IonQ (NYSE:IONQ) Shares Down 4.3% – Here’s Why

IonQ, Inc. (NYSE:IONQ) was down 4.3% during trading on Tuesday. The stock traded as low as $34.48 and last traded at $34.7280. Approximately 22,991,907 shares traded hands during mid-day trading, a decline of 6% from the average session volume of 24,535,469 shares. The stock had previously closed at $36.27.

IonQ News Roundup

Here are the key news stories impacting IonQ this week:

• Positive Sentiment: Sector rebound: IonQ shares are participating in a broader recovery among quantum-computing stocks, alongside gains in Rigetti Computing and D-Wave. The rebound suggests some investors view the recent selloff as an opportunity rather than a deterioration in the industry outlook. Quantum Computing Stocks Rebound After Dilution Scare
• Positive Sentiment: Cybersecurity expansion: IonQ’s planned acquisition of Elisity, valued at up to $1.3 billion in stock, would broaden the company into Zero Trust and quantum-era cybersecurity. Supporters believe the deal could add recurring revenue, enterprise relationships, and a commercial application for IonQ’s technology. IonQ to Buy Elisity for Up to $1.3B in Quantum Security Push
• Positive Sentiment: Capital for growth: IonQ priced a $2.0 billion equity offering, saying the proceeds will accelerate commercialization of its full-stack quantum platform. Rosenblatt reaffirmed a Buy rating, while Zacks upgraded the shares to a Rank #2 (Buy), providing additional bullish support. IonQ Announces Pricing of $2.0 Billion Equity Offering
• Neutral Sentiment: Long-term thesis remains speculative: Analysts and commentary point to IonQ’s partnerships, growing backlog, and cybersecurity strategy, but commercialization and the ability to convert acquisitions into earnings remain unproven.
• Negative Sentiment: Dilution and profitability concerns: The Elisity all-stock transaction and $2 billion share offering increase the number of outstanding shares, pressuring existing ownership and explaining the prior selloff. IonQ remains unprofitable, with substantial recent losses, while investors await clearer guidance on the acquisition’s financial contribution. IonQ Stock Tumbles on $2 Billion Equity Offering

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the company. Mizuho lowered their target price on IonQ from $61.00 to $52.00 and set an “outperform” rating for the company in a research note on Wednesday, September 9th. Bank of America started coverage on shares of IonQ in a research report on Monday, September 28th. They set a “buy” rating and a $60.00 price target for the company. Cantor Fitzgerald reissued an “overweight” rating and issued a $70.00 target price on shares of IonQ in a report on Wednesday, September 9th. Wedbush reaffirmed an “outperform” rating and issued a $75.00 price objective on shares of IonQ in a report on Tuesday. Finally, Morgan Stanley lowered their price objective on shares of IonQ from $49.00 to $43.00 and set an “equal weight” rating on the stock in a research note on Thursday. Ten research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, IonQ has an average rating of “Moderate Buy” and a consensus target price of $63.33.

IonQ Trading Up 9.1%

The stock has a fifty day simple moving average of $41.04 and a 200-day simple moving average of $44.81. The stock has a market cap of $13.07 billion, a price-to-earnings ratio of -7.33 and a beta of 3.36.

IonQ (NYSE:IONQ) last released its earnings results on Wednesday, August 5th. The company reported ($0.33) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.56) by $0.23. The business had revenue of $80.05 million for the quarter, compared to the consensus estimate of $66.47 million. IonQ had a negative return on equity of 22.29% and a negative net margin of 553.27%. The firm’s revenue for the quarter was up 286.7% compared to the same quarter last year. During the same period last year, the business earned ($0.70) earnings per share. Sell-side analysts forecast that IonQ, Inc. will post -2.11 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider John Raymond sold 2,407 shares of IonQ stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $37.21, for a total value of $89,564.47. Following the completion of the sale, the insider directly owned 77,741 shares of the company’s stock, valued at approximately $2,892,742.61. This trade represents a 3.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.55% of the company’s stock.

Hedge Funds Weigh In On IonQ

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new position in shares of IonQ during the second quarter worth $1,112,945,000. Bank of America Corp DE acquired a new stake in shares of IonQ during the second quarter worth about $344,757,000. Bank of New York Mellon Corp acquired a new position in shares of IonQ in the 2nd quarter valued at approximately $113,863,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in IonQ by 45.0% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,632,290 shares of the company’s stock worth $86,936,000 after buying an additional 506,191 shares during the period. Finally, Legal & General Group Plc bought a new position in IonQ in the second quarter valued at approximately $82,126,000. Institutional investors own 41.42% of the company’s stock.

IonQ Company Profile

IonQ, Inc is a quantum computing company that develops and commercializes quantum computers based on trapped-ion technology. Its systems are designed to perform specialized computations that may eventually support applications in areas such as optimization, materials science, drug discovery, financial modeling and artificial intelligence.

The company offers access to its quantum processors through cloud platforms, including Amazon Web Services’ Amazon Braket, Microsoft Azure Quantum and Google Cloud.