D-Wave Quantum (QBTS) Surges Nearly 13% on CEO Summit Anticipation

Key Takeaways

• Shares advanced approximately 12.9% as market participants positioned themselves before CEO Dr. Alan Baratz’s appearance at the Semafor World Economy summit
• Broader quantum computing sector strength, triggered by geopolitical developments and Rigetti’s new hardware announcement, provided additional momentum
• Wall Street consensus stands at “Moderate Buy” with an average target of $36.50, though several firms recently reduced forecasts
• The company’s latest quarterly report disappointed expectations — posting EPS of ($0.09) versus ($0.05) forecast, with revenue at $2.75M against $3.74M projections
• Company insiders have reduced holdings, selling 72,898 shares totaling roughly $1.75M in the past quarter

---

D-Wave Quantum (QBTS) posted significant gains in today’s trading, advancing up to 12.9% on a combination of catalyst-driven enthusiasm and positive sector dynamics.

D-Wave Quantum Inc., QBTS

The principal driver appears to be anticipation surrounding CEO Dr. Alan Baratz’s scheduled presentation at the Semafor World Economy summit, where he’s slated to address commercial quantum-AI implementations and recent technological achievements. Market participants have been building positions in advance of this event.

However, the rally extends beyond company-specific news. The quantum computing sector experienced broad-based strength following geopolitical developments related to a ceasefire announcement. Additionally, a sympathetic reaction to competitor Rigetti’s significant hardware unveiling provided further support for QBTS shares.

The stock reached an intraday peak of $14.79 on Monday before closing near $14.67, representing a gain from the previous session’s $14.25 finish. Trading activity registered approximately 16.3 million shares, falling roughly 41% short of typical volume levels.

Despite Monday’s positive performance, QBTS continues trading beneath both its 50-day moving average at $17.53 and its 200-day moving average of $24.61. On a year-to-date basis, shares remain underwater by nearly 44%.

Wall Street’s View on QBTS

The analyst community maintains a moderately optimistic outlook. Fourteen analysts have assigned Buy ratings to QBTS, while two maintain Sell recommendations, resulting in a consensus “Moderate Buy” classification. The mean price objective stands at $36.50 — representing potential upside of more than 100% from current levels.

However, recent weeks saw multiple firms adjust their expectations downward. Roth MKM reduced its target from $40 to $30, Mizuho lowered projections from $46 to $40, and Needham decreased its forecast from $48 to $40. Benchmark maintained its Buy stance with a $35 price objective. Zacks Research took a more bearish position, issuing a “Strong Sell” rating in March.

Quarterly Performance and Insider Activity

D-Wave’s latest earnings report, delivered on February 26th, fell short of Wall Street expectations across key metrics. The company posted earnings per share of ($0.09), missing analyst projections of ($0.05). Top-line performance also disappointed, with revenue reaching $2.75M compared to the $3.74M consensus, despite representing 21.7% year-over-year growth.

The firm’s financials reflect ongoing challenges, including a negative return on equity of 58.58% and a net margin of -1,444.10%.

Regarding insider transactions, two board members reduced their positions in March. Director Rohit Ghai divested 10,000 shares at $17.62 each, while Director John Dilullo sold 8,000 shares at $18.01 apiece. Cumulatively, corporate insiders have disposed of 72,898 shares valued at approximately $1.75M during the past three-month period.

Conversely, institutional investors have demonstrated increasing interest. AQR Capital Management expanded its QBTS holdings by 201% during Q1. Royal Bank of Canada boosted its position by 59.8%. Institutional shareholders collectively control 42.47% of outstanding shares.

Analyst projections call for full-year EPS of ($0.41) for the current fiscal period.

The post D-Wave Quantum (QBTS) Surges Nearly 13% on CEO Summit Anticipation appeared first on Blockonomi.

Source: https://blockonomi.com/d-wave-quantum-qbts-surges-nearly-13-on-ceo-summit-anticipation/