D-Wave Quantum (NYSE:QBTS) Shares Down 9% – Here’s Why

D-Wave Quantum Inc. (NYSE:QBTS)’s share price fell 9% during trading on Tuesday . The stock traded as low as $23.88 and last traded at $23.9090. 29,225,397 shares were traded during trading, a decline of 10% from the average session volume of 32,349,762 shares. The stock had previously closed at $26.26.

D-Wave Quantum News Summary

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

• Positive Sentiment: Mizuho reportedly raised its price target after D-Wave’s analyst day, reinforcing optimism around the company’s roadmap and execution plans. D-Wave Quantum jumps as Mizuho ups price target after analyst day
• Positive Sentiment: Recent coverage highlighted D-Wave’s new gate-model roadmap, including a goal of reaching 100 logical qubits by 2032, which supports the long-term growth story. D-Wave Quantum (QBTS) Inspires Confidence With Latest Gate-Model Roadmap
• Positive Sentiment: Some market commentary continues to frame QBTS as a leading pure-play quantum name, with bullish technical commentary suggesting the stock still has momentum potential if support levels hold. D-Wave Quantum (QBTS) Price Forecast: Bullish Retest Strengthens Setup
• Neutral Sentiment: Investors remain focused on the company’s long-term quantum-computing opportunity, but also on whether revenue growth can eventually justify the stock’s elevated valuation. Is QBTS the NVIDIA of Quantum Computing or is it Overvalued?
• Neutral Sentiment: Broader investor interest in quantum stocks stayed high, but the group’s rally reversed intraday as traders rotated out of the sector after Monday’s sharp gains. IonQ, Rigetti, D-Wave, and Quantum Computing Inc. All Fall 5% to 7% as the Quantum Rally Reverses
• Negative Sentiment: Analysts and market commentary are warning that QBTS’s valuation has become stretched, which raises the risk of pullbacks if execution or revenue growth slows. Stock Market Today, June 15: D-Wave Quantum Jumps After Mizuho Raises Price Target on Roadmap Progress
• Negative Sentiment: Recent coverage also noted insider selling, which may have added to investor caution around the stock’s near-term upside. D-Wave Quantum (QBTS) Stock Climbs as Insider Sales Raise Investor Questions

Analyst Ratings Changes

A number of equities analysts have issued reports on QBTS shares. Roth Mkm upped their target price on D-Wave Quantum from $30.00 to $40.00 and gave the company a “buy” rating in a research report on Tuesday, June 2nd. Rosenblatt Securities reiterated a “buy” rating and issued a $43.00 price target on shares of D-Wave Quantum in a report on Thursday, June 11th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $40.00 price target on shares of D-Wave Quantum in a report on Wednesday, May 13th. Jefferies Financial Group reiterated a “buy” rating on shares of D-Wave Quantum in a report on Tuesday, May 12th. Finally, B. Riley Financial boosted their price target on D-Wave Quantum from $36.00 to $40.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. Fourteen investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $36.80.

D-Wave Quantum Stock Performance

The stock has a market capitalization of $8.84 billion, a P/E ratio of -21.16 and a beta of 2.05. The stock has a 50 day moving average of $21.95 and a 200 day moving average of $22.29. The company has a debt-to-equity ratio of 0.03, a quick ratio of 21.31 and a current ratio of 21.41.

D-Wave Quantum (NYSE:QBTS) last issued its quarterly earnings data on Tuesday, May 12th. The company reported ($0.05) EPS for the quarter, topping analysts’ consensus estimates of ($0.08) by $0.03. The firm had revenue of $2.86 million during the quarter, compared to the consensus estimate of $4.19 million. D-Wave Quantum had a negative return on equity of 44.06% and a negative net margin of 2,957.23%.The firm’s revenue was down 80.9% on a year-over-year basis. During the same period in the prior year, the business earned ($0.02) EPS. Equities analysts predict that D-Wave Quantum Inc. will post -0.43 EPS for the current year.

Insider Buying and Selling

In other news, VP Sophie C. Ames sold 23,025 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $18.98, for a total value of $437,014.50. Following the completion of the transaction, the vice president owned 596,803 shares of the company’s stock, valued at approximately $11,327,320.94. This represents a 3.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Markovich sold 328,752 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $27.70, for a total value of $9,106,430.40. Following the completion of the transaction, the chief financial officer directly owned 1,442,820 shares of the company’s stock, valued at approximately $39,966,114. The trade was a 18.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,104,281 shares of company stock valued at $29,198,153 in the last 90 days. Corporate insiders own 1.30% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Root Financial Partners LLC grew its stake in shares of D-Wave Quantum by 388.0% in the fourth quarter. Root Financial Partners LLC now owns 976 shares of the company’s stock worth $26,000 after purchasing an additional 776 shares in the last quarter. Kemnay Advisory Services Inc. bought a new position in shares of D-Wave Quantum in the fourth quarter worth $28,000. EverSource Wealth Advisors LLC grew its stake in shares of D-Wave Quantum by 267.7% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company’s stock worth $30,000 after purchasing an additional 838 shares in the last quarter. Mcguire Capital Advisors Inc. bought a new position in shares of D-Wave Quantum in the fourth quarter worth $31,000. Finally, Ancora Advisors LLC bought a new position in shares of D-Wave Quantum in the third quarter worth $30,000. Institutional investors own 42.47% of the company’s stock.

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.