Quantum Computing Inc. (NASDAQ:QUBT) has seen a significant surge in its stock price following an analyst upgrade from Ascendiant Capital Markets. The stock experienced a 12.3% increase during Friday's mid-day trading session. This positive momentum is largely attributed to Ascendiant raising their price target for QUBT from $14.00 to $22.00, accompanied by a maintained 'buy' rating.
The stock reached a high of $13.85 during the trading day, eventually settling at $13.29. Trading volume remained robust, with 17,165,425 shares exchanging hands, although this represented a 12% decrease from the average daily volume of 19,508,307 shares. Prior to this surge, QUBT closed at $11.83.
Analyst Sentiment Shifts
Ascendiant Capital Markets wasn't the only firm adjusting its perspective on Quantum Computing. Wall Street Zen also upgraded its rating on QUBT, moving from a 'strong sell' to a 'hold' rating in a research report issued on May 22nd.
Insider Trading Activity
Recent insider trading activity reveals significant sales of QUBT stock. Director Javad Shabani sold 39,973 shares on May 19th at an average price of $11.66, totaling $466,085.18. Furthermore, insider Yuping Huang sold a substantial 500,000 shares on the same day at an average price of $11.70, amounting to $5,850,000.00. Following this transaction, Huang directly owns 21,236,906 shares, valued at approximately $248,471,800.20, representing a 2.30% decrease in their holdings. Over the last quarter, insiders collectively sold 739,973 shares, valued at $8,012,085. It's worth noting that insiders still own 19.30% of the company's stock.
Hedge Funds Adjust Positions
Institutional investors are also making moves in QUBT. Alyeska Investment Group L.P. is among several large investors that have recently adjusted their positions in the company.
The stock has rallied by 21 percent week-on-week as investors gobbled up shares in the company after earning a rating upgrade from an investment firm.
In the first quarter of the year, Quantum Computing Inc. swung to a net income attributable to shareholders of $16.98 million from a $6.4 million net loss in the same period last year, primarily driven by a $23.6 million non-cash gain on the mark-to-market valuation of the company’s warrant liability as a result of its merger with QPhoton in June 2022.