IonQ (NYSE:IONQ) Stock Price Down 1.7% After Analyst Downgrade

Key Points

• IonQ shares fell 1.7% after Wall Street Zen downgraded the stock from sell to strong sell. The stock traded as low as $52.17 and volume surged to more than double the average session level.
• Despite the move lower, analyst sentiment remains mixed-to-bullish overall: IonQ still has a Moderate Buy consensus rating with a $68.63 average target price, even as some firms have cut targets or maintained bearish views.
• Recent insider sales and valuation concerns may be weighing on sentiment, though institutional investors remain heavily involved. Hedge funds and other institutions own about 41.42% of the stock, and major holders like Vanguard and State Street increased their stakes.

Shares of IonQ, Inc. (NYSE:IONQ - Get Free Report) fell 1.7% during mid-day trading on Tuesday after Wall Street Zen downgraded the stock from a sell rating to a strong sell rating. The stock traded as low as $52.17 and last traded at $55.9180. 51,354,332 shares traded hands during mid-day trading, an increase of 101% from the average session volume of 25,527,063 shares. The stock had previously closed at $56.89.

IONQ has been the subject of a number of other reports. Jefferies Financial Group set a $85.00 target price on IonQ in a research report on Thursday, May 7th. Wedbush reissued an "outperform" rating and issued a $60.00 target price on shares of IonQ in a research report on Monday, May 4th. DA Davidson decreased their target price on IonQ from $55.00 to $35.00 and set a "neutral" rating for the company in a research report on Thursday, February 26th. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of IonQ in a research report on Monday, February 9th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of IonQ in a research report on Tuesday, April 21st. Ten equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $68.63.

Insider Transactions at IonQ

In other news, insider Robert T. Cardillo sold 5,165 shares of the stock in a transaction that occurred on Thursday, February 26th. The stock was sold at an average price of $39.44, for a total transaction of $203,707.60. Following the completion of the transaction, the insider directly owned 112,291 shares of the company's stock, valued at approximately $4,428,757.04. This represents a 4.40% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider John W. Raymond sold 2,800 shares of the stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $33.34, for a total value of $93,352.00. Following the transaction, the insider directly owned 83,963 shares of the company's stock, valued at approximately $2,799,326.42. This trade represents a 3.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 12,354 shares of company stock valued at $504,428. Corporate insiders own 5.20% of the company's stock.

Key Stories Impacting IonQ

Here are the key news stories impacting IonQ this week:

• Positive Sentiment: IonQ’s stock jumped after SkyWater Technology shareholders approved the companies’ merger agreement, moving IonQ’s manufacturing strategy one step closer and strengthening its long-term quantum hardware story. IonQ stock jumps as SkyWater deal clears shareholder vote
• Positive Sentiment: Investor sentiment also improved after IonQ reported a record quarter that beat guidance, prompting Morgan Stanley to raise its price target and reinforcing the view that the company is emerging as a category leader in quantum computing. Morgan Stanley lifts IonQ target after record quarter
• Positive Sentiment: IonQ is also benefiting from broader excitement in quantum stocks, with multiple articles highlighting strong investor attention and a rising share price across the group. Investors Heavily Search IonQ, Inc. (IONQ): Here is What You Need to Know
• Neutral Sentiment: IonQ continues to generate headlines around partnerships and its chip-manufacturing ambitions, including a new “Harmonious Urban Growth” quantum optimization program and comments that its SkyWater deal puts manufacturing in focus, which supports the company’s long-term narrative but does not yet change fundamentals. The King's Foundation and FormationQ Launch "Harmonious Urban Growth" Programme to Help Cities Plan Sustainable Expansion Using Quantum Optimisation
• Negative Sentiment: Not all commentary is bullish: one 24/7 Wall St. note argued that IonQ faces headwinds and set a much lower 12-month price target, reminding investors that valuation and execution risks remain high. Prediction: IonQ Faces Headwinds That Could Push It Lower Despite Quantum Hype
• Negative Sentiment: An insider sale reported over the weekend may also add a small overhang for sentiment, especially after the sharp move higher in the stock. Insider Selling: IonQ NYSE: IONQ Insider Sells $188,272.70 in Stock

Hedge Funds Weigh In On IonQ

A number of large investors have recently modified their holdings of IONQ. Vanguard Group Inc. raised its stake in shares of IonQ by 18.5% during the 4th quarter. Vanguard Group Inc. now owns 34,774,743 shares of the company's stock worth $1,560,343,000 after buying an additional 5,420,037 shares in the last quarter. Norges Bank purchased a new position in shares of IonQ during the 4th quarter worth approximately $199,753,000. Marex Group plc raised its stake in shares of IonQ by 419.1% during the 4th quarter. Marex Group plc now owns 4,083,453 shares of the company's stock worth $183,225,000 after buying an additional 3,296,866 shares in the last quarter. State Street Corp raised its stake in shares of IonQ by 42.3% during the 4th quarter. State Street Corp now owns 8,962,789 shares of the company's stock worth $402,160,000 after buying an additional 2,663,230 shares in the last quarter. Finally, Clear Street Group Inc. increased its stake in IonQ by 219.6% in the 4th quarter. Clear Street Group Inc. now owns 3,195,818 shares of the company's stock valued at $143,396,000 after purchasing an additional 2,196,017 shares in the last quarter. 41.42% of the stock is owned by hedge funds and other institutional investors.

IonQ Trading Down 1.7%

The stock has a market capitalization of $20.50 billion, a PE ratio of -199.71 and a beta of 3.05. The firm has a 50 day moving average of $37.06 and a two-hundred day moving average of $43.48.

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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