Quantum Computing Stock Plunges Double Digits On $500 Million Share Sale Plan
Sep 23 - Quantum Computing Inc. 
QUBT shares fell about 13% on Monday after the company said it would raise $500 million through a private placement offering, according to a press release. The decline reflected investor concerns over dilution.
The company is set to issue about 26.9 million common shares in an oversubscribed private placement. Funds will be used to support commercialization, pursue acquisitions, and expand sales and engineering capacity, along with other corporate purposes. Such capital raises are common among early-stage technology firms seeking growth.
At the end of the second quarter, Quantum Computing reported $348.8 million in cash. Revenue, however, is expected to remain under $1 million for the year. The firm's market value stood near $3.2 billion, giving it a price-to-sales ratio of more than 11,000, close to a five-year peak.
Is QUBT Stock a Buy?
Based on the one year price targets offered by 3 analysts, the average target price for Quantum Computing Inc is $20.33 with a high estimate of $24.00 and a low estimate of $15.00. The average target implies a upside of +0.61% from the current price of $20.21.
Based on the consensus recommendation from 3 brokerage firms, Quantum Computing Inc's QUBT average brokerage recommendation is currently 2.3, indicating a "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.