D-Wave Quantum Inc. (NYSE: QBTS) experienced a significant stock increase of 3.3% on Monday, reaching a peak of $26.76 before closing at $26.1350. A total of 32,072,717 shares changed hands during the trading session, marking a 47% decrease from the average volume of 60,160,523 shares. The stock had previously closed at $25.29.
Analysts have been actively assessing D-Wave’s performance, with various research reports highlighting the company’s potential. Notably, B. Riley raised their price target from $22.00 to $33.00 and maintained a “buy” rating. Similarly, Canaccord Genuity Group elevated their price target from $20.00 to $41.00, also issuing a “buy” rating. Other firms, including Evercore ISI, which set an “outperform” rating with a price target of $44.00, and Roth Capital, which assigned a price objective of $40.00, have contributed to a generally optimistic outlook.
According to data from MarketBeat, D-Wave Quantum holds a consensus rating of “Moderate Buy” from analysts, with an average price target of $33.67. Out of the total ratings, fourteen analysts have given a “buy” recommendation, while one has suggested a “hold” and another a “sell.”
Financial Performance and Insider Activity
D-Wave Quantum released its latest earnings figures on November 6, reporting earnings per share (EPS) of ($0.05), surpassing analysts’ expectations of ($0.07) by $0.02. The company posted revenue of $3.74 million, exceeding the anticipated $3.03 million. Despite showing a year-over-year revenue increase of 105.6%, D-Wave reported a negative return on equity of 97.58% and a net margin of 1,651.81%. Analysts project that the company will report an EPS of ($0.41) for the current financial year.
In related developments, Chief Financial Officer John M. Markovich sold 100,000 shares on December 22 at an average price of $30.03, amounting to a total of $3,003,000. Following this transaction, he retains 1,471,312 shares valued at approximately $44,183,499.36, reflecting a 6.36% reduction in his ownership. This sale was disclosed in a filing with the Securities and Exchange Commission.
Additionally, Kirstjen Nielsen, a director at D-Wave, sold 7,000 shares on December 3 at an average price of $22.62, totaling $158,340. Her current holdings stand at 112,673 shares, valued at approximately $2,548,663.26, a decrease of 5.85% in her stake.
Over the past three months, insiders have sold 2,342,087 shares valued at $66,073,024. Currently, insiders own 3.20% of the company’s stock.
Institutional Investment Trends
Recent trends indicate that several institutional investors have adjusted their positions in D-Wave Quantum. Osaic Holdings Inc. increased its holdings by 125.7% during the second quarter, acquiring an additional 137,549 shares, bringing its total to 247,004 shares valued at $3,616,000. Similarly, IFP Advisors Inc. raised its stake by 123.8%, now holding 14,814 shares worth $217,000 after purchasing 8,194 shares in recent months.
Other notable institutional activities include World Investment Advisors, which purchased a new stake valued at approximately $190,000, and Farther Finance Advisors LLC, which increased its position by 491.3%, now owning 16,321 shares valued at $239,000. Currently, institutional investors collectively hold 42.47% of D-Wave Quantum’s stock.
D-Wave Quantum Inc., headquartered in Burnaby, British Columbia, focuses on the development of quantum computing systems, software, and services, particularly leveraging quantum annealing technology. Founded in 1999 by physicists including Geordie Rose, the company aims to create commercially viable quantum hardware to address complex optimization and sampling challenges. Its product range includes quantum annealers and hybrid solvers that integrate classical and quantum computing capabilities.
