On August 13, 2025, Director Inder M. Singh sold 50,480 net shares of IonQ (IONQ 0.78%) in a derivative-related transaction where he exercised the same number of options and proceeded to then sell the shares in an open-market transaction.
Transaction summary
| Metric | Value |
|---|---|
| Shares traded | 50,480 |
| Transaction value | $2.2 million |
| Post-transaction shares | 5,513 |
| Post-transaction value | $227,191 (as of Aug. 13, 2025) |
| 1-year performance | 463.7% |
Transaction value is based on the SEC Form 4 reported price ($43.02); post-transaction value reflects the reported position value after the transaction ($227,190.73). No GAAP or non-GAAP designation is specified for these values.
Key questions
How significant was this sale relative to prior holdings?
After this transaction, Singh retained just 5,513 shares, representing a 90.15% reduction from the pre-transaction level of 55,993 shares as of August 13, 2025.
What does this activity indicate about capacity and remaining insider exposure?
Given the cumulative effect of recent transactions — selling net 87,570 shares since June 18, 2025 — the remaining holding now represents 0.002% of shares outstanding as of August 13, 2025, according to SEC Form 4 data. The current low share count constrains the scale of any future transactions.
How does the timing align with recent market performance?
The transaction followed a twelve-month period during which IonQ shares rose nearly 464% in one year. The reported sales were executed at $43.02 per share on August 13, 2025, while the stock closed at $41.21 that day and at $40.23 as of August 18, 2025.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $12.2 billion |
| Revenue (TTM) | $52.37 million |
| Net income (TTM) | ($463.58 million) |
| 1-year price change | 463.7% |
* 1-year price change calculated using August 13, 2025, as the reference date.
Company snapshot
- IonQ develops and commercializes general-purpose quantum computing systems, providing access to quantum computers with 20 qubits via major cloud platforms including AWS, Azure, and Google Cloud, as well as through its proprietary cloud service.
- Generates revenue by providing access to quantum computers through both pay-per-use and subscription models, leveraging partnerships with leading cloud providers.
- Serves enterprise clients, academic institutions, and research organizations seeking to leverage quantum computing for advanced problem-solving and innovation.
IonQ operates at the forefront of quantum computing, delivering scalable quantum hardware and cloud access to a diverse set of customers. The company leverages strategic partnerships with leading cloud providers to broaden its reach and accelerate the adoption of quantum solutions. IonQ’s focus on advancing quantum technology positions it as a key player in the emerging quantum computing industry.
Foolish take
Most insider sales involve the conversion of stock options into ordinary shares, which are then sold like any other stock. These transactions are usually pre-planned, with the trading schedule reported beforehand in the company’s proxy filings.
This trade report is no different. Inder Singh has been an IonQ director since 2021, accepting the role of lead independent director earlier this year. With executive-level experience from cable giant Comcast and microchip architecture specialist Arm Holdings, Singh adds valuable business and technology expertise to the boardroom.
80% of Singh’s annual compensation consists of restricted stock awards. He can access this income source by selling shares on the open market. So investors shouldn’t see this stock sale as an IonQ director backing out of his stock holdings due to concerns out the business, or stock valuation, or anything else. Singh is simply converting some of his stock awards into cash, as many business insiders do on a regular basis.
At the same time, Singh is getting an extraordinary cash value out of these shares, since IonQ’s stock soared to lofty heights at the end of 2024. The stock still commands a price-to-sales ratio of 162, even though quantum computing systems are many years away from doing useful work and fueling IonQ’s business operations.
Glossary
Insider transaction: A trade of company stock by an executive, director, or other person with access to material nonpublic information.
Net sold: The total number of shares sold minus any shares bought during a specific transaction or period.
Derivative-related transaction: A trade involving financial instruments like options, whose value depends on the price of an underlying asset.
Option exercise: The act of using the right to buy or sell shares at a set price under an options contract.
Open-market sale: Selling shares through public stock exchanges rather than in private or pre-arranged transactions.
SEC Form 4: A regulatory filing disclosing insider trades of company securities by officers, directors, or significant shareholders.
Option-based compensation: Employee or executive pay that includes the right to purchase company stock at a predetermined price.
Equity exposure: The degree to which an investor or insider is affected by changes in the value of company stock.
Shares outstanding: The total number of a company’s shares that are currently held by all shareholders.
Qubit: The basic unit of quantum information, used in quantum computing, analogous to a bit in classical computing.
Cloud platform: An online service providing access to computing resources, software, or hardware over the internet.
TTM: The 12-month period ending with the most recent quarterly report.