D-Wave Quantum (NYSE:QBTS) Shares Down 2.4% – Should You Sell?

D-Wave Quantum Inc. (NYSE:QBTS) fell 2.4% during mid-day trading on Tuesday . The stock traded as low as $15.43 and last traded at $15.9140. 17,946,049 shares changed hands during mid-day trading, a decline of 40% from the average session volume of 29,881,506 shares. The stock had previously closed at $16.31.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on QBTS shares. Mizuho reduced their target price on D-Wave Quantum from $46.00 to $40.00 and set an “outperform” rating on the stock in a research note on Friday, February 27th. Wall Street Zen downgraded D-Wave Quantum from a “hold” rating to a “sell” rating in a research report on Saturday, February 7th. Jefferies Financial Group initiated coverage on D-Wave Quantum in a report on Tuesday, December 16th. They issued a “buy” rating and a $45.00 price target for the company. Evercore initiated coverage on D-Wave Quantum in a research report on Wednesday, December 3rd. They issued an “outperform” rating and a $44.00 price objective on the stock. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $43.00 price objective on shares of D-Wave Quantum in a research note on Wednesday, January 28th. Fourteen analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $36.50.

D-Wave Quantum Stock Down 9.8%

The firm’s 50 day moving average is $20.36 and its 200-day moving average is $25.17. The firm has a market cap of $5.40 billion, a PE ratio of -13.28 and a beta of 1.61. The company has a quick ratio of 42.25, a current ratio of 42.38 and a debt-to-equity ratio of 0.04.

D-Wave Quantum (NYSE:QBTS) last released its earnings results on Thursday, February 26th. The company reported ($0.09) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.04). The firm had revenue of $2.75 million during the quarter, compared to analysts’ expectations of $3.74 million. D-Wave Quantum had a negative return on equity of 58.58% and a negative net margin of 1,444.10%.The firm’s quarterly revenue was up 21.7% on a year-over-year basis. As a group, equities research analysts expect that D-Wave Quantum Inc. will post -0.41 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO John M. Markovich sold 10,706 shares of D-Wave Quantum stock in a transaction on Friday, March 13th. The stock was sold at an average price of $17.63, for a total value of $188,746.78. Following the completion of the sale, the chief financial officer owned 1,451,427 shares of the company’s stock, valued at $25,588,658.01. The trade was a 0.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Rohit Ghai sold 10,000 shares of the company’s stock in a transaction on Monday, March 16th. The shares were sold at an average price of $17.62, for a total value of $176,200.00. Following the completion of the transaction, the director owned 27,778 shares of the company’s stock, valued at $489,448.36. The trade was a 26.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 72,898 shares of company stock worth $1,749,054 in the last three months. Company insiders own 3.20% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Vanguard Group Inc. grew its holdings in D-Wave Quantum by 41.2% in the third quarter. Vanguard Group Inc. now owns 38,454,869 shares of the company’s stock valued at $950,220,000 after purchasing an additional 11,218,255 shares during the period. UBS Group AG raised its stake in 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 purchasing an additional 10,205,427 shares during the period. Geode Capital Management LLC boosted its holdings in shares of D-Wave Quantum by 11.5% in the 4th quarter. Geode Capital Management LLC now owns 8,394,726 shares of the company’s stock valued at $220,085,000 after purchasing an additional 866,405 shares during the last quarter. State Street Corp boosted its holdings in shares of D-Wave Quantum by 5.3% in the 4th quarter. State Street Corp now owns 7,707,085 shares of the company’s stock valued at $201,540,000 after purchasing an additional 385,809 shares during the last quarter. Finally, Marex Group plc purchased a new stake in shares of D-Wave Quantum during the 2nd quarter valued at $80,070,000. 42.47% of the stock is currently owned by hedge funds and other institutional investors.

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.