IonQ (NYSE:IONQ) Shares Down 9.6% - Here's Why

Key Points

• IonQ shares fell 9.6% on Friday as quantum-computing stocks sold off broadly and tech stocks weakened, pointing to a sector-wide risk-off move rather than company-specific news alone.
• The company’s latest earnings showed revenue growth of 754.7% year over year to $64.67 million, but IonQ still missed EPS expectations and remains unprofitable, keeping the stock highly volatile.
• Analyst views remain mixed but generally positive, with a Moderate Buy consensus and a $68.63 average price target, though some firms recently cut targets and one downgraded the stock to strong sell.

IonQ, Inc. (NYSE:IONQ - Get Free Report) traded down 9.6% during mid-day trading on Friday . The stock traded as low as $51.29 and last traded at $51.97. 26,985,849 shares traded hands during trading, an increase of 5% from the average session volume of 25,648,104 shares. The stock had previously closed at $57.47.

Key Stories Impacting IonQ

Here are the key news stories impacting IonQ this week:

• Negative Sentiment: Quantum-computing stocks including IonQ were hit hard Friday afternoon as the entire group fell, suggesting sector-wide risk-off sentiment is weighing on shares. Quantum Computing Stock Shock: IonQ, Rigetti, D-Wave, and Quantum Computing Inc. Fall 6% to 9%
• Negative Sentiment: Tech stocks are broadly falling today, adding extra pressure to IonQ as investors pull back from speculative growth names. Why IonQ Stock Is Plummeting Today
• Neutral Sentiment: Earlier coverage focused on IonQ’s strong Q1 results, including surging revenue, a growing backlog, and expanding enterprise adoption, which had supported bullish sentiment before today’s selloff. The Zacks Analyst Blog IonQ, D-Wave Quantum and Rigetti
• Neutral Sentiment: IonQ has also been highlighted as a leading quantum stock, but the shares remain highly sentiment-driven and volatile because the company is still not profitable. IonQ and 5 More Stocks to Play Quantum Fever

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on IONQ shares. Benchmark dropped their price objective on shares of IonQ from $75.00 to $65.00 and set a "buy" rating on the stock in a research report on Thursday, February 26th. Wedbush reissued an "outperform" rating and issued a $60.00 price objective on shares of IonQ in a research report on Monday, May 4th. Northland Securities started coverage on shares of IonQ in a research report on Monday, April 20th. They issued an "outperform" rating and a $55.00 price objective on the stock. Jefferies Financial Group set a $85.00 price objective on shares of IonQ in a research report on Thursday, May 7th. Finally, Wall Street Zen lowered shares of IonQ from a "sell" rating to a "strong sell" rating in a research report on Monday. Ten equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $68.63.

IonQ Stock Down 9.6%

The stock has a market capitalization of $19.05 billion, a price-to-earnings ratio of -185.61 and a beta of 3.05. The business's 50 day simple moving average is $38.16 and its 200-day simple moving average is $43.43.

IonQ (NYSE:IONQ - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The company reported ($0.34) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.26) by ($0.08). The firm had revenue of $64.67 million for 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 company earned ($0.14) earnings per share. On average, analysts expect that IonQ, Inc. will post -1.95 earnings per share for the current year.

Insiders Place Their Bets

In other IonQ news, insider John W. Raymond sold 2,800 shares of the stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $33.34, for a total transaction of $93,352.00. Following the sale, the insider directly owned 83,963 shares in the company, valued at $2,799,326.42. This represents a 3.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Robert T. Cardillo sold 3,773 shares of the stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $49.90, for a total transaction of $188,272.70. Following the sale, the insider owned 139,967 shares in the company, valued at $6,984,353.30. The trade was a 2.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 12,354 shares of company stock worth $504,428 over the last ninety days. Corporate insiders own 5.20% of the company's stock.

Institutional Investors Weigh In On IonQ

A number of hedge funds have recently made changes to their positions in the stock. International Assets Investment Management LLC boosted its stake in shares of IonQ by 4.3% in the 3rd quarter. International Assets Investment Management LLC now owns 5,679 shares of the company's stock valued at $349,000 after purchasing an additional 235 shares in the last quarter. Bogart Wealth LLC boosted 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 purchasing an additional 250 shares in the last quarter. Lauer Wealth LLC boosted its stake in shares of IonQ by 5.3% in the 4th quarter. Lauer Wealth LLC now owns 5,107 shares of the company's stock valued at $229,000 after purchasing an additional 255 shares in the last quarter. Beaird Harris Wealth Management LLC boosted its stake in shares of IonQ by 117.4% in the 3rd quarter. Beaird Harris Wealth Management LLC now owns 500 shares of the company's stock valued at $31,000 after purchasing an additional 270 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its stake in shares of IonQ by 50.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 831 shares of the company's stock valued at $36,000 after purchasing an additional 279 shares in the last quarter. 41.42% of the stock is currently owned by institutional investors and hedge funds.

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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