A board member of quantum computing firm IonQ (IONQ) has made a large purchase of company stock as the share price has fallen.
IONQ stock is down nearly 50% this year amid concerns about the viability and future development of quantum computers. However, at least one of the company’s board members, has used the pullback to buy more company stock.
IonQ board director Bill Scannell paid $2 million on March 12 to purchase 93,066 IONQ shares at an average price of $21.81 each. He now owns 135,047 IonQ shares in a personal account, according to a filing with the U.S. Securities and Exchange Commission (SEC).
Buying the Dip
In addition to his role at IonQ, Scannell serves as president of global sales and customer operations at Dell Technologies (DELL). He joined IonQ’s board of directors in February 2024, and this was his first purchase of IONQ stock on the open market. It was also the first open-market buy of IONQ stock by a company insider this year.
The downturn in IonQ’s share price over recent months comes after the stock more than tripled in 2024 as investors bet big on quantum computing. Alphabet (GOOGL) announced a quantum breakthrough last December that helped drive excitement for stocks of quantum computing companies that also include Rigetti Computing (RGTI) and D-Wave Quantum Systems (QBTS).
Quantum computing stocks took a hit earlier this year after Nvidia (NVDA) CEO Jensen Huang said that quantum computing wouldn’t be a useful technology for several more decades. However, Huang just walked back those comments and said he was “wrong” about the timing related to quantum computers.
Is IONQ Stock a Buy?
The stock of IonQ has a consensus Moderate Buy rating among six Wall Street analysts. That rating is based on four Buy and two Hold recommendations assigned in the last three months. The average IONQ price target of $41.60 implies 89.35% upside from current levels.
Read more analyst ratings on IONQ stock
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