantum

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

• Positive Sentiment: Commercial validation from NTT DOCOMO: Japan’s largest mobile operator deployed a second D-Wave-powered quantum application in production for network operations. The repeat deployment supports D-Wave’s claims that its technology is moving beyond experimentation and into practical enterprise use. D-Wave Technology Drives NTT DOCOMO’s Second Production Quantum Application in Network Operations
• Positive Sentiment: Bookings momentum is a key bullish point: D-Wave’s second-quarter bookings reportedly surged 1,120% to $36 million. If the company can convert those bookings into recognized revenue, the growth could help justify some of the market’s premium expectations. D-Wave Quantum vs. Microsoft
• Positive Sentiment: Analyst-implied upside and policy support: One analysis estimates approximately 71% potential upside for QBTS, while recent U.S. quantum initiatives and the broader U.S.-China technology race are providing sector-wide attention and possible long-term demand catalysts. D-Wave Stock: 71% Potential Upside
• Neutral Sentiment: Investors are becoming more selective: D-Wave, IonQ and Rigetti are showing different levels of revenue growth and financial strength, encouraging investors to compare individual companies with diversified quantum-focused ETFs rather than buying the entire sector indiscriminately. Quantum Stocks Are Starting to Choose Sides
• Negative Sentiment: Valuation and execution risks remain substantial: D-Wave has minimal revenue, remains unprofitable, and its valuation is considered excessive by some analysts. Weak technical indicators mean investors are likely to demand evidence that bookings growth will produce sustained revenue expansion. D-Wave Stock Valuation and Execution Risks
• Negative Sentiment: Higher interest rates pressured the sector: A rise in long-term Treasury yields triggered a rotation out of high-growth, pre-profit technology stocks, weighing on quantum-computing shares, including QBTS. Quantum Stocks Fall as Rates Force Rotation

Analysts Set New Price Targets

QBTS has been the subject of a number of research analyst reports. Mizuho increased their target price on shares of D-Wave Quantum from $29.00 to $35.00 and gave the company an “outperform” rating in a report on Monday, June 15th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $43.00 price objective on shares of D-Wave Quantum in a research note on Friday, August 7th. Needham & Company LLC reaffirmed a “buy” rating and set a $40.00 price objective on shares of D-Wave Quantum in a report on Tuesday, June 2nd. Wedbush started coverage on D-Wave Quantum in a research report on Monday, August 3rd. They set an “outperform” rating and a $40.00 target price on the stock. Finally, Weiss Ratings lowered D-Wave Quantum from a “sell (d-)” rating to a “sell (e+)” rating in a report on Tuesday, August 11th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, D-Wave Quantum currently has an average rating of “Moderate Buy” and an average target price of $36.36.

D-Wave Quantum Price Performance

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 capitalization of $7.15 billion, a price-to-earnings ratio of -27.21 and a beta of 2.15. The company has a 50-day moving average of $20.86 and a 200-day moving average of $20.28.

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

Insider Buying and Selling at D-Wave Quantum

In related news, CEO Alan E. Baratz sold 687,627 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $26.13, for a total transaction of $17,967,693.51. Following the sale, the chief executive officer owned 3,299,771 shares of the company’s stock, valued at $86,223,016.23. This trade represents a 17.25% 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. Also, Director Rohit Ghai sold 13,518 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $26.41, for a total transaction of $357,010.38. Following the sale, the director directly owned 23,617 shares in the company, valued at $623,724.97. This represents a 36.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 1,340,817 shares of company stock valued at $35,352,133. 1.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of QBTS. Fiduciary Financial Advisors purchased a new stake in shares of D-Wave Quantum in the second quarter valued at $25,000. Root Financial Partners LLC boosted its stake in D-Wave Quantum by 388.0% in the 4th quarter. Root Financial Partners LLC now owns 976 shares of the company’s stock worth $26,000 after buying an additional 776 shares during the last quarter. Parallel Advisors LLC boosted its stake in 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 buying an additional 1,511 shares during the last quarter. Kemnay Advisory Services Inc. purchased a new stake in D-Wave Quantum in the 4th quarter valued at about $28,000. Finally, PeakShares LLC purchased a new stake in D-Wave Quantum in the 1st quarter valued at about $29,000. 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.