IonQ (NYSE:IONQ) Stock Price Down 4.8% - Here's What Happened

Key Points

• IonQ shares fell 4.8% to about $40.04 amid broader weakness in quantum-computing stocks, triggered in part by news of D-Wave’s CFO retirement and sector-wide risk reduction.
• The company reported strong quarterly growth, with revenue rising 286.7% year over year to $80.05 million and adjusted losses narrower than expected, though it remains deeply unprofitable and highly valued.
• IonQ’s long-term outlook received support from its Skyloom networking expansion, clearance of the SkyWater merger review, and mostly positive analyst coverage; analysts’ consensus rating is “Moderate Buy” with a $69.92 target price.

Shares of IonQ, Inc. (NYSE:IONQ - Get Free Report) dropped 4.8% on Wednesday . The company traded as low as $39.96 and last traded at $40.04. Approximately 12,759,936 shares changed hands during mid-day trading, a decline of 49% from the average daily volume of 24,873,416 shares. The stock had previously closed at $42.05.

IonQ News Summary

Here are the key news stories impacting IonQ this week:

• Positive Sentiment: Expansion of space and networking capabilities: IonQ and partner Skyloom have placed 84 optical communications terminals in orbit, supporting the company’s ambitions in satellite networking and quantum communications. IonQ reaches 84 Skyloom optical terminals in orbit
• Positive Sentiment: Merger review cleared: The FTC has ended its review of IonQ’s planned SkyWater transaction, removing one regulatory uncertainty surrounding the deal and its access to semiconductor manufacturing capabilities. FTC Drops IonQ SkyWater Merger Review
• Positive Sentiment: Board additions: IonQ appointed technology finance expert Dr. Eric Ball and former SkyWater Chairman and Samsung North America CEO Timothy Baxter to its board. Their experience could support capital allocation, semiconductor strategy, and expansion. IonQ Appoints Dr. Eric Ball and Timothy Baxter to Board of Directors
• Positive Sentiment: Analyst support and ecosystem strategy: Wall Street coverage continues to characterize IonQ as a Buy, while analysts highlight its growing role as a merchant supplier of photonics, networking, and semiconductor technologies. Wall Street Analysts See IonQ as a Buy
• Neutral Sentiment: Quantum computing is increasingly viewed as a future cybersecurity and artificial-intelligence infrastructure opportunity, potentially benefiting IonQ from long-term post-quantum security spending. Quantum Computing Is Raising the Stakes for Cybersecurity
• Negative Sentiment: Sector-wide risk-off trading: D-Wave’s announcement that its CFO will retire next week triggered a sharp decline in D-Wave and weakness in other quantum stocks, including IonQ, suggesting investors were reducing exposure across the sector. D-Wave Sinks as Its CFO Retires
• Negative Sentiment: Valuation and profitability concerns: Commentary continues to describe IonQ as expensive relative to book value and dependent on substantial future revenue growth. The company remains loss-making, increasing sensitivity to volatility and changes in investor risk appetite. IonQ Stock May Be Rich on Book Value Yet Strong on Returns

Analysts Set New Price Targets

A number of equities research analysts recently commented on the stock. JPMorgan Chase & Co. increased their price objective on shares of IonQ from $42.00 to $50.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. Needham & Company LLC restated a "buy" rating and set a $65.00 target price on shares of IonQ in a research report on Thursday, August 6th. Weiss Ratings downgraded shares of IonQ from a "sell (d+)" rating to a "sell (d-)" rating in a report on Friday. Wedbush started coverage on shares of IonQ in a research report on Monday, August 3rd. They issued an "outperform" rating and a $75.00 price target on the stock. Finally, Northland Securities raised their price objective on shares of IonQ from $55.00 to $70.00 and gave the stock an "outperform" rating in a research note on Monday, June 22nd. Nine equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $69.92.

IonQ Price Performance

The business's 50-day moving average price is $43.68 and its two-hundred day moving average price is $43.27. The firm has a market cap of $15.26 billion, a price-to-earnings ratio of -8.59 and a beta of 3.28.

IonQ (NYSE:IONQ - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported ($0.33) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.56) by $0.23. The firm had revenue of $80.05 million for the quarter, compared to analyst estimates of $66.47 million. IonQ had a negative net margin of 553.27% and a negative return on equity of 22.29%. IonQ's revenue was up 286.7% compared to the same quarter last year. During the same quarter last year, the business earned ($0.70) earnings per share. As a group, sell-side analysts forecast that IonQ, Inc. will post -2.86 earnings per share for the current year.

Insiders Place Their Bets

In other IonQ news, insider John W. Raymond sold 3,815 shares of the stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $55.01, for a total transaction of $209,863.15. Following the transaction, the insider owned 80,148 shares of the company's stock, valued at $4,408,941.48. This represents a 4.54% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, Director Kathryn K. Chou sold 2,757 shares of the firm's stock in a transaction 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 sale, the director owned 62,608 shares in the company, valued at $3,444,692.16. This trade represents a 4.22% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 9,329 shares of company stock valued at $513,216 in the last quarter. 0.55% of the stock is currently owned by company insiders.

Institutional Trading of IonQ

Hedge funds have recently added to or reduced their stakes in the business. HighTower Advisors LLC grew its holdings in IonQ by 27.4% in the 2nd quarter. HighTower Advisors LLC now owns 88,142 shares of the company's stock valued at $4,694,000 after buying an additional 18,953 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of IonQ during the 2nd quarter worth about $10,819,000. Carlson Financial Inc. purchased a new position in shares of IonQ during the 2nd quarter worth about $366,000. California State Teachers Retirement System boosted its position in shares of IonQ by 5,901.1% in the second quarter. California State Teachers Retirement System now owns 28,318,821 shares of the company's stock worth $1,508,260,000 after acquiring an additional 27,846,924 shares during the last quarter. Finally, Ameritas Advisory Services LLC acquired a new stake in shares of IonQ in the second quarter worth approximately $335,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source