D-Wave Quantum (NYSE:QBTS) Shares Down 8.7% – Should You Sell?

D-Wave Quantum Inc. (NYSE:QBTS)’s stock price traded down 8.7% on Friday . The stock traded as low as $20.70 and last traded at $21.21. 31,088,494 shares traded hands during mid-day trading, a decline of 20% from the average session volume of 39,081,793 shares. The stock had previously closed at $23.22.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the stock. Cantor Fitzgerald lifted their target price on shares of D-Wave Quantum from $20.00 to $40.00 and gave the company an “overweight” rating in a report on Friday, November 7th. Roth Mkm set a $40.00 price objective on shares of D-Wave Quantum in a research report on Thursday, November 6th. Williams Trading set a $35.00 target price on D-Wave Quantum in a research report on Monday, November 10th. Wall Street Zen raised D-Wave Quantum from a “sell” rating to a “hold” rating in a report on Saturday, January 10th. Finally, Wedbush began coverage on D-Wave Quantum in a report on Wednesday, December 17th. They issued an “outperform” rating and a $35.00 price objective on the stock. Thirteen research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, D-Wave Quantum presently has an average rating of “Moderate Buy” and a consensus target price of $38.21.

D-Wave Quantum Trading Down 8.7%

The company has a current ratio of 54.68, a quick ratio of 54.49 and a debt-to-equity ratio of 0.05. The firm has a market capitalization of $7.43 billion, a price-to-earnings ratio of -15.71 and a beta of 1.57. The company has a fifty day moving average price of $26.43 and a two-hundred day moving average price of $24.63.

D-Wave Quantum (NYSE:QBTS) last issued 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 during the quarter, compared to analysts’ expectations of $3.03 million. D-Wave Quantum’s revenue was up 105.6% on a year-over-year basis. As a group, research analysts forecast that D-Wave Quantum Inc. will post -0.41 earnings per share for the current fiscal year.

Insider Buying and Selling at D-Wave Quantum

In other news, CFO John M. Markovich sold 200,000 shares of the stock in a transaction that occurred on Thursday, November 20th. The shares were sold at an average price of $22.94, for a total value of $4,588,000.00. Following the completion of the sale, the chief financial officer owned 1,482,874 shares of the company’s stock, valued at $34,017,129.56. This represents a 11.88% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Rohit Ghai sold 10,000 shares of the firm’s stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $24.28, for a total transaction of $242,800.00. Following the sale, the director owned 37,778 shares of the company’s stock, valued at $917,249.84. This represents a 20.93% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 2,346,916 shares of company stock worth $65,591,314 in the last ninety days. 3.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Atlantic Union Bankshares Corp acquired a new stake in shares of D-Wave Quantum during the second quarter valued at about $29,000. Ancora Advisors LLC purchased a new position in shares of D-Wave Quantum during the 3rd quarter worth approximately $30,000. Financial Consulate Inc. acquired a new stake in D-Wave Quantum in the 3rd quarter valued at approximately $31,000. Gables Capital Management Inc. purchased a new stake in D-Wave Quantum in the second quarter valued at approximately $37,000. Finally, Kelleher Financial Advisors acquired a new position in D-Wave Quantum during the third quarter worth $40,000. Institutional investors and hedge funds 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.