D-Wave Quantum (NYSE:QBTS) Trading Up 3.8% – Still a Buy?

Shares of D-Wave Quantum Inc. (NYSE:QBTS) shot up 3.8% during trading on Monday . The stock traded as high as $26.39 and last traded at $26.2410. 22,612,312 shares changed hands during mid-day trading, a decline of 62% from the average session volume of 60,118,328 shares. The stock had previously closed at $25.29.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Mizuho began coverage on shares of D-Wave Quantum in a report on Thursday, December 11th. They issued an “outperform” rating and a $46.00 price target on the stock. Evercore ISI initiated coverage on D-Wave Quantum in a report on Wednesday, December 3rd. They issued an “outperform” rating and a $44.00 price target for the company. Jefferies Financial Group initiated coverage on D-Wave Quantum in a research report on Tuesday, December 16th. They issued a “buy” rating and a $45.00 price objective on the stock. Benchmark lifted their target price on shares of D-Wave Quantum from $20.00 to $35.00 and gave the company a “buy” rating in a report on Monday, November 10th. Finally, Roth Capital set a $40.00 price target on shares of D-Wave Quantum in a report on Thursday, November 6th. Fourteen equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, D-Wave Quantum currently has an average rating of “Moderate Buy” and an average price target of $33.67.

D-Wave Quantum Stock Performance

The company has a fifty day moving average price of $27.34 and a 200 day moving average price of $22.74. The company has a debt-to-equity ratio of 0.05, a current ratio of 54.68 and a quick ratio of 54.49. The stock has a market cap of $9.35 billion, a P/E ratio of -19.77 and a beta of 1.57.

D-Wave Quantum (NYSE:QBTS) last announced its earnings results on Thursday, November 6th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating the consensus estimate 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 company had revenue of $3.74 million for the quarter, compared to analysts’ expectations of $3.03 million. The business’s revenue was up 105.6% on a year-over-year basis. On average, equities analysts expect that D-Wave Quantum Inc. will post -0.41 EPS for the current year.

Insider Transactions at D-Wave Quantum

In related news, CEO Alan E. Baratz sold 806,288 shares of the stock in a transaction that occurred on Tuesday, November 11th. The stock was sold at an average price of $28.87, for a total transaction 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 approximately $80,872,520.55. This trade represents a 22.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Rohit Ghai sold 10,000 shares of the business’s stock in a transaction dated 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 in the company, valued at approximately $917,249.84. The trade was a 20.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 2,342,087 shares of company stock worth $66,073,024 in the last 90 days. Insiders own 3.20% of the company’s stock.

Hedge Funds Weigh In On D-Wave Quantum

A number of large investors have recently made changes to their positions in QBTS. Invesco Ltd. lifted its holdings in D-Wave Quantum by 123.2% during the 1st quarter. Invesco Ltd. now owns 95,121 shares of the company’s stock worth $723,000 after purchasing an additional 52,502 shares in the last quarter. HighTower Advisors LLC purchased a new stake in shares of D-Wave Quantum in the first quarter worth about $507,000. Russell Investments Group Ltd. lifted its holdings in shares of D-Wave Quantum by 133.9% in the first quarter. Russell Investments Group Ltd. now owns 5,528 shares of the company’s stock worth $42,000 after buying an additional 3,165 shares in the last quarter. Raymond James Financial Inc. boosted its position in shares of D-Wave Quantum by 75.3% in the first quarter. Raymond James Financial Inc. now owns 435,664 shares of the company’s stock valued at $3,311,000 after acquiring an additional 187,191 shares during the period. Finally, Northern Trust Corp grew its stake in D-Wave Quantum by 63.4% during the first quarter. Northern Trust Corp now owns 1,597,981 shares of the company’s stock valued at $12,145,000 after acquiring an additional 619,894 shares in the last quarter. 42.47% of the stock is owned by 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.