PSP Investment Board Significantly Reduces Stake in QBTS with Over 19 Million Shares Sold in December.

QBTS Sees Significant Insider Trading Activity as Public Sector Pension Investment Board Sells Major Holdings

In a notable series of transactions, the Public Sector Pension Investment Board (PSP Investment Board), a major institutional holder in QBTS, has significantly reduced its stake in the company over the last month. The insider trading activity, as documented, reveals a substantial offloading of shares amounting to over 19 million in December 2024 alone.

According to the data, on December 12, PSP Investment Board executed a sale of 18,374,059 shares, with a sale price ranging between $4.12 and $4.87 per share, totaling approximately $77.9 million. Following this, an additional 1,000,000 shares were sold on December 20 at $6.68 per share, yielding $6.67 million. These transactions form part of a broader trend of insider selling by the PSP Investment Board, consistent with their past actions this year.

This move aligns with a larger trend that can be observed over the past year. While the company has seen some stock award grants issued to various directors and executives, the scale and value of the sales by the PSP Investment Board dwarf these grants. Additionally, in the first half of the year, the PSP Investment Board made sales, such as the June 4 transaction involving 111,938 shares at prices between $1.26 and $1.35, which amounted to $145,027.

The insider trading activity indicates a net sale of shares, contributing to an overall trend of net shares sold by insiders in the past twelve months. With 19 total insider transactions recorded over this period, the activities predominantly point towards liquidity events rather than accumulation.

Institutional ownership of QBTS continues to be robust with institutions holding 55.4% of the company's shares. PSP Investment Board remains a dominant force even after recent sales, though their reduction of shares suggests possible shifts in investment strategy or portfolio adjustments. The data shows that institutions like Goldman Sachs Group Inc and Lockheed Martin Corp. hold significant, albeit smaller, stakes in QBTS.

It's important for investors to consider these insider activities as it can often reflect confidence levels of those with the most intimate knowledge of the company's potential. While insider selling doesn't always signal adverse developments, the high volume and frequency of these sales are noteworthy for stakeholders tracking QBTS's financial health and market trajectory. The company and its shareholders might need to watch for further insider activity as it could provide insights into the future movements and valuation of QBTS in the marketplace.