IonQ (NYSE:IONQ) Shares Down 5.8% – Should You Sell?

IonQ, Inc. (NYSE:IONQ) dropped 5.8% during trading on Wednesday . The stock traded as low as $31.81 and last traded at $31.9020. 21,633,171 shares were traded during trading, a decline of 15% from the average daily volume of 25,588,715 shares. The stock had previously closed at $33.88.

Key Headlines Impacting IonQ

Here are the key news stories impacting IonQ this week:

• Positive Sentiment: Final approval clears SkyWater acquisition. IonQ received the last regulatory approval needed to complete its acquisition of SkyWater Technology, a U.S.-based semiconductor foundry. The transaction is expected to accelerate IonQ’s quantum-computing roadmap, provide greater control over chip manufacturing and reduce reliance on foreign suppliers. IonQ Receives Regulatory Approval to Complete Acquisition of SkyWater Technology
• Positive Sentiment: Analyst support improved. Benchmark upgraded IonQ to “strong-buy,” adding a positive catalyst after the stock’s recent decline. Benchmark has highlighted IonQ’s full-stack platform, including computing, networking, sensing and security, as well as its commercial progress with a 256-qubit system sold in more than 30 countries. Benchmark’s Quantum Re-Rating Might Change The Case For Investing In IonQ
• Neutral Sentiment: Industry commercialization is gaining attention. An expanded AT&T partnership with D-Wave, which reportedly reduced a network task from 60 minutes to 15 seconds, has prompted higher analyst targets and reinforced the view that quantum computing is moving toward practical applications. The development may support sentiment across the sector, although it does not represent IonQ revenue directly. D-Wave’s AT&T Deal Shows Quantum Computing Is Moving Beyond Theory
• Negative Sentiment: Sector-wide valuation pressure remains the dominant factor. IonQ, Rigetti and D-Wave have each lost roughly 30% over the past month as investors pulled capital from expensive, loss-making technology companies amid concerns about AI-infrastructure spending and market risk. IonQ’s elevated volatility, negative earnings and position well below its moving averages make it particularly sensitive to further de-risking. IonQ, Rigetti, and D-Wave Quantum Are Down 30% in a Month

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on IONQ. Benchmark began coverage on IonQ in a research note on Monday. They set a “buy” rating and a $60.00 price target for the company. Morgan Stanley set a $48.50 target price on shares of IonQ in a research report on Thursday, May 7th. JPMorgan Chase & Co. boosted their price target on IonQ from $42.00 to $50.00 and gave the company a “neutral” rating in a research report on Thursday, May 7th. Wedbush reiterated an “outperform” rating and set a $60.00 price objective on shares of IonQ in a research note on Monday, May 4th. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $100.00 target price on shares of IonQ in a report on Thursday, June 11th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $69.46.

IonQ Stock Down 5.8%

The stock has a market capitalization of $11.91 billion, a P/E ratio of -113.94 and a beta of 3.23. The company has a 50 day moving average of $51.98 and a 200-day moving average of $43.90.

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

Insider Activity

In other IonQ news, Director Kathryn K. Chou sold 2,757 shares of the business’s stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $55.02, for a total transaction of $151,690.14. Following the completion of the transaction, the director directly owned 62,608 shares of the company’s stock, valued at $3,444,692.16. The trade was a 4.22% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Gabrielle B. Toledano sold 2,757 shares of IonQ stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $55.01, for a total value of $151,662.57. Following the sale, the director directly owned 11,154 shares in the company, valued at approximately $613,581.54. This trade represents a 19.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 13,102 shares of company stock valued at $701,489. 0.55% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of IONQ. Swedbank AB acquired a new stake in shares of IonQ during the fourth quarter worth $2,708,000. Jefferies Financial Group Inc. acquired a new stake in shares of IonQ during the fourth quarter worth approximately $3,271,000. Fjarde AP Fonden Fourth Swedish National Pension Fund grew its holdings in shares of IonQ by 96.5% during the 1st quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 125,556 shares of the company’s stock valued at $3,620,000 after acquiring an additional 61,656 shares in the last quarter. ProShare Advisors LLC grew its stake in IonQ by 30.3% in the fourth quarter. ProShare Advisors LLC now owns 62,184 shares of the company’s stock valued at $2,790,000 after purchasing an additional 14,465 shares in the last quarter. Finally, Forsta AP Fonden acquired a new position in IonQ in the fourth quarter worth approximately $5,488,000. Institutional investors own 41.42% of the company’s stock.

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.