D-Wave Quantum Sees Spike in Unusual Options Trading Activity

D-Wave Quantum Inc. (NYSE:QBTS) experienced a notable surge in options trading on Wednesday, signaling investor interest. A total of 100,953 call options were purchased, reflecting an 80% increase over the usual daily volume of 55,949 options.

Analysts Provide Insights

In recent coverage, several financial analysts have weighed in on D-Wave Quantum stock. For instance, B. Riley raised its price target from $9.00 to $11.00 and maintained a 'buy' rating in a report released on February 14. Similarly, Craig Hallum increased its price forecast from $2.50 to $9.00 while giving the stock a 'buy' rating on December 20. Needham & Company LLC reaffirmed a 'buy' rating along with a price target of $2.25 on November 15. On January 14, Benchmark reiterated its 'buy' rating and set a price goal of $8.00. Additionally, Roth MKM elevated its price target from $3.00 to $7.00 with a 'buy' recommendation on December 12. Currently, six analysts have assigned a 'buy' rating to QBTS, resulting in a consensus rating of 'Buy' and an average price target of $6.71 according to MarketBeat.

D-Wave Quantum Insider Transactions

Regarding insider activities, D-Wave Quantum has seen some noteworthy transactions. Sector Pension Investme Public, a significant shareholder, sold 8,437,593 shares on December 12 for an average price of $4.21, totaling approximately $35.5 million. Post-transaction, this shareholder retains 1,000,000 shares valued at around $4.21 million, representing a reduction of 89.40%. Also, CEO Alan E. Baratz sold 8,372 shares at an average price of $5.27 on January 23, translating to a value of $44,120. Following this sale, Baratz's direct ownership decreased by 0.36%, leaving him with about 2.34 million shares valued at approximately $12.34 million. Over the last ninety days, company insiders have offloaded 20,152,665 shares worth $92.1 million, with insider ownership now at 7.22%.

Institutional Investment Trends

Notably, institutional investors and hedge funds have been active in trading D-Wave Quantum shares. Vanguard Group Inc. increased its stake by 103.7% in the fourth quarter, now holding 7,118,322 shares worth around $59.8 million after acquiring an additional 3,624,407 shares. Likewise, Penserra Capital Management LLC grew its position by 23.0%, owning 4,485,777 shares valued at $4.4 million after buying an additional 839,942 shares in the third quarter. Geode Capital Management LLC also increased its stake by 16.4% in the fourth quarter, now owning 2,974,395 shares worth about $25 million after purchasing 418,468 shares. Bank of America Corp DE saw exponential growth with a 4,912.4% increase, securing 2,548,099 shares valued at $21.4 million after acquiring 2,497,263 shares. Additionally, UNICOM Systems Inc. bought a new stake valued at roughly $20.3 million. Collectively, institutional investors hold approximately 42.47% of the company's stock.

D-Wave Quantum Stock Performance

The stock for D-Wave Quantum opened at $7.42 on Friday, demonstrating a 13.4% increase. Over the past year, the shares have fluctuated between a low of $0.75 and a high of $11.41. Currently, the stock's 50-day simple moving average stands at $6.77, while the 200-day average is $3.30, resulting in a market capitalization of $2.00 billion, a P/E ratio of -17.65, and a beta of 1.10.

Company Overview

D-Wave Quantum Inc. specializes in the development and delivery of quantum computing systems, software, and services globally. The company offers various products, including the fifth-generation quantum computer called Advantage, a suite of open-source Python tools under Ocean, and Leap, a cloud-based service that provides real-time access to a live quantum computer and related resources.

D-Wave, Options, Trading