D-Wave Quantum (NYSE:QBTS) Trading Down 5.1% – Time to Sell?

D-Wave Quantum Inc. (NYSE:QBTS)’s stock price fell 5.1% during trading on Friday . The company traded as low as $19.95 and last traded at $20.0790. Approximately 14,421,586 shares changed hands during mid-day trading, a decline of 54% from the average session volume of 31,431,279 shares. The stock had previously closed at $21.16.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on QBTS shares. Cantor Fitzgerald reiterated an “overweight” rating and set a $40.00 target price on shares of D-Wave Quantum in a research note on Wednesday, May 13th. Stifel Nicolaus set a $35.00 price target on D-Wave Quantum in a research report on Tuesday, June 2nd. Canaccord Genuity Group reduced their price objective on D-Wave Quantum from $43.00 to $41.00 and set a “buy” rating for the company in a research note on Wednesday, May 13th. Mizuho increased their price objective on D-Wave Quantum from $29.00 to $35.00 and gave the stock an “outperform” rating in a research report on Monday, June 15th. Finally, B. Riley Financial lifted their target price on D-Wave Quantum from $36.00 to $40.00 and gave the company a “buy” rating in a research note on Tuesday, June 2nd. Fourteen investment 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’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $36.80.

D-Wave Quantum Stock Performance

The company has a market cap of $7.43 billion, a PE ratio of -17.77 and a beta of 2.11. The stock’s 50-day simple moving average is $23.88 and its 200 day simple moving average is $22.01. 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 posted its quarterly earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.08) by $0.03. The firm had revenue of $2.86 million during the quarter, compared to analysts’ expectations of $4.19 million. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The firm’s revenue for the quarter was down 80.9% on a year-over-year basis. During the same period in the prior year, the company posted ($0.02) earnings per share. As a group, equities analysts anticipate that D-Wave Quantum Inc. will post -0.43 EPS for the current year.

Insider Activity at D-Wave Quantum

In other news, CFO John M. Markovich sold 328,752 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $27.70, for a total transaction 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. This represents a 18.56% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP Sophie C. Ames sold 23,025 shares of the stock in a transaction that occurred 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 transaction, the vice president directly owned 596,803 shares of the company’s stock, valued at approximately $11,327,320.94. This trade represents a 3.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,363,842 shares of company stock worth $35,802,656 in the last three months. 1.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of QBTS. Handelsbanken Fonder AB lifted its holdings in D-Wave Quantum by 23.6% in the second quarter. Handelsbanken Fonder AB now owns 133,200 shares of the company’s stock valued at $3,195,000 after acquiring an additional 25,400 shares during the period. Bay Rivers Group grew its stake in shares of D-Wave Quantum by 62.2% during the 2nd quarter. Bay Rivers Group now owns 17,357 shares of the company’s stock worth $416,000 after purchasing an additional 6,657 shares during the period. Thurston Springer Miller Herd & Titak Inc. grew its stake in shares of D-Wave Quantum by 428.6% during the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 1,850 shares of the company’s stock worth $44,000 after purchasing an additional 1,500 shares during the period. Castle Rock Wealth Management LLC acquired a new position in shares of D-Wave Quantum during the 2nd quarter worth $213,000. Finally, Evanson Financial LLC purchased a new position in shares of D-Wave Quantum in the 2nd quarter valued at about $214,000. 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.