D-Wave Quantum Shares Surge 4.4%: Analyst Ratings and Insider Activity
D-Wave Quantum Inc. (NYSE:QBTS) experienced a notable increase in its stock price, rising by 4.4% during mid-day trading on Thursday. The stock reached a high of $28.49 before closing at $27.97. Despite this uptick, trading volume fell significantly, with 30,880,672 shares changing hands, down 50% from the average volume of 61,361,039 shares. The previous closing price was $26.80.
Analysts have responded positively to D-Wave Quantum’s performance, with several upgrades and price target adjustments. Williams Trading set a price target of $35.00 in a research note on November 10. Meanwhile, Canaccord Genuity Group raised their target from $20.00 to $41.00 and assigned a “buy” rating on November 7. Other notable ratings include an upgrade from Wall Street Zen, which moved the stock from a “sell” to a “hold” rating, and Mizuho, which initiated coverage with an “outperform” rating and a target price of $46.00. Currently, thirteen analysts rate the stock as a “buy,” one as a “hold,” and one as a “sell,” leading to an average rating of “Moderate Buy” with a price target of $31.00, according to MarketBeat.com.
In a recent quarterly earnings report released on November 6, D-Wave Quantum reported earnings of ($0.05) per share, exceeding the consensus estimate of ($0.07) by $0.02. The company generated revenue of $3.74 million, outperforming expectations of $3.03 million. Despite these positive figures, the company reported a negative return on equity of 97.58% and a staggering negative net margin of 1,651.81%. Year-over-year, revenue grew by 105.6%, reflecting strong demand for its services.
Insider trading activities also drew attention this week. Rohit Ghai, a director at D-Wave, sold 10,000 shares at an average price of $17.93, totaling $179,300. Following this transaction, Ghai’s stake in the company decreased by 17.31%. Furthermore, CEO Alan E. Baratz sold 806,288 shares at an average price of $28.87, amounting to approximately $23.28 million. This sale represented a 22.35% reduction in Baratz’s ownership in D-Wave. In total, insiders have sold 1,444,813 shares valued at $38.96 million over the past three months, with insiders holding 3.20% of the company’s stock.
Institutional investors have been active in D-Wave Quantum as well. Vanguard Group Inc. increased its holdings by 41.2% in the third quarter, now owning 38,454,869 shares valued at approximately $950.22 million. Similarly, UBS Group AG boosted its stake by an impressive 541.6%, acquiring an additional 10,205,427 shares for a total of 12,089,703 shares valued at around $298.74 million. Other significant investments include Marex Group plc and Arrowstreet Capital Limited Partnership, which each established new stakes valued at approximately $80.07 million and $45.37 million, respectively. Institutional investors now hold 42.47% of D-Wave Quantum’s stock.
D-Wave Quantum Inc. continues to develop innovative quantum computing technologies and services globally. Its offerings include the fifth-generation quantum computer, Advantage, the Ocean suite of open-source Python tools, and Leap, a cloud-based service providing access to live quantum computers and a developer community. As D-Wave Quantum navigates the evolving landscape of quantum computing, investor attention remains focused on its growth potential and market positioning.
