D-Wave Quantum (NASDAQ:QBTS) Trading Down 8.4% – What’s Next?

D-Wave Quantum Inc. (NASDAQ:QBTS) shares fell 8.4% on Monday . The stock traded as low as $18.66 and last traded at $18.68. 17,057,233 shares were traded during trading, a decline of 41% from the average session volume of 28,719,182 shares. The stock had previously closed at $20.39.

Wall Street Analysts Forecast Growth

QBTS has been the subject of a number of recent analyst reports. Needham & Company LLC reaffirmed a “buy” rating and issued a $40.00 price objective on shares of D-Wave Quantum in a research report on Tuesday, June 2nd. Canaccord Genuity Group set a $35.00 price objective on D-Wave Quantum in a report on Thursday, August 6th. Wedbush initiated coverage on D-Wave Quantum in a research note on Monday, August 3rd. They set an “outperform” rating and a $40.00 price objective for the company. Jefferies Financial Group set a $40.00 target price on D-Wave Quantum in a research report on Friday, August 7th. Finally, Mizuho raised their price objective on shares of D-Wave Quantum from $29.00 to $35.00 and gave the company an “outperform” rating in a research note on Monday, June 15th. Thirteen research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $36.27.

D-Wave Quantum Trading Down 8.4%

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 company has a 50-day simple moving average of $20.62 and a 200 day simple moving average of $20.23. The company has a market capitalization of $6.91 billion, a P/E ratio of -26.31 and a beta of 2.15.

D-Wave Quantum (NASDAQ:QBTS) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.10) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.02). The company had revenue of $3.08 million for the quarter, compared to analyst estimates 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%. The firm’s revenue for the quarter was down 0.6 compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.08) earnings per share. Sell-side analysts expect that D-Wave Quantum Inc. will post -0.46 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director John D. Dilullo sold 7,850 shares of the business’s stock in a transaction on Friday, June 5th. The shares were sold at an average price of $24.43, for a total value of $191,775.50. Following the sale, the director directly owned 21,310 shares of the company’s stock, valued at approximately $520,603.30. The trade was a 26.92% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Rohit Ghai sold 13,518 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $26.41, for a total value of $357,010.38. Following the sale, the director owned 23,617 shares in the company, valued at $623,724.97. The trade was a 36.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,012,065 shares of company stock worth $26,245,703 over the last 90 days. 1.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On D-Wave Quantum

Hedge funds have recently added to or reduced their stakes in the stock. Root Financial Partners LLC grew its holdings in shares of D-Wave Quantum by 388.0% during the 4th quarter. Root Financial Partners LLC now owns 976 shares of the company’s stock valued at $26,000 after purchasing an additional 776 shares during the last quarter. Fiduciary Financial Advisors acquired a new stake in D-Wave Quantum in the second quarter valued at approximately $25,000. Kemnay Advisory Services Inc. bought a new stake in shares of D-Wave Quantum during the fourth quarter worth $28,000. EverSource Wealth Advisors LLC grew its stake in shares of D-Wave Quantum by 267.7% during the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company’s stock worth $30,000 after buying an additional 838 shares during the last quarter. Finally, Mcguire Capital Advisors Inc. acquired a new position in shares of D-Wave Quantum during the fourth quarter worth $31,000. 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.