D-Wave Quantum (NYSE:QBTS) Shares Up 10.7% – Still a Buy?

D-Wave Quantum Inc. (NYSE:QBTS)’s share price shot up 10.7% during trading on Wednesday . The stock traded as high as $24.04 and last traded at $23.8460. 38,275,926 shares changed hands during mid-day trading, an increase of 29% from the average session volume of 29,625,477 shares. The stock had previously closed at $21.54.

Analyst Upgrades and Downgrades

Several research firms recently commented on QBTS. Wall Street Zen lowered D-Wave Quantum from a “hold” rating to a “sell” rating in a research note on Saturday, February 7th. Benchmark reiterated a “buy” rating and issued a $35.00 target price on shares of D-Wave Quantum in a research note on Friday, January 23rd. TD Cowen began coverage on D-Wave Quantum in a research note on Thursday, February 12th. They issued a “buy” rating for the company. Northland Securities assumed coverage on D-Wave Quantum in a research note on Monday, April 20th. They issued a “market perform” rating and a $22.00 target price for the company. Finally, Zacks Research upgraded D-Wave Quantum from a “strong sell” rating to a “hold” rating in a research note on Tuesday, April 28th. Fourteen 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 MarketBeat.com, D-Wave Quantum currently has an average rating of “Moderate Buy” and a consensus target price of $35.53.

D-Wave Quantum Trading Up 3.0%

The company has a quick ratio of 42.25, a current ratio of 42.38 and a debt-to-equity ratio of 0.04. The firm has a market cap of $8.38 billion, a price-to-earnings ratio of -20.59 and a beta of 1.95. The business has a 50 day moving average price of $17.69 and a 200-day moving average price of $22.98.

D-Wave Quantum (NYSE:QBTS) last posted its earnings results on Thursday, February 26th. The company reported ($0.09) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.04). The company had revenue of $2.75 million during the quarter, compared to analyst estimates of $3.74 million. D-Wave Quantum had a negative net margin of 1,444.10% and a negative return on equity of 58.58%. The company’s quarterly revenue was up 21.7% compared to the same quarter last year. As a group, research analysts expect that D-Wave Quantum Inc. will post -0.44 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, VP Sophie C. Ames sold 3,070 shares of the stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $21.35, for a total value of $65,544.50. Following the completion of the transaction, the vice president owned 643,678 shares of the company’s stock, valued at approximately $13,742,525.30. This represents a 0.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Markovich sold 10,706 shares of the stock in a transaction dated Friday, March 13th. The shares were sold at an average price of $17.63, for a total value of $188,746.78. Following the completion of the transaction, the chief financial officer directly owned 1,451,427 shares of the company’s stock, valued at $25,588,658.01. This represents a 0.73% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 31,776 shares of company stock worth $574,571. Company insiders own 3.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Root Financial Partners LLC boosted its holdings in D-Wave Quantum by 388.0% in the fourth 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. Parallel Advisors LLC boosted its holdings in D-Wave Quantum by 545.5% in the first quarter. Parallel Advisors LLC now owns 1,788 shares of the company’s stock valued at $26,000 after purchasing an additional 1,511 shares during the last quarter. Kemnay Advisory Services Inc. purchased a new position in D-Wave Quantum in the fourth quarter valued at about $28,000. PeakShares LLC bought a new position in D-Wave Quantum during the 1st quarter worth approximately $29,000. Finally, EverSource Wealth Advisors LLC grew its position in shares of D-Wave Quantum by 267.7% in the 4th quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company’s stock worth $30,000 after acquiring an additional 838 shares in the last quarter. Hedge funds and other institutional investors own 42.47% of the company’s stock.

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.