IonQ (NYSE:IONQ) Stock Price Down 3.5% Following Weak Earnings

Key Points

• IonQ's stock price fell 3.5% following a disappointing earnings report, with earnings per share of ($0.70) missing estimates by ($0.57).
• The company's revenue increased to $20.69 million, surpassing estimates, and showed an 81.6% growth compared to the same quarter last year.
• Despite the earnings miss, analysts maintain a Moderate Buy consensus rating with a price target averaging $45.00.

IonQ, Inc. (NYSE:IONQ - Get Free Report)'s stock price was down 3.5% during mid-day trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $38.61 and last traded at $39.81. Approximately 13,566,777 shares traded hands during mid-day trading, a decline of 41% from the average daily volume of 22,951,100 shares. The stock had previously closed at $41.23.

The company reported ($0.70) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($0.57). IonQ had a negative return on equity of 63.35% and a negative net margin of 753.20%. The firm had revenue of $20.69 million during the quarter, compared to the consensus estimate of $17.23 million. During the same period in the previous year, the company posted ($0.18) EPS. The company's revenue for the quarter was up 81.6% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the stock. Needham & Company LLC reaffirmed a "buy" rating on shares of IonQ in a research report on Monday. Benchmark upped their price target on shares of IonQ from $50.00 to $55.00 and gave the company a "buy" rating in a research report on Monday, July 7th. Wolfe Research began coverage on shares of IonQ in a research note on Wednesday, July 30th. They set a "peer perform" rating on the stock. Sanford C. Bernstein started coverage on shares of IonQ in a report on Wednesday, July 30th. They issued a "market perform" rating for the company. Finally, Oppenheimer started coverage on IonQ in a report on Wednesday, July 30th. They issued an "outperform" rating on the stock. Five investment analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $45.00.

Insiders Place Their Bets

In related news, CRO Rima Alameddine sold 45,000 shares of the stock in a transaction on Monday, July 7th. The stock was sold at an average price of $46.18, for a total value of $2,078,100.00. Following the transaction, the executive owned 552,592 shares of the company's stock, valued at $25,518,698.56. This represents a 7.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Kathryn K. Chou sold 6,789 shares of the firm's stock in a transaction dated Friday, July 11th. The shares were sold at an average price of $43.14, for a total transaction of $292,877.46. Following the completion of the sale, the director owned 60,839 shares of the company's stock, valued at approximately $2,624,594.46. The trade was a 10.04% decrease in their position. The disclosure for this sale can be found here. Insiders sold 9,191,850 shares of company stock worth $360,519,930 in the last three months. 5.20% of the stock is owned by insiders.

Institutional Investors Weigh In On IonQ

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Measured Risk Portfolios Inc. bought a new stake in IonQ in the fourth quarter worth approximately $27,000. TD Waterhouse Canada Inc. bought a new position in shares of IonQ in the 4th quarter valued at about $33,000. Atlantic Union Bankshares Corp bought a new position in IonQ in the second quarter valued at approximately $39,000. Huntington National Bank lifted its position in shares of IonQ by 2,034.0% in the second quarter. Huntington National Bank now owns 1,003 shares of the company's stock worth $43,000 after purchasing an additional 956 shares in the last quarter. Finally, Virtus Fund Advisers LLC acquired a new stake in IonQ in the 4th quarter valued at $42,000. Institutional investors own 41.42% of the company's stock.

IonQ Price Performance

The stock has a market capitalization of $10.35 billion, a P/E ratio of -26.72 and a beta of 2.54. The company's 50-day simple moving average is $41.44 and its 200-day simple moving average is $34.36.

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.

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