TLDR
- Quantum Computing Inc. (QUBT) stock surged 15.81% on Friday to close at $13.70 following an analyst upgrade
- Ascendiant Capital Markets raised its price target from $14 to $22 while maintaining a “buy” rating
- The new price target represents a 60.6% upside from the closing price
- First quarter revenue increased 44% to $39,000, though the company swung to net income primarily due to warrant liability gains
- Wall Street Zen upgraded shares from “strong sell” to “hold” rating in May
Quantum Computing Inc. (QUBT) Stock experienced a sharp rally on Friday, climbing 15.81% to close at $13.70. The surge came after Ascendiant Capital Markets upgraded its price target on the stock.
Ascendiant Capital Markets maintained its “buy” recommendation while raising the price target to $22 from $14. This represents a 60.6% upside from the stock’s Friday closing price.
The stock traded as high as $13.85 during the session. Trading volume reached 17.17 million shares, down 12% from the average session volume of 19.51 million shares.
The company’s first quarter results showed mixed performance. Revenue rose 44% to $39,000 from $27,000 in the same period last year.
The company swung to a net income of $16.98 million from a $6.4 million loss the previous year. However, this was primarily driven by a $23.6 million non-cash gain on warrant liability valuation.
This gain resulted from the company’s merger with QPhoton in June 2022. The mark-to-market adjustment created the substantial income swing.
Recent Rating Changes
Wall Street Zen also upgraded shares in May. The firm moved its rating from “strong sell” to “hold” on May 22nd.
These upgrades come as the quantum computing sector continues to attract investor attention. The company operates in integrated photonics and quantum computing systems.
Insider Activity and Institutional Moves
Recent insider selling has been notable at the company. Director Javad Shabani sold 39,973 shares on May 19th at an average price of $11.66.
The transaction totaled $466,085. Insider Yuping Huang sold 200,000 shares in March at $8.48 per share for $1.696 million.
Over the past 90 days, insiders sold 739,973 shares worth $8.01 million total. Company insiders own 19.30% of the stock.
Several hedge funds have taken new positions. Hollencrest Capital Management boosted its holdings by 60% in the first quarter.
Tower Research Capital LLC TRC bought a new position worth $30,000 in the fourth quarter. IFP Advisors Inc and Farther Finance Advisors LLC each bought positions valued at $33,000.
Stock Performance Metrics
The stock’s 50-day moving average sits at $8.84. Its 200-day moving average is $9.32.
The company has a market cap of $1.93 billion. It trades with a beta of 3.74, indicating high volatility relative to the broader market.
The stock carries a P/E ratio of -47.24. Institutional investors own 4.26% of the company’s stock.
In the most recent quarterly earnings, the company reported a loss of $0.47 per share. This missed analyst estimates of a $0.05 loss by $0.42 per share.
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