Quantum Computing Inc. (QUBT) Stock: Rating Upgrade Drives 21% Rally

TLDR

Table of Contents

Quantum Computing (QUBT) stock surged 21% week-on-week following a rating upgrade from Ascendiant Capital Markets
Ascendiant raised its price target from $14 to $22, representing a 60% upside from Friday’s closing price of $13.70
The company swung to a net income of $16.98 million in Q1 2025 from a $6.4 million loss in the same period last year
Revenue increased 44% to $39,000 in Q1 2025 compared to $27,000 in Q1 2024
Wall Street Zen upgraded the stock from “strong sell” to “hold” rating on May 22nd

Quantum Computing Inc. stock climbed 21% last week after receiving a bullish upgrade from analysts. The rally continued into Tuesday with shares gaining another 13.8% during midday trading.

Ascendiant Capital Markets lifted its price target on QUBT from $14 to $22 while maintaining its “buy” rating. The new target represents a 60% upside from the stock’s Friday closing price of $13.70.

The upgrade came after the company reported better-than-expected quarterly results. QUBT swung to a net income of $16.98 million in the first quarter from a $6.4 million loss in the same period last year.

The turnaround was driven by a $23.6 million non-cash gain on warrant liability valuation. This gain stems from the company’s merger with QPhoton in June 2022.

Revenue growth showed improvement with a 44% increase to $39,000 in Q1 2025. This compared to $27,000 in the first quarter of 2024.

Analyst Sentiment Shifts

Wall Street Zen also upgraded QUBT from “strong sell” to “hold” on May 22nd. The rating changes reflect growing confidence in the quantum computing sector.

Tuesday’s trading session saw heavy volume with 36.1 million shares changing hands. This represents an 82% increase from the average daily volume of 19.9 million shares.

The stock hit a high of $17.59 during the session before settling at $16.32. QUBT now trades above its 50-day moving average of $9.12 and 200-day moving average of $9.49.

$QUBT
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Financial Metrics and Market Position

The company carries a market capitalization of $2.13 billion with a price-to-earnings ratio of -52.17. QUBT’s beta of 3.85 indicates high volatility relative to the broader market.

Quarterly earnings showed mixed results with the company reporting a loss of $0.47 per share. This missed analyst estimates of a $0.05 loss per share by $0.42.

Revenue of $0.06 million fell short of the $0.20 million analyst estimate. Despite the revenue miss, investors focused on the improved bottom line performance.

Insider activity has been active with Director Javad Shabani selling 39,973 shares on May 19th at $11.66 per share. Insider Yuping Huang also sold 500,000 shares at $11.70 per share on the same day.

Company insiders currently own 19.30% of the outstanding shares. Institutional ownership remains light at 4.26% of total shares.

Vanguard Group increased its position by 24% in the first quarter, now holding 5.19 million shares worth $41.5 million. Several hedge funds including Alyeska Investment Group and Anson Funds Management established new positions during the fourth quarter.

The stock’s recent performance places it 13th among the best-performing stocks last week. Trading volume and analyst upgrades suggest continued investor interest in the quantum computing space.

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