IonQ (NYSE:IONQ) Shares Down 9.3% - Here's Why

Key Points

• IonQ shares fell 9.3% in midday trading, dropping as low as $38.62 after closing at $42.86 the previous session. Trading volume was slightly below average at about 23.6 million shares.
• Analyst sentiment remains broadly positive despite the decline, with 10 Buy ratings, 6 Hold ratings, and 1 Sell rating. The consensus view is a “Moderate Buy,” and the average target price is $69.88.
• Recent earnings showed strong revenue growth but continued losses, as IonQ posted $64.67 million in quarterly revenue, up 754.7% year over year, while EPS came in at -$0.34 versus an expected -$0.26. Insiders also sold shares recently, and institutional investors hold about 41.4% of the company.

IonQ, Inc. (NYSE:IONQ - Get Free Report) was down 9.3% during mid-day trading on Monday . The stock traded as low as $38.62 and last traded at $38.8940. Approximately 23,589,838 shares changed hands during mid-day trading, a decline of 9% from the average daily volume of 26,065,197 shares. The stock had previously closed at $42.86.

Wall Street Analysts Forecast Growth

IONQ has been the subject of several analyst reports. Wall Street Zen upgraded IonQ from a "strong sell" rating to a "sell" rating in a report on Saturday, June 13th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $100.00 price objective on shares of IonQ in a research report on Thursday, June 11th. Weiss Ratings raised shares of IonQ from a "sell (d-)" rating to a "sell (d+)" rating in a research report on Monday, May 11th. Morgan Stanley set a $48.50 price objective on shares of IonQ in a research note on Thursday, May 7th. Finally, JPMorgan Chase & Co. raised their price objective on IonQ from $42.00 to $50.00 and gave the stock a "neutral" rating in a research note on Thursday, May 7th. Ten research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $69.88.

IonQ Stock Performance

The firm has a market cap of $14.52 billion, a PE ratio of -138.91 and a beta of 3.23. The firm's 50 day moving average price is $55.81 and its two-hundred day moving average price is $44.94.

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

Insider Activity

In other news, insider John W. Raymond sold 3,815 shares of the company's stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $55.01, for a total transaction of $209,863.15. Following the transaction, the insider directly owned 80,148 shares of the company's stock, valued at $4,408,941.48. This represents a 4.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Robert T. Cardillo sold 3,773 shares of IonQ stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $49.90, for a total value of $188,272.70. Following the transaction, the insider directly owned 139,967 shares of the company's stock, valued at $6,984,353.30. This trade represents a 2.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 13,102 shares of company stock worth $701,489 in the last 90 days. Corporate insiders own 0.55% of the company's stock.

Hedge Funds Weigh In On IonQ

A number of large investors have recently bought and sold shares of IONQ. Bogart Wealth LLC raised its stake 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 period. Lauer Wealth LLC boosted its position in shares of IonQ by 5.3% in the fourth quarter. Lauer Wealth LLC now owns 5,107 shares of the company's stock worth $229,000 after buying an additional 255 shares during the period. Beaird Harris Wealth Management LLC boosted its position in shares of IonQ by 117.4% in the third quarter. Beaird Harris Wealth Management LLC now owns 500 shares of the company's stock worth $31,000 after buying an additional 270 shares during the period. EverSource Wealth Advisors LLC grew its stake in shares of IonQ by 50.5% in the second quarter. EverSource Wealth Advisors LLC now owns 831 shares of the company's stock valued at $36,000 after buying an additional 279 shares in the last quarter. Finally, ABN Amro Investment Solutions grew its stake in shares of IonQ by 2.5% in the first quarter. ABN Amro Investment Solutions now owns 12,314 shares of the company's stock valued at $355,000 after buying an additional 295 shares in the last quarter. Hedge funds and other institutional investors own 41.42% of the company's stock.

About IonQ

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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