D-Wave Quantum Inc. (NYSE: QBTS) experienced a notable increase in its stock price, rising by 3.3% on Monday. The company’s shares reached a peak of $26.76 during the trading session and closed at $26.1350. In total, 32,072,717 shares changed hands, reflecting a significant decline of 47% compared to the average trading volume of 60,160,523 shares. The stock had previously settled at $25.29.
Analysts Offer Positive Outlook
A series of recent reports from Wall Street analysts have contributed to the optimistic sentiment surrounding D-Wave Quantum. On September 22, 2023, B. Riley raised its price target on the company’s shares from $22.00 to $33.00, designating it with a “buy” rating. Similarly, Canaccord Genuity Group increased its price target from $20.00 to $41.00 on November 7, 2023, also assigning a “buy” rating.
Further endorsements came from Evercore ISI, which initiated coverage with an “outperform” rating and a price target of $44.00, while Roth Capital set a price objective of $40.00 on November 6, 2023. Benchmark also contributed to the positive outlook, raising its price target from $20.00 to $35.00 on November 10, 2023. Overall, fourteen analysts have rated D-Wave Quantum shares as a “buy,” while one analyst has categorized it as a “hold,” and another as a “sell.” MarketBeat data indicates that the consensus rating for the stock stands at “Moderate Buy” with an average price target of $33.67.
Recent Earnings and Insider Activity
D-Wave Quantum reported its latest earnings results on November 6, 2023, revealing an earnings per share (EPS) of (-$0.05), which surpassed analysts’ expectations of (-$0.07) by $0.02. The company generated revenue of $3.74 million for the quarter, exceeding analyst estimates of $3.03 million. Despite these positive figures, D-Wave Quantum recorded a negative return on equity of 97.58% and a staggering negative net margin of 1,651.81%. Year-over-year, the business saw a remarkable revenue increase of 105.6%.
In terms of insider trading, Chief Financial Officer John M. Markovich sold 100,000 shares on December 22, 2023, at an average price of $30.03, amounting to a total transaction value of $3,003,000. After this sale, Markovich retained 1,471,312 shares valued at approximately $44,183,499.36, representing a 6.36% decrease in his ownership of the company’s stock. This transaction was documented in a filing with the Securities and Exchange Commission (SEC).
Additionally, Director Kirstjen Nielsen sold 7,000 shares on December 3, 2023, for a total of $158,340. Following this sale, Nielsen retained 112,673 shares valued at $2,548,663.26, which constitutes a 5.85% decrease in ownership. Over the past three months, insiders have sold 2,342,087 shares valued at $66,073,024, while insiders collectively hold 3.20% of the company’s stock.
Institutional Investments in D-Wave Quantum
Recent movements among institutional investors reflect growing interest in D-Wave Quantum. Osaic Holdings Inc. increased its stake by 125.7% during the second quarter, acquiring an additional 137,549 shares, bringing its total holdings to 247,004 shares valued at $3,616,000. IFP Advisors Inc. also expanded its position by 123.8%, now owning 14,814 shares valued at $217,000 after adding 8,194 shares in the last quarter.
World Investment Advisors entered the scene by purchasing a new stake valued at approximately $190,000, while Farther Finance Advisors LLC significantly increased its holdings by 491.3%, now owning 16,321 shares worth $239,000. SG Americas Securities LLC also acquired a new position valued at $14,349,000. Currently, institutional investors hold approximately 42.47% of D-Wave Quantum’s stock.
About D-Wave Quantum
Founded in 1999 and headquartered in Burnaby, British Columbia, D-Wave Quantum Inc. specializes in the development of quantum computing systems, software, and services, particularly focusing on quantum annealing technology. The company’s unique processors utilize quantum mechanics to tackle complex optimization and sampling challenges, aiming to create commercially viable quantum hardware and software tools. D-Wave’s offerings include quantum annealers and hybrid solvers that effectively integrate classical and quantum computing resources.
