IonQ (NYSE:IONQ) Trading Up 6.6% - What's Next?

Key Points

• IonQ shares rose 6.6% to about $38.85 in heavy trading, buoyed by broader enthusiasm for quantum-computing stocks and the completion of its approximately $1.8 billion SkyWater Technology acquisition.
• Wedbush initiated coverage with an “outperform” rating and a $75 price target; analysts overall give IonQ a “Moderate Buy” consensus rating with an average target of $70.71.
• IonQ reported 754.7% year-over-year revenue growth to $64.67 million, but missed on earnings, remains unprofitable, expects an adjusted EBITDA loss above $300 million, and faces execution and valuation risks following the SkyWater deal.

IonQ, Inc. (NYSE:IONQ - Get Free Report)'s stock price shot up 6.6% during mid-day trading on Monday . The stock traded as high as $40.16 and last traded at $38.8490. 23,096,456 shares traded hands during trading, a decline of 9% from the average session volume of 25,510,410 shares. The stock had previously closed at $36.44.

IonQ News Roundup

Here are the key news stories impacting IonQ this week:

• Positive Sentiment: SkyWater acquisition closes: IonQ completed its approximately $1.8 billion purchase of SkyWater Technology after receiving clearance from the U.S. Federal Trade Commission. The deal gives IonQ greater control over semiconductor manufacturing and is intended to support production scaling, while SkyWater continues serving aerospace, defense, and commercial customers. IonQ closes SkyWater acquisition after US FTC clearance
• Positive Sentiment: New bullish analyst coverage: Wedbush initiated coverage with an “outperform” rating and a $75 price target, implying substantial upside from the stock’s recent level. The recommendation adds institutional support to IonQ’s growth story. Benzinga
• Positive Sentiment: Quantum sector momentum: IonQ gained alongside D-Wave Quantum and Rigetti as investors reacted to new industry catalysts and a firm broader market. The move highlights continued enthusiasm for quantum-computing exposure. D-Wave Spikes 11% on Nasdaq Verafin Deal, IonQ Gains 9% After SkyWater Buyout, Rigetti Rises 7%
• Neutral Sentiment: Strong growth, but execution remains critical: IonQ reported quarterly revenue of $64.7 million, up roughly 755% year over year, and expects more than 100% organic growth for the full year. Its $3.1 billion cash and investment balance provides funding for expansion, though the company expects an adjusted EBITDA loss exceeding $300 million this year. IonQ Is Worth $13 Billion and Sits 58% Below Its High
• Negative Sentiment: High-risk valuation profile: IonQ remains unprofitable, with a negative earnings multiple and elevated share-price volatility. Investors must weigh the SkyWater integration costs and ongoing cash burn against the company’s rapid growth prospects.

Analyst Upgrades and Downgrades

IONQ has been the subject of a number of research analyst reports. Weiss Ratings raised shares of IonQ from a "sell (d-)" rating to a "sell (d+)" rating in a research report on Monday, May 11th. Rosenblatt Securities reissued a "buy" rating and set a $100.00 target price on shares of IonQ in a research report on Thursday, June 11th. Wedbush assumed coverage on IonQ in a research note on Monday. They set an "outperform" rating and a $75.00 price target on the stock. Benchmark assumed coverage on IonQ in a report on Monday, July 27th. They issued a "buy" rating and a $60.00 price target for the company. Finally, Wall Street Zen upgraded IonQ from a "strong sell" rating to a "sell" rating in a research report on Saturday, July 25th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, IonQ presently has a consensus rating of "Moderate Buy" and an average target price of $70.71.

IonQ Trading Up 6.6%

The company has a 50 day moving average of $50.56 and a 200 day moving average of $43.57. The firm has a market cap of $14.50 billion, a price-to-earnings ratio of -138.75 and a beta of 3.23.

IonQ (NYSE:IONQ - Get Free Report) last announced 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 the consensus estimate of $49.75 million. IonQ had a net margin of 174.88% and a negative return on equity of 23.20%. The business's revenue was up 754.7% on a year-over-year basis. During the same quarter last year, the company earned ($0.14) earnings per share. As a group, sell-side analysts anticipate that IonQ, Inc. will post -2.26 EPS for the current fiscal year.

Insider Activity

In other IonQ news, insider John W. Raymond sold 3,815 shares of the business's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $55.01, for a total value of $209,863.15. Following the transaction, the insider directly owned 80,148 shares in the company, valued at $4,408,941.48. The trade was a 4.54% 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. Also, Director Kathryn K. Chou sold 2,757 shares of the business's stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $55.02, for a total value of $151,690.14. Following the completion of the transaction, the director directly owned 62,608 shares in the company, valued at $3,444,692.16. The trade was a 4.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 13,102 shares of company stock worth $701,489 in the last quarter. 0.55% of the stock is owned by company insiders.

Institutional Investors Weigh In On IonQ

Hedge funds have recently added to or reduced their stakes in the stock. Accent Capital Management LLC increased its holdings in shares of IonQ by 171.8% in the fourth quarter. Accent Capital Management LLC now owns 587 shares of the company's stock valued at $26,000 after purchasing an additional 371 shares in the last quarter. EverSource Wealth Advisors LLC raised its position in shares of IonQ by 216.5% in the 1st quarter. EverSource Wealth Advisors LLC now owns 959 shares of the company's stock valued at $28,000 after acquiring an additional 656 shares during the period. PeakShares LLC bought a new position in shares of IonQ during the first quarter worth $29,000. Beaird Harris Wealth Management LLC lifted its holdings in IonQ by 117.4% during the third quarter. Beaird Harris Wealth Management LLC now owns 500 shares of the company's stock worth $31,000 after acquiring an additional 270 shares in the last quarter. Finally, MWA Asset Management acquired a new position in shares of IonQ in the 1st quarter valued at approximately $32,000. Institutional investors own 41.42% of the company's stock.

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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