IonQ (NYSE:IONQ) Trading Down 8.1% - What's Next?

Key Points

• IonQ shares fell 8.1% on Tuesday, trading as low as $55.91 after closing at $61.18 the previous day. Trading volume was also lighter than normal, at about 21.7 million shares versus the 26.6 million daily average.
• Despite the drop, Wall Street sentiment remains constructive overall: Rosenblatt reiterated a Buy rating with a $100 price target, and the broader analyst consensus is a Moderate Buy with an average target of $68.63.
• Recent pressure appears tied to a reversal in the quantum-stock rally, with several peers also falling, while IonQ’s latest results showed strong revenue growth but a wider-than-expected loss. The company reported revenue of $64.67 million, up 754.7% year over year, but missed EPS expectations.

IonQ, Inc. (NYSE:IONQ - Get Free Report) shares were down 8.1% during mid-day trading on Tuesday . The stock traded as low as $55.91 and last traded at $56.1940. Approximately 21,680,374 shares were traded during trading, a decline of 19% from the average daily volume of 26,648,676 shares. The stock had previously closed at $61.18.

Trending Headlines about IonQ

Here are the key news stories impacting IonQ this week:

• Positive Sentiment: Rosenblatt reiterated a Buy rating on IonQ with a $100 price target, reinforcing a bullish long-term view from one analyst. Rosenblatt Reaffirms Buy on IonQ, Inc. (IONQ) with 100 Price Target
• Positive Sentiment: Coverage highlighting IonQ as one of the more promising quantum-computing names kept investor attention on the stock and the broader industry watchlist. Promising Quantum Computing Stocks To Add to Your Watchlist - June 15th
• Positive Sentiment: Recent bullish sector momentum helped IonQ participate in a wider quantum-stock rally, as investors responded to risk-on trading and optimism around commercialization. D-Wave Leads Quantum Computing Stocks Higher as These Experts See More Gains Ahead
• Neutral Sentiment: IonQ was also included in commentary about rising interest in the stock, suggesting the name remains highly watched by traders but without a major new catalyst. Here is What to Know Beyond Why IonQ, Inc. (IONQ) is a Trending Stock
• Negative Sentiment: The main near-term pressure comes from the sector giving back gains, with multiple quantum stocks falling 5% to 7% as Monday’s rally unwinds. IonQ, Rigetti, D-Wave, and Quantum Computing Inc. All Fall 5% to 7% as the Quantum Rally Reverses
• Negative Sentiment: Commentary on “IonQ’s revenue shock” may be raising questions about sector fundamentals and valuation expectations, which could add volatility to the stock. What IonQ’s revenue shock means for the entire sector

Wall Street Analysts Forecast Growth

IONQ has been the subject of a number of recent analyst reports. Morgan Stanley set a $48.50 price objective on IonQ in a report on Thursday, May 7th. JPMorgan Chase & Co. upped their price objective on IonQ from $42.00 to $50.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. Northland Securities initiated coverage on IonQ in a report on Monday, April 20th. They issued an "outperform" rating and a $55.00 price objective for the company. Wedbush reiterated an "outperform" rating and issued a $60.00 price objective on shares of IonQ in a report on Monday, May 4th. Finally, DA Davidson dropped their price objective on IonQ from $55.00 to $35.00 and set a "neutral" rating for the company in a report on Thursday, February 26th. Ten equities 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. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $68.63.

IonQ Stock Down 8.1%

The firm has a fifty day simple moving average of $50.85 and a 200-day simple moving average of $44.72. The company has a market capitalization of $20.98 billion, a P/E ratio of -200.69 and a beta of 3.18.

IonQ (NYSE:IONQ - Get Free Report) last posted 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 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 firm's quarterly revenue was up 754.7% on a year-over-year basis. During the same period in the prior year, the company earned ($0.14) earnings per share. On average, sell-side analysts predict that IonQ, Inc. will post -2.26 earnings per share for the current fiscal year.

Insider Buying and Selling at IonQ

In other news, insider Robert T. Cardillo sold 3,773 shares of the company's 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 completion of the transaction, the insider directly owned 139,967 shares of the company's stock, valued at $6,984,353.30. This represents a 2.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.55% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Clear Street Group Inc. acquired a new stake in shares of IonQ in the third quarter valued at approximately $61,488,000. Swedbank AB acquired a new stake in IonQ during the 4th quarter worth approximately $2,708,000. Jefferies Financial Group Inc. acquired a new stake in IonQ during the 4th quarter worth approximately $3,271,000. ProShare Advisors LLC lifted its holdings in IonQ by 30.3% during the 4th quarter. ProShare Advisors LLC now owns 62,184 shares of the company's stock worth $2,790,000 after purchasing an additional 14,465 shares during the last quarter. Finally, Forsta AP Fonden acquired a new stake in IonQ during the 4th quarter worth approximately $5,488,000. 41.42% of the stock is owned by institutional investors and hedge funds.

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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