IonQ (NYSE:IONQ) Trading Down 4.4% – Should You Sell?

Shares of IonQ, Inc. (NYSE:IONQ) dropped 4.4% on Thursday . The company traded as low as $48.18 and last traded at $49.1390. 16,904,036 shares changed hands during mid-day trading, a decline of 36% from the average daily volume of 26,562,754 shares. The stock had previously closed at $51.40.

Key IonQ News

Here are the key news stories impacting IonQ this week:

• Positive Sentiment: IonQ’s addition to the Russell 1000 and Russell Midcap could boost institutional demand and broaden the shareholder base. IonQ Joins Russell 1000 As It Shifts From Growth To Value
• Positive Sentiment: Analysts pointed to IonQ’s strong liquidity and growing backlog as a financial strength that may help support revenue growth and ongoing development. Here’s How Financial Strength Remains a Key Advantage for IONQ
• Neutral Sentiment: Several articles continue to frame IonQ as a high-growth quantum computing leader, but with ongoing losses, heavy cash burn, and a valuation that already reflects a lot of optimism.
• Neutral Sentiment: Commentary on a pending SkyWater Technology merger-related angle and broader quantum computing coverage may keep investor attention on the sector, but these items are not immediate operating updates for IonQ. SkyWater Technology Up More Than 89% Over 6 Months, Here’s What You Need to Know
• Negative Sentiment: Some recent coverage argues that quantum computing stocks, including IonQ, may be getting ahead of fundamentals and could be vulnerable if growth expectations cool. A Revolutionary Technology Narrative Has Surged—Don’t Take the Bait

Analysts Set New Price Targets

A number of research firms have issued reports on IONQ. Rosenblatt Securities restated a “buy” rating and set a $100.00 price target on shares of IonQ in a research note on Thursday, June 11th. Wall Street Zen raised shares of IonQ from a “strong sell” rating to a “sell” rating in a report on Saturday, June 13th. JPMorgan Chase & Co. boosted their target price on shares of IonQ from $42.00 to $50.00 and gave the company a “neutral” rating in a research report on Thursday, May 7th. Wedbush reaffirmed an “outperform” rating and set a $60.00 target price on shares of IonQ in a report on Monday, May 4th. Finally, Weiss Ratings upgraded shares of IonQ from a “sell (d-)” rating to a “sell (d+)” rating in a research report on Monday, May 11th. Ten equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, IonQ presently has an average rating of “Moderate Buy” and an average target price of $69.88.

IonQ Price Performance

The business has a 50-day simple moving average of $55.48 and a 200 day simple moving average of $45.04. The firm has a market cap of $18.34 billion, a PE ratio of -175.50 and a beta of 3.23.

IonQ (NYSE:IONQ) last posted its quarterly earnings data 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 for 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 firm’s quarterly revenue was up 754.7% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.14) earnings per share. On average, equities analysts forecast that IonQ, Inc. will post -2.26 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Gabrielle B. Toledano sold 2,757 shares of IonQ stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $55.01, for a total transaction of $151,662.57. Following the transaction, the director owned 11,154 shares in the company, valued at approximately $613,581.54. The trade was a 19.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider John W. Raymond sold 3,815 shares of the company’s 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 completion of the transaction, the insider directly owned 80,148 shares of the company’s stock, valued at $4,408,941.48. This represents a 4.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 13,102 shares of company stock valued at $701,489. Company insiders own 0.55% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Ameriflex Group Inc. grew its holdings in IonQ by 485.7% during the 3rd quarter. Ameriflex Group Inc. now owns 410 shares of the company’s stock valued at $25,000 after buying an additional 340 shares in the last quarter. Accent Capital Management LLC grew its stake in IonQ by 171.8% during the fourth quarter. Accent Capital Management LLC now owns 587 shares of the company’s stock valued at $26,000 after acquiring an additional 371 shares in the last quarter. Fortitude Family Office LLC increased its holdings in IonQ by 3,800.0% in the 4th quarter. Fortitude Family Office LLC now owns 624 shares of the company’s stock valued at $28,000 after acquiring an additional 608 shares during 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 bought a new position in shares of IonQ during the 1st quarter valued at about $29,000. 41.42% of the stock is currently owned by 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.