IonQ (NYSE:IONQ) Trading Up 3% - Should You Buy?

Key Points

• IonQ shares rose 3% in mid-day trading, reaching as high as $66.81 on heavier-than-normal volume, reflecting renewed investor interest in the stock.
• The rally appears tied to U.S. government support for quantum computing, including $2.013 billion in CHIPS and Science Act grants for nine quantum companies, which has fueled speculation that IonQ could benefit.
• Wall Street remains generally constructive: IonQ has a Moderate Buy consensus rating with an average price target of $68.63, though analysts are mixed and some warn the stock may be volatile if the broader quantum trade cools.

Shares of IonQ, Inc. (NYSE:IONQ - Get Free Report) traded up 3% during mid-day trading on Wednesday . The stock traded as high as $66.81 and last traded at $65.5590. 29,417,348 shares changed hands during mid-day trading, an increase of 12% from the average session volume of 26,373,021 shares. The stock had previously closed at $63.62.

IonQ News Roundup

Here are the key news stories impacting IonQ this week:

• Positive Sentiment: The U.S. Department of Commerce announced $2.013 billion in CHIPS and Science Act grants to nine quantum computing companies, boosting confidence that IonQ could be a beneficiary of expanded federal support for the sector. Article: QTUM ETF Crosses $5 Billion Even As IBM, Rigetti, IonQ, D-Wave Cool Off
• Positive Sentiment: Investors are speculating that IonQ could be among the future winners of the U.S. government’s push to accelerate quantum technology development, which has helped drive renewed buying interest in IonQ, Inc. (IONQ). Article: What Is Going On With IonQ Stock On Tuesday?
• Positive Sentiment: Analysts and traders are also pointing to the possibility of a short squeeze, which could add further upside if bearish bets are forced to cover. Article: Federal backing triggered a rally in IonQ stock. A short squeeze could take it even higher.
• Neutral Sentiment: Some articles suggest the recent surge may be part of a broader quantum stock rotation rather than a change in IonQ’s fundamentals, with investors chasing the whole theme after the federal funding news. Article: IonQ: Why Quantum Hype Returned
• Neutral Sentiment: Coverage also notes that some quantum names may have “cooled off” after the initial burst, suggesting the rally could become choppy as investors separate likely winners from the rest of the group. Article: QTUM ETF Crosses $5 Billion Even As IBM, Rigetti, IonQ, D-Wave Cool Off
• Negative Sentiment: One analysis warned that IonQ’s quantum narrative could get “messier” after SkyWater-related developments, implying more execution and competitive risks for the stock if enthusiasm fades. Article: IonQ: Quantum Story May Get Messier After SkyWater

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. Rosenblatt Securities reaffirmed a "buy" rating and issued a $100.00 price objective on shares of IonQ in a research report on Thursday, February 26th. Northland Securities assumed coverage on IonQ in a research report on Monday, April 20th. They issued an "outperform" rating and a $55.00 price objective on the stock. Benchmark lowered their price objective on IonQ from $75.00 to $65.00 and set a "buy" rating on the stock in a research report on Thursday, February 26th. Morgan Stanley set a $48.50 price objective on IonQ in a research report on Thursday, May 7th. Finally, Weiss Ratings raised IonQ from a "sell (d-)" rating to a "sell (d+)" rating in a research report on Monday, May 11th. Ten research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, IonQ presently has a consensus rating of "Moderate Buy" and an average price target of $68.63.

IonQ Trading Up 3.0%

The firm has a market capitalization of $24.47 billion, a PE ratio of -234.14 and a beta of 3.05. The business's 50 day simple moving average is $41.59 and its two-hundred day simple moving average is $43.30.

IonQ (NYSE:IONQ - Get Free Report) last announced its earnings results 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%. IonQ's quarterly revenue was up 754.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.14) earnings per share. As a group, equities research analysts anticipate that IonQ, Inc. will post -2.26 earnings per share for the current year.

Insider Buying and Selling at IonQ

In other IonQ news, insider John W. Raymond sold 2,800 shares of the business's stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $33.34, for a total transaction of $93,352.00. Following the completion of the sale, the insider directly owned 83,963 shares in the company, valued at approximately $2,799,326.42. The trade was a 3.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director William J. Teuber, Jr. bought 3,000 shares of the firm's stock in a transaction on Friday, February 27th. The shares were bought at an average price of $38.38 per share, with a total value of $115,140.00. Following the completion of the purchase, the director owned 9,413 shares in the company, valued at approximately $361,270.94. The trade was a 46.78% increase in their position. The SEC filing for this purchase provides additional information. In the last ninety days, insiders sold 11,738 shares of company stock worth $485,332. Insiders own 5.20% of the company's stock.

Institutional Investors Weigh In On IonQ

Hedge funds have recently added to or reduced their stakes in the stock. Bogart Wealth LLC increased its stake in shares of IonQ by 24.4% in the 1st quarter. Bogart Wealth LLC now owns 1,273 shares of the company's stock worth $37,000 after purchasing an additional 250 shares in the last quarter. Lauer Wealth LLC increased its stake in shares of IonQ by 5.3% in the 4th quarter. Lauer Wealth LLC now owns 5,107 shares of the company's stock worth $229,000 after purchasing an additional 255 shares in the last quarter. Beaird Harris Wealth Management LLC increased its stake in shares of IonQ by 117.4% in the 3rd quarter. Beaird Harris Wealth Management LLC now owns 500 shares of the company's stock worth $31,000 after purchasing an additional 270 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of IonQ by 50.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 831 shares of the company's stock worth $36,000 after purchasing an additional 279 shares in the last quarter. Finally, ABN Amro Investment Solutions increased its stake in shares of IonQ by 2.5% in the 1st quarter. ABN Amro Investment Solutions now owns 12,314 shares of the company's stock worth $355,000 after purchasing an additional 295 shares in the last quarter. 41.42% of the stock is currently owned by hedge funds and other institutional investors.

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.

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