IonQ (NYSE:IONQ) Shares Down 5.8% - Here's Why

Key Points

• IonQ shares fell 5.8% to about $31.90 amid broader pressure on high-valuation, loss-making quantum-computing stocks, which have declined roughly 30% over the past month.
• IonQ received final regulatory approval to acquire SkyWater Technology, a U.S. semiconductor foundry; the deal is expected to strengthen chip-manufacturing control and support its quantum-computing roadmap.
• Despite the selloff, analyst sentiment remains generally positive: Benchmark upgraded the stock to “strong buy,” while MarketBeat reports a “Moderate Buy” consensus and an average price target of $69.46. IonQ remains unprofitable and recently missed earnings expectations, although quarterly revenue rose 754.7% year over year.

IonQ, Inc. (NYSE:IONQ - Get Free Report)'s share price fell 5.8% on Wednesday . The stock traded as low as $31.81 and last traded at $31.9020. Approximately 21,633,171 shares changed hands during trading, a decline of 15% from the average session volume of 25,588,715 shares. The stock had previously closed at $33.88.

IonQ News Roundup

Here are the key news stories impacting IonQ this week:

• Positive Sentiment: Final approval clears SkyWater acquisition. IonQ received the last regulatory approval needed to complete its acquisition of SkyWater Technology, a U.S.-based semiconductor foundry. The transaction is expected to accelerate IonQ’s quantum-computing roadmap, provide greater control over chip manufacturing and reduce reliance on foreign suppliers. IonQ Receives Regulatory Approval to Complete Acquisition of SkyWater Technology
• Positive Sentiment: Analyst support improved. Benchmark upgraded IonQ to “strong-buy,” adding a positive catalyst after the stock’s recent decline. Benchmark has highlighted IonQ’s full-stack platform, including computing, networking, sensing and security, as well as its commercial progress with a 256-qubit system sold in more than 30 countries. Benchmark’s Quantum Re-Rating Might Change The Case For Investing In IonQ
• Neutral Sentiment: Industry commercialization is gaining attention. An expanded AT&T partnership with D-Wave, which reportedly reduced a network task from 60 minutes to 15 seconds, has prompted higher analyst targets and reinforced the view that quantum computing is moving toward practical applications. The development may support sentiment across the sector, although it does not represent IonQ revenue directly. D-Wave’s AT&T Deal Shows Quantum Computing Is Moving Beyond Theory
• Negative Sentiment: Sector-wide valuation pressure remains the dominant factor. IonQ, Rigetti and D-Wave have each lost roughly 30% over the past month as investors pulled capital from expensive, loss-making technology companies amid concerns about AI-infrastructure spending and market risk. IonQ’s elevated volatility, negative earnings and position well below its moving averages make it particularly sensitive to further de-risking. IonQ, Rigetti, and D-Wave Quantum Are Down 30% in a Month

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on IONQ shares. Rosenblatt Securities reaffirmed a "buy" rating and issued a $100.00 price target on shares of IonQ in a research report on Thursday, June 11th. Wall Street Zen raised IonQ from a "strong sell" rating to a "sell" rating in a report on Saturday. JPMorgan Chase & Co. boosted their price objective on shares of IonQ from $42.00 to $50.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. Northland Securities upped their target price on IonQ from $55.00 to $70.00 and gave the company an "outperform" rating in a research report on Monday, June 22nd. Finally, Weiss Ratings raised IonQ from a "sell (d-)" rating to a "sell (d+)" rating in a research report on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $69.46.

IonQ Stock Down 5.8%

The stock's 50-day simple moving average is $51.98 and its two-hundred day simple moving average is $43.90. The company has a market capitalization of $11.91 billion, a price-to-earnings ratio of -113.94 and a beta of 3.23.

IonQ (NYSE:IONQ - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported ($0.34) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.26) by ($0.08). The firm had revenue of $64.67 million during the quarter, compared to analyst estimates of $49.75 million. IonQ had a negative return on equity of 23.20% and a net margin of 174.88%.The company's quarterly revenue was up 754.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.14) earnings per share. On average, sell-side analysts forecast that IonQ, Inc. will post -2.26 EPS for the current year.

Insider Buying and Selling at IonQ

In other IonQ news, insider Robert T. Cardillo sold 3,773 shares of the business's stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $49.90, for a total transaction of $188,272.70. Following the transaction, the insider owned 139,967 shares of the company's stock, valued at approximately $6,984,353.30. The trade was a 2.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Gabrielle B. Toledano sold 2,757 shares of the business's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $55.01, for a total transaction of $151,662.57. Following the transaction, the director directly owned 11,154 shares in the company, valued at approximately $613,581.54. The trade was a 19.82% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 13,102 shares of company stock valued at $701,489. Corporate insiders own 0.55% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in IONQ. Bogart Wealth LLC increased its holdings in shares of IonQ by 24.4% in the 1st quarter. Bogart Wealth LLC now owns 1,273 shares of the company's stock valued at $37,000 after acquiring an additional 250 shares during the last quarter. Beaird Harris Wealth Management LLC boosted its stake in IonQ by 117.4% during the 3rd quarter. Beaird Harris Wealth Management LLC now owns 500 shares of the company's stock worth $31,000 after purchasing an additional 270 shares during the period. EverSource Wealth Advisors LLC boosted its stake in shares of IonQ by 50.5% during the second quarter. EverSource Wealth Advisors LLC now owns 831 shares of the company's stock worth $36,000 after buying an additional 279 shares during the period. ABN Amro Investment Solutions grew its stake in shares of IonQ by 2.5% in the 1st quarter. ABN Amro Investment Solutions now owns 12,314 shares of the company's stock valued at $355,000 after purchasing an additional 295 shares during the last quarter. Finally, Versant Capital Management Inc increased its stake in IonQ by 26.1% in the 2nd quarter. Versant Capital Management Inc now owns 1,491 shares of the company's stock valued at $79,000 after buying an additional 309 shares during the period. 41.42% of the stock is currently owned by hedge funds and other institutional investors.

IonQ Company Profile

IonQ, Inc engages in the development of general-purpose quantum computing systems in the United States. It sells access to quantum computers of various qubit capacities. The company makes access to its quantum computers through cloud platforms, such as Amazon Web Services (AWS) Amazon Braket, Microsoft's Azure Quantum, and Google's Cloud Marketplace, as well as through its cloud service. It also provides contracts associated with the design, development, and construction of specialized quantum computing hardware systems; maintenance and support services; and consulting services related to co-developing algorithms on quantum computing systems.

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