IonQ (NYSE:IONQ) Trading Down 9.7% - Time to Sell?

Key Points

• IonQ shares fell 9.7% in mid-day trading, with heavy volume of 35.0 million shares, as the stock traded down from a prior close of $62.80 to as low as $53.26.
• Despite the drop, the article highlights mostly bullish analyst sentiment, including a “Moderate Buy” consensus and a consensus price target of $68.63, with several firms reiterating buy or outperform ratings.
• IonQ’s latest quarter showed rapid revenue growth but continued losses: revenue rose 754.7% year over year to $64.67 million, while EPS missed estimates at -$0.34 versus -$0.26 expected.

IonQ, Inc. (NYSE:IONQ - Get Free Report) fell 9.7% during mid-day trading on Tuesday . The stock traded as low as $53.26 and last traded at $56.6870. 35,017,268 shares were traded during mid-day trading, an increase of 31% from the average session volume of 26,793,232 shares. The stock had previously closed at $62.80.

Trending Headlines about IonQ

Here are the key news stories impacting IonQ this week:

• Positive Sentiment: IonQ remains a favored pure-play quantum computing name in several bullish articles, with writers highlighting its market-leading technology and long-term upside in the sector. 3 Unstoppable Quantum Computing Stocks to Buy Now
• Positive Sentiment: A bullish thesis cited by outside analysts points to strong Q1 revenue, raised full-year guidance, rapid growth in remaining performance obligations, and major acquisitions that could expand IonQ’s scale and vertical integration. Is IonQ, Inc. (IONQ) A Good Stock To Buy Now?
• Positive Sentiment: IonQ has also been included in multiple “best stocks to follow” and “buy now” lists, keeping investor attention on the company’s growth story. Brokers Suggest Investing in IonQ (IONQ): Read This Before Placing a Bet
• Neutral Sentiment: Broader market coverage continues to frame IonQ as one of the key quantum computing stocks to watch, which supports trading interest but does not change fundamentals by itself. Best Quantum Computing Stocks To Follow Today - June 6th
• Negative Sentiment: Martin Shkreli publicly accused IonQ of making misleading bitcoin-mining claims, raising reputational concerns and potentially adding to volatility around the stock. Martin Shkreli accuses IONQ of making wild bitcoin mining claims: 'They were lying'

Analysts Set New Price Targets

Several brokerages have weighed in on IONQ. Rosenblatt Securities reaffirmed a "buy" rating and set a $100.00 price target on shares of IonQ 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. Weiss Ratings upgraded IonQ from a "sell (d-)" rating to a "sell (d+)" rating in a research report on Monday, May 11th. Benchmark dropped their target price on IonQ from $75.00 to $65.00 and set a "buy" rating on the stock in a research report on Thursday, February 26th. Finally, Wedbush restated an "outperform" rating and set a $60.00 target price on shares of IonQ in a research report on Monday, May 4th. Ten investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $68.63.

IonQ Stock Performance

The stock has a market capitalization of $21.16 billion, a PE ratio of -202.45 and a beta of 3.18. The stock's 50 day moving average is $47.83 and its two-hundred day moving average is $44.25.

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

Insider Transactions at IonQ

In other IonQ news, insider John W. Raymond sold 2,800 shares of the firm's stock in a transaction that occurred on Thursday, March 12th. The shares were 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 $2,799,326.42. This trade represents a 3.23% 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 the firm's stock in a transaction that occurred on 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 in the company, valued at $6,984,353.30. This trade represents a 2.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 5.20% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Ameriflex Group Inc. lifted its stake in IonQ by 485.7% in the 3rd quarter. Ameriflex Group Inc. now owns 410 shares of the company's stock worth $25,000 after purchasing an additional 340 shares in the last quarter. Accent Capital Management LLC lifted its stake in IonQ by 171.8% in the 4th quarter. Accent Capital Management LLC now owns 587 shares of the company's stock worth $26,000 after purchasing an additional 371 shares in the last quarter. Fortitude Family Office LLC lifted its stake in IonQ by 3,800.0% in the 4th quarter. Fortitude Family Office LLC now owns 624 shares of the company's stock worth $28,000 after purchasing an additional 608 shares in the last quarter. EverSource Wealth Advisors LLC lifted its stake in IonQ by 216.5% in the 1st quarter. EverSource Wealth Advisors LLC now owns 959 shares of the company's stock worth $28,000 after purchasing an additional 656 shares in the last quarter. Finally, PeakShares LLC purchased a new position in IonQ in the 1st quarter worth approximately $29,000. 41.42% of the stock is owned by hedge funds and other institutional investors.

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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