Wall Street Zen Downgrades D-Wave Quantum (NYSE:QBTS) to Sell

D-Wave Quantum (NYSE:QBTS) was downgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research report issued on Saturday.

Several other research analysts have also issued reports on QBTS. Needham & Company LLC restated a “buy” rating and issued a $48.00 price target on shares of D-Wave Quantum in a research report on Thursday, January 29th. Roth Mkm set a $40.00 price objective on D-Wave Quantum in a research note on Thursday, November 6th. Zacks Research raised D-Wave Quantum from a “strong sell” rating to a “hold” rating in a research report on Thursday, November 6th. Canaccord Genuity Group set a $43.00 target price on D-Wave Quantum in a report on Thursday, January 29th. Finally, Evercore assumed coverage on D-Wave Quantum in a research note on Wednesday, December 3rd. They issued an “outperform” rating and a $44.00 price target on the stock. Thirteen research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, D-Wave Quantum has an average rating of “Moderate Buy” and an average target price of $38.21.

D-Wave Quantum Price Performance

Shares of D-Wave Quantum stock opened at $20.70 on Friday. D-Wave Quantum has a 52 week low of $4.45 and a 52 week high of $46.75. 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 stock has a market cap of $7.66 billion, a PE ratio of -15.33 and a beta of 1.56. The company’s 50-day moving average price is $26.18 and its two-hundred day moving average price is $24.74.

D-Wave Quantum (NYSE:QBTS) last announced its quarterly earnings data on Thursday, November 6th. The company reported ($0.05) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.02. D-Wave Quantum had a negative net margin of 1,651.81% and a negative return on equity of 97.58%. The company had revenue of $3.74 million for the quarter, compared to analysts’ expectations of $3.03 million. The company’s quarterly revenue was up 105.6% compared to the same quarter last year. As a group, sell-side analysts anticipate that D-Wave Quantum will post -0.41 EPS for the current fiscal year.

Insider Activity

In other D-Wave Quantum news, CFO John M. Markovich sold 200,000 shares of D-Wave Quantum stock in a transaction dated Thursday, November 20th. The stock was sold at an average price of $22.94, for a total transaction of $4,588,000.00. Following the transaction, the chief financial officer owned 1,482,874 shares of the company’s stock, valued at $34,017,129.56. The trade was a 11.88% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Alan E. Baratz sold 806,288 shares of the company’s stock in a transaction dated Tuesday, November 11th. The shares were sold at an average price of $28.87, for a total value of $23,277,534.56. Following the completion of the transaction, the chief executive officer owned 2,801,265 shares in the company, valued at $80,872,520.55. This represents a 22.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 2,346,916 shares of company stock worth $65,591,314. 3.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. GAMMA Investing LLC lifted its position in D-Wave Quantum by 34.6% in the 3rd quarter. GAMMA Investing LLC now owns 1,874 shares of the company’s stock worth $46,000 after buying an additional 482 shares in the last quarter. Blue Bell Private Wealth Management LLC increased its stake in shares of D-Wave Quantum by 5.3% in the third quarter. Blue Bell Private Wealth Management LLC now owns 9,901 shares of the company’s stock worth $245,000 after acquiring an additional 500 shares during the last quarter. Huntington National Bank increased its stake in shares of D-Wave Quantum by 17.9% in the third quarter. Huntington National Bank now owns 3,300 shares of the company’s stock worth $82,000 after acquiring an additional 500 shares during the last quarter. bLong Financial LLC raised its holdings in shares of D-Wave Quantum by 2.3% during the second quarter. bLong Financial LLC now owns 24,643 shares of the company’s stock worth $361,000 after acquiring an additional 551 shares in the last quarter. Finally, Sigma Planning Corp boosted its position in D-Wave Quantum by 3.6% during the fourth quarter. Sigma Planning Corp now owns 16,329 shares of the company’s stock valued at $431,000 after purchasing an additional 560 shares during the last quarter. 42.47% of the stock is owned by hedge funds and other institutional investors.

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.