TLDR
- QBTS jumped ~12.9% as traders positioned ahead of CEO Dr. Alan Baratz’s presentation at the Semafor World Economy summit
- A sector-wide rally following a geopolitical ceasefire and a sympathy bounce from Rigetti’s hardware launch added fuel
- Analysts maintain a consensus “Moderate Buy” rating with a $36.50 price target despite recent target cuts
- QBTS missed its last quarterly earnings â EPS of ($0.09) vs ($0.05) expected, revenue of $2.75M vs $3.74M estimated
- Insiders have been net sellers, offloading 72,898 shares worth ~$1.75M over the past three months
D-Wave Quantum (QBTS) is having a strong session, climbing as much as 12.9% as a mix of event-driven momentum and broader sector tailwinds push the stock higher.
The primary catalyst appears to be CEO Dr. Alan Baratz’s upcoming presentation at the Semafor World Economy summit, where he is expected to discuss commercial quantum-AI applications and recent technical milestones. Traders have been positioning ahead of the event.
The move doesn’t exist in a vacuum, though. A sector-wide rally â sparked by a geopolitical ceasefire â lifted quantum stocks broadly. A sympathy bounce following rival Rigetti’s major hardware launch also helped carry QBTS higher.
The stock traded as high as $14.79 on Monday before settling around $14.67, up from a prior close of $14.25. Volume came in at around 16.3 million, roughly 41% below the average session volume.
Despite the day’s gain, QBTS is still trading well below both its 50-day moving average of $17.53 and its 200-day moving average of $24.61. Year-to-date, the stock is still down nearly 44%.
Analyst Targets and Ratings
Analyst sentiment remains cautiously positive. Fourteen analysts have a Buy rating on QBTS, with two holding Sell ratings, giving it a consensus “Moderate Buy.” The average price target sits at $36.50 â more than double the current price.
That said, several firms trimmed their targets in late February. Roth MKM cut from $40 to $30, Mizuho from $46 to $40, and Needham from $48 to $40. Benchmark held its Buy with a $35 target. Zacks went further, downgrading to “Strong Sell” in March.
Earnings Miss and Insider Selling
D-Wave’s most recent quarterly results, reported February 26th, came in below expectations on both the top and bottom lines. EPS landed at ($0.09), missing the ($0.05) consensus. Revenue came in at $2.75M versus the $3.74M estimate, though it was up 21.7% year-over-year.
The company carries a negative return on equity of 58.58% and a net margin of -1,444.10%.
On the insider front, two directors sold stock in March. Director Rohit Ghai sold 10,000 shares at $17.62, while Director John Dilullo sold 8,000 shares at $18.01. In total, insiders have sold 72,898 shares valued at approximately $1.75M over the past three months.
Institutional investors, however, have been moving in the other direction. AQR Capital Management grew its QBTS position by 201% in Q1. Royal Bank of Canada increased its stake by 59.8%. Institutional ownership currently stands at 42.47%.
Analysts forecast full-year EPS of ($0.41) for the current fiscal year.
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