Shares of D-Wave Quantum Inc. (NASDAQ:QBTS – Get Free Report) traded down 2.6% during mid-day trading on Tuesday. The company traded as low as $13.28 and last traded at $13.38. 11,616,500 shares traded hands during mid-day trading, a decline of 56% from the average session volume of 26,410,229 shares. The stock had previously closed at $13.74.
Key D-Wave Quantum News
Here are the key news stories impacting D-Wave Quantum this week:
- Positive Sentiment: D-Wave signed a new multi-year agreement with SkyWater to continue specialized semiconductor process development and manufacturing for future generations of its superconducting quantum-computing technology. The agreement strengthens D-Wave’s supply-chain and production capabilities, but the companies did not disclose financial terms or expected revenue. SkyWater and D-Wave Extend Quantum Manufacturing Collaboration Through Multi-Year Agreement
- Positive Sentiment: The manufacturing announcement has placed D-Wave among quantum-computing companies attracting investor interest as partnerships, product initiatives and other October deals support the sector’s longer-term commercialization narrative. 3 Quantum Computing Stocks in the Limelight After October Deals
- Neutral Sentiment: Coverage comparing D-Wave with other emerging technology companies highlights that it already generates revenue from hybrid quantum systems and cloud services. However, the reports provide limited new information about bookings, profitability or the pace of revenue growth.
- Neutral Sentiment: A reported $350 million U.S. Department of Defense quantum initiative could expand government demand for the industry, but current coverage suggests IonQ and a DARPA benchmarking program may be better positioned to capture the near-term benefit. The revenue impact for D-Wave remains uncertain. The Pentagon’s $350 Million Quantum Push
- Negative Sentiment: D-Wave shares declined alongside other quantum stocks after IonQ’s proposed $1.3 billion all-stock acquisition of cybersecurity company Elisity triggered concerns about valuation, strategic focus and dilution across the sector. IonQ Sinks 9% on All-Stock Elisity Deal
- Negative Sentiment: A securities law firm announced an investigation into potential federal securities-law violations involving D-Wave. The announcement is only an allegation and does not establish wrongdoing, but it adds headline and litigation risk for investors. QBTS Investigation Announcement
Analyst Ratings Changes
A number of brokerages have recently commented on QBTS. Mizuho raised their price target on D-Wave Quantum from $29.00 to $35.00 and gave the company an “outperform” rating in a report on Monday, June 15th. Zacks Research cut shares of D-Wave Quantum from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 18th. Roth Capital reaffirmed a “buy” rating and issued a $30.00 price target on shares of D-Wave Quantum in a research note on Thursday, August 6th. Canaccord Genuity Group set a $35.00 price objective on shares of D-Wave Quantum in a report on Thursday, August 6th. Finally, Wedbush initiated coverage on D-Wave Quantum in a research report on Monday, August 3rd. They issued an “outperform” rating and a $40.00 target price for the company. Thirteen equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $36.27.
D-Wave Quantum Price Performance
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’s 50 day moving average price is $17.75 and its 200-day moving average price is $19.75. The company has a market cap of $4.95 billion, a price-to-earnings ratio of -18.85 and a beta of 2.18.
D-Wave Quantum (NASDAQ:QBTS – Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.10) EPS for the quarter, missing the consensus estimate of ($0.08) by ($0.02). The business 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 on a year-over-year basis. During the same period in the prior year, the company earned ($0.08) earnings per share. On average, equities research analysts forecast that D-Wave Quantum Inc. will post -0.46 earnings per share for the current fiscal year.
Insider Activity at D-Wave Quantum
In other news, VP Sophie Ames sold 3,070 shares of the stock in a transaction on Monday, July 20th. The stock was sold at an average price of $16.95, for a total transaction of $52,036.50. Following the completion of the sale, the vice president owned 589,009 shares in the company, valued at approximately $9,983,702.55. This represents a 0.52% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.30% of the company’s stock.
Institutional Investors Weigh In On D-Wave Quantum
Several hedge funds have recently modified their holdings of the stock. BlackRock Inc. acquired a new stake in D-Wave Quantum during the second quarter valued at $795,206,000. Bank of America Corp DE bought a new stake in shares of D-Wave Quantum during the 2nd quarter worth $104,183,000. Bank of New York Mellon Corp acquired a new stake in shares of D-Wave Quantum in the second quarter valued at about $54,951,000. Wellington Management Group LLP increased its position in D-Wave Quantum by 372.2% in the 2nd quarter. Wellington Management Group LLP now owns 1,820,070 shares of the company’s stock worth $43,663,000 after buying an additional 1,434,657 shares during the period. Finally, Van ECK Associates Corp increased its position in D-Wave Quantum by 52.6% during the second quarter. Van ECK Associates Corp now owns 2,339,788 shares of the company’s stock worth $56,132,000 after acquiring an additional 806,835 shares during the period. 42.47% of the stock is owned by hedge funds and other institutional investors.
D-Wave Quantum Company Profile
D-Wave Quantum Inc is a quantum-computing company that develops and delivers quantum systems, software and cloud-based services for commercial, government and research customers. The company focuses on quantum annealing, an approach designed to address complex optimization problems, and is also developing gate-model quantum-computing capabilities.
Its offerings include D-Wave quantum computers, the Leap quantum cloud service, and the Ocean software development kit. Through these products, customers can access quantum hardware, build and test applications, and combine quantum processing with classical computing through hybrid solvers.
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