Shares of D-Wave Quantum Inc. (NYSE: QBTS) skyrocketed 47.4% on Friday after Roth Mkm raised its price target on the stock from $7.00 to $10.00, maintaining a “Buy” rating. The quantum computing pioneer saw its stock trade as high as $9.85 before settling at $9.76, reflecting a sharp increase from its prior close of $6.91. Trading volume surged 45% above average, with 112.4 million shares changing hands.
Bullish Analyst Sentiment Fuels Rally
Several other analysts echoed Roth Mkm’s optimism:
- Benchmark reiterated its “Buy” rating with a price target of $8.00.
- B. Riley boosted its price target from $11.00 to $12.00, citing strong market positioning.
- Needham & Company LLC maintained a “Buy” rating with a $8.50 target.
- Craig Hallum raised its price objective from $2.50 to $9.00, emphasizing D-Wave’s technological advancements.
According to MarketBeat.com, six analysts currently rate QBTS as a “Buy,” with an average price target of $8.42.
Insider Transactions Signal Confidence
D-Wave Quantum has also seen significant insider activity in recent months:
- Sector Pension Investment Board reduced its holdings by 7.28 million shares, selling at an average price of $4.07.
- CEO Alan Baratz sold 8,372 shares at an average price of $5.27.
- Insiders collectively sold 11.07 million shares worth $53.4 million in the last 90 days, yet insiders still own 7.22% of the company.
Institutional Investors Strengthen Positions
Institutional investors have also increased their stakes in D-Wave Quantum:
- Fourth Dimension Wealth LLC acquired a new position valued at $26,000.
- PNC Financial Services Group Inc. initiated a position worth $38,000.
- Heritage Wealth Advisors and Kingsview Wealth Management LLC also entered the stock, with holdings of $67,000 and $84,000, respectively.
- Summit Investment Advisors Inc. boosted its holdings by 20.6%, now owning 10,347 shares.
Overall, hedge funds and institutional investors now own 42.47% of the company’s stock, signaling strong interest in its growth potential.
D-Wave Quantum’s Market Performance
D-Wave Quantum’s current market cap stands at $2.74 billion, with a negative price-to-earnings (P/E) ratio of -24.25, reflecting its early-stage growth phase. The company’s 50-day moving average is $6.07, while its 200-day moving average sits at $3.86, indicating a strong upward momentum.
With multiple analysts raising their price targets and increasing investor confidence, D-Wave Quantum remains one of the most closely watched stocks in the quantum computing sector.
