D-Wave Quantum Inc. (NYSE:QBTS) experienced a significant rise in its stock price, climbing by 11.5% during trading on Wednesday. The shares reached a peak of $25.29 before closing at $25.09. In total, approximately 39.6 million shares changed hands, representing a 36% decline from the average daily trading volume of 62 million shares. The stock had previously closed at $22.50.
Analyst activities have played a crucial role in this positive momentum for D-Wave Quantum. On November 6, Zacks Research upgraded the company’s stock from a “strong sell” to a “hold” rating. Additionally, Stifel Nicolaus began coverage on D-Wave Quantum with a “buy” rating and a price target of $26.00. Benchmark increased its price target from $20.00 to $35.00, also issuing a “buy” recommendation. Meanwhile, Roth Capital set an ambitious target of $40.00.
According to MarketBeat, D-Wave Quantum currently holds a consensus rating of “Moderate Buy,” with an average target price of $29.85. Twelve analysts have rated the stock as a buy, while one has assigned a hold rating and another a sell rating.
Quarterly Earnings and Insider Transactions
D-Wave Quantum recently released its quarterly earnings data on November 6. The company reported an earnings per share (EPS) of ($0.05), surpassing analysts’ expectations of ($0.07) by $0.02. Revenue for the quarter reached $3.74 million, exceeding estimates of $3.03 million. This marks an impressive 105.6% increase in revenue compared to the same quarter last year. Despite these gains, the company reported a negative return on equity of 97.58% and a negative net margin of 1,651.81%. Analysts predict a projected EPS of ($0.41) for the current fiscal year.
In terms of insider transactions, Director Rohit Ghai sold 10,000 shares on September 15 at an average price of $17.93, totaling $179,300. Following this sale, Ghai retained 47,778 shares, valued at approximately $856,659.54. Additionally, Chief Financial Officer John M. Markovich sold 200,000 shares on November 20 at an average price of $22.94, resulting in a transaction value of $4.59 million. Post-sale, Markovich held 1,482,874 shares, with a total value of about $34 million. Over the last ninety days, insiders sold 1,379,813 shares worth approximately $36.9 million.
Institutional Investment Trends
Recent months have seen a shift in institutional investment in D-Wave Quantum. Several hedge funds and institutional investors have adjusted their positions. IFP Advisors Inc. increased its holdings by 123.8% in the second quarter, acquiring an additional 8,194 shares for a total of 14,814 shares valued at $217,000. World Investment Advisors also took a new stake worth $190,000, while Farther Finance Advisors LLC grew its position by 491.3%, acquiring 16,321 shares valued at $239,000.
SG Americas Securities LLC entered a new position valued at about $14.35 million, and Allspring Global Investments Holdings LLC also acquired a new stake valued at approximately $217,000. Overall, institutional investors now hold 42.47% of D-Wave Quantum’s stock.
D-Wave Quantum Inc. specializes in the development and delivery of quantum computing systems, software, and services globally. The company offers products such as the Advantage quantum computer, the Ocean suite of open-source tools, and the Leap cloud service, which provides real-time access to quantum computing resources. As interest in quantum technology continues to grow, D-Wave Quantum is well-positioned to capitalize on emerging opportunities in this evolving market.
