D-Wave Quantum (NASDAQ:QBTS) Shares Down 3.1% – Here’s Why

Shares of D-Wave Quantum Inc. (NASDAQ:QBTS) dropped 3.1% during trading on Wednesday . The stock traded as low as $16.88 and last traded at $17.12. Approximately 15,831,039 shares changed hands during trading, a decline of 43% from the average session volume of 27,986,547 shares. The stock had previously closed at $17.67.

Trending Headlines about D-Wave Quantum

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

• Positive Sentiment: D-Wave finalized an agreement with the U.S. Department of Commerce for up to $100 million under the CHIPS and Science Act. The funding is intended to accelerate domestic quantum-computing research, hardware development and manufacturing, while giving the government a minority, non-controlling equity stake. D-Wave Quantum Finalizes Definitive Agreement with U.S. Department of Commerce
• Positive Sentiment: The federal investment is part of a broader $300 million program involving D-Wave, Rigetti and Quantinuum. Government backing strengthens D-Wave’s balance sheet and validates quantum computing as a strategic national-security and technology priority. U.S. Gets Minority Stakes in D-Wave, Rigetti, Quantinuum
• Positive Sentiment: D-Wave’s strong liquidity profile— including a current ratio above 20 and very low debt—provides additional runway to fund development. Analysts continue to rate the shares around “Moderate Buy,” supported by expectations for commercial bookings and broader enterprise adoption.
• Neutral Sentiment: D-Wave issued 7,095,721 shares to the Commerce Department as part of the agreement. The transaction supplies capital without conventional debt, but the new shares increase the company’s share count and may dilute existing investors. D-Wave Issues 7.1M QBTS Shares to U.S. Government
• Negative Sentiment: Quantum stocks broadly retreated as expectations for another Federal Reserve rate increase rose. Higher rates typically pressure speculative, high-beta growth companies such as D-Wave by reducing the value investors assign to distant future earnings. Quantum Stocks Fall as Rate-Hike Odds Climb
• Negative Sentiment: Profitability remains a major concern. D-Wave’s latest quarterly results missed expectations, with a loss of $0.10 per share versus an expected $0.08 loss and revenue of $3.08 million versus a $4.03 million consensus estimate. Analysts also continue to flag weak revenue conversion, large losses and an elevated valuation. Rising Risks Overshadow D-Wave Quantum Booking
• Negative Sentiment: A law firm investigation into potential investor claims adds a reputational and legal overhang, although no findings or liability have been established. Pomerantz Law Firm Investigates Claims

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on QBTS shares. BMO Capital Markets initiated coverage on shares of D-Wave Quantum in a report on Thursday, August 20th. They issued an “outperform” rating and a $35.00 price target for the company. Roth Capital restated a “buy” rating and set a $30.00 price objective on shares of D-Wave Quantum in a report on Thursday, August 6th. Benchmark initiated coverage on D-Wave Quantum in a research report on Monday, July 27th. They set a “buy” rating and a $30.00 price objective for the company. Mizuho raised their price target on shares of D-Wave Quantum from $29.00 to $35.00 and gave the stock an “outperform” rating in a research note on Monday, June 15th. Finally, Canaccord Genuity Group set a $35.00 price objective on shares of D-Wave Quantum in a report on Thursday, August 6th. Thirteen equities 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 stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $36.27.

D-Wave Quantum Trading Down 3.1%

The firm has a market cap of $6.33 billion, a price-to-earnings ratio of -24.11 and a beta of 2.15. The company has a debt-to-equity ratio of 0.03, a current ratio of 20.55 and a quick ratio of 20.42. The business has a 50-day moving average of $19.04 and a 200-day moving average of $20.03.

D-Wave Quantum (NASDAQ:QBTS) last posted its quarterly earnings results 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 during the quarter, compared to the consensus estimate 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 quarter in the prior year, the business earned ($0.08) earnings per share. Research analysts anticipate that D-Wave Quantum Inc. will post -0.46 EPS for the current year.

Insider Activity at D-Wave Quantum

In other D-Wave Quantum news, Director Rohit Ghai sold 13,518 shares of the company’s stock in a transaction on Monday, June 15th. The shares were 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 of the company’s stock, valued at approximately $623,724.97. This represents a 36.40% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Markovich sold 200,000 shares of D-Wave Quantum stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $25.71, for a total transaction of $5,142,000.00. Following the completion of the transaction, the chief financial officer directly owned 1,142,820 shares of the company’s stock, valued at approximately $29,381,902.20. This trade represents a 14.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 262,631 shares of company stock valued at $6,656,539. 1.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On D-Wave Quantum

A number of hedge funds and other institutional investors have recently bought and sold shares of QBTS. Tidal Investments LLC bought a new stake in D-Wave Quantum in the second quarter valued at approximately $372,000. Archford Capital Strategies LLC bought a new position in shares of D-Wave Quantum during the 2nd quarter worth approximately $200,000. WINTON GROUP Ltd bought a new position in shares of D-Wave Quantum during the 2nd quarter worth approximately $6,720,000. NorthRock Partners LLC acquired a new position in shares of D-Wave Quantum during the 2nd quarter worth approximately $359,000. Finally, Integrated Wealth Concepts LLC lifted its holdings in D-Wave Quantum by 18.2% during the 2nd quarter. Integrated Wealth Concepts LLC now owns 17,136 shares of the company’s stock valued at $411,000 after purchasing an additional 2,640 shares during the last quarter. 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.