PSP Investments Reduces Stake in D-Wave Stock (QBTS) as Analyst Doubles Price Target

The Public Sector Pension Investment Board (PSP Investments) has recently sold a substantial portion of its D-Wave Systems stock (NYSE: QBTS), signalling a strategic approach to the volatility being seen in the stock market.

Recent filings show that PSP, a prominent Canadian pension investment manager, offloaded 19,672,558 shares over the past three trading sessions, almost half of the 40,057,252 shares exchanged on Jan 10th.

This series of sales comes in the context of significant volatility in D-Wave's stock value. Over the past twelve months, D-Wave's stock price has increased by 556%, with the last month seeing a significant 34% pullback. The sell down from PSP continues the pattern from December, where more than $80 million worth of shares were sold between the 10th to the 20th of the month. With converted holdings remaining of 20,384,694 shares, the selling pressure from PSP at least could soon be coming to a close, even if broader pressures may persist.

Operationally, the company has been making progress, with the firm disclosing a 120% increase in bookings for its fiscal year 2024, which amounts to more than $23 million. The first customer purchase of a D-Wave Advantage system was also announced as a potentially pivotal moment.

Financial analysts from Roth MKM, Benchmark, B Riley and Craig-Hallum have updated their targets for D-Wave's stock price. Benchmark increased its price target from $3.00 to $8.00, while Craig-Hallum raised theirs from $2.50 to $9.00. Roth MKM raised to $7 (from $3), with the most recent adjustment coming from B Riley in yesterday's session. The firm doubled their previous target of $4.50 to $9, seeing D Wave holding “clearly visible commercial uptake” and being positioned as a “differentiated tile in the quantum mosaic” .

These developments underscore the dynamic shifts within D-Wave Quantum and reflect broader market conditions influencing investment strategies for major stakeholders such as PSP Investments. The ongoing adjustments in shareholding positions highlight the careful considerations investors must undertake in a rapidly evolving financial environment.