Insiders at IonQ, Inc. (NYSE:IONQ), Rigetti Computing, Inc. (NASDAQ:RGTI), and D-Wave Quantum Inc. (NYSE:QBTS), the three largest pure-play quantum computing companies trading on US markets, have sold approximately $863 million more of their own stock than they have purchased over the last three years combined. The figure, as per an analysis of Form 4 filings cited by The Motley Fool, comes with an important caveat: insider buying across the trio has been nearly nonexistent over that time.
A Contrast With Stock Performance
The insider-selling tendency contrasts sharply with how the stocks have performed for outside investors. IonQ, Inc. (NYSE:IONQ), Rigetti Computing, Inc. (NASDAQ:RGTI), and D-Wave Quantum Inc. (NYSE:QBTS) have all recorded exponential increases in the last two years, with some metrics showing trailing 12-month returns as much as 6,200% at their peak enthusiasm. However, insiders have remained substantial net sellers during much of the rally, while open-market purchases have been comparatively limited
The Valuation Case
The most straightforward justification for the caution is value. As of August 28, IonQ, Inc. (NYSE:IONQ), Rigetti Computing, Inc. (NASDAQ:RGTI), and D-Wave Quantum Inc. (NYSE:QBTS) had price-to-sales ratios of 68.87, 406.82, and 532.38, respectively, levels that have previously proven unsustainable for companies at the heart of key advances in technology. Almost every well-marketed innovation has had an early-stage bubble burst event, usually because investors overestimate how quickly a technology will be adopted or commercially optimized. Based on that assessment, quantum computing is still a long way from broad use or business-ready optimization, despite continued investment in the sector.
Improving Fundamentals
The insider-selling data doesn’t tell the whole story, because the fundamentals of all three companies actually improved in 2026. IonQ, Inc. (NYSE:IONQ) reported second-quarter revenue of $80.1 million, up 287% year-over-year, and upped its full-year 2026 revenue projection to a range of $280 million to $290 million, with remaining performance obligations and contracted revenue not yet recognized totaling $485 million. D-Wave Quantum Inc. (NYSE:QBTS)’s first-half bookings increased 1,120% year-over-year, with production applications accounting for 37.3% of its first-half cloud-services revenue. Rigetti Computing, Inc. (NASDAQ:RGTI), the smallest of the three in terms of revenue, has been working on a 108-qubit hardware roadmap while also pursuing government financing, including a prospective Department of Commerce effort worth up to $100 million over three years related to CHIPS Act infrastructure.
Smart Money Sentiment
Institutional positioning differed between the three names. Between the first and second quarters of 2026, hedge fund ownership at IonQ, Inc. (NYSE:IONQ) and Rigetti Computing, Inc. (NASDAQ:RGTI) increased from 39 to 42 and 29 to 34, respectively. D-Wave Quantum Inc. (NYSE:QBTS) swung in the opposite direction, with hedge fund ownership falling from 26 to 17 during the same period, a significant drop despite the firm reporting the best year-over-year bookings increase of the three.
The Bull Case
The argument for these companies is based on the premise that 2026’s improved fundamentals represent a valid turning point rather than mere hype. IonQ’s 287% revenue growth and increased guidance, D-Wave’s 1,120% bookings surge and rising share of production, and Rigetti’s hardware roadmap and potential government funding all point to increasing commercial validation of quantum computing as a monetizable technology rather than a speculative one. Insider selling, while significant, is also prevalent in fast-growing technological companies with heavily stock-based pay, and it doesn’t always indicate a lack of faith in the long-term opportunity.
The Bear Case
That said, the near-complete absence of insider buying over three years, a pattern that is more difficult to dismiss than the overall number of sales, implies that the people with the best visibility into these companies have not taken advantage of the recent rally to increase their own stakes. Valuations across all three companies, with price-to-sales ratios ranging from roughly 69 to over 500, are significantly higher than levels that have historically proven sustainable for early-stage technology companies, and history shows that heavily hyped technologies frequently experience a painful correction before commercial adoption catches up to market expectations.
Insider Monkey’s Bottom Line
Investors should weigh the strong revenue and bookings growth against valuations that have a minimal margin for error and a continuous lack of insider conviction shown by actual purchases. Those that already own these stocks should look for any shift in insider buying activity as a signal of changing internal confidence, while new investors should be aware that at these price-to-sales multiples, continued execution on commercial adoption, not revenue growth from a small base, will be required to justify current valuations over the long term.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years
Disclosure: None. Follow Insider Monkey on Google News.
Hedge Fund Resource Center