IonQ (NYSE:IONQ) Trading 3.9% Higher - Still a Buy?

Key Points

• IonQ shares rose 3.9% to $39.12, with trading volume below average. The stock has a $14.9 billion market capitalization and trades below its 50-day and 200-day moving averages.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and an average price target of $69.92; however, ratings range from “Strong Sell” to “Buy,” reflecting differing views on the company.
• IonQ exceeded quarterly expectations, reporting a loss of $0.33 per share versus the projected $0.56 loss and revenue of $80.05 million, up 286.7% year over year. Despite the growth, the company posted a deeply negative net margin, and insiders sold shares during the quarter.

IonQ, Inc. (NYSE:IONQ - Get Free Report)'s stock price rose 3.9% during trading on Thursday . The company traded as high as $39.78 and last traded at $39.12. Approximately 13,720,130 shares traded hands during mid-day trading, a decline of 44% from the average session volume of 24,671,969 shares. The stock had previously closed at $37.64.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on IONQ shares. Wall Street Zen lowered shares of IonQ from a "sell" rating to a "strong sell" rating in a report on Saturday, August 8th. Wedbush began coverage on IonQ in a research report on Monday, August 3rd. They set an "outperform" rating and a $75.00 price target on the stock. Rosenblatt Securities restated a "buy" rating and set a $100.00 target price on shares of IonQ in a report on Thursday, August 6th. Northland Securities raised their target price on IonQ from $55.00 to $70.00 and gave the company an "outperform" rating in a research note on Monday, June 22nd. Finally, JPMorgan Chase & Co. lifted their price target on IonQ from $42.00 to $50.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. Nine research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, IonQ presently has an average rating of "Moderate Buy" and an average price target of $69.92.

IonQ Stock Up 3.9%

The firm has a market cap of $14.90 billion, a price-to-earnings ratio of -8.39 and a beta of 3.30. The business's fifty day moving average is $41.66 and its two-hundred day moving average is $43.52.

IonQ (NYSE:IONQ - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported ($0.33) earnings per share for the quarter, topping the consensus estimate of ($0.56) by $0.23. The firm had revenue of $80.05 million during the quarter, compared to analysts' expectations of $66.47 million. IonQ had a negative net margin of 553.27% and a negative return on equity of 22.29%. IonQ's revenue was up 286.7% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.70) EPS. Research analysts forecast that IonQ, Inc. will post -2.86 EPS for the current year.

Insider Activity

In related news, insider John W. Raymond sold 3,815 shares of the stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $55.01, for a total value of $209,863.15. Following the transaction, the insider directly owned 80,148 shares in the company, valued at $4,408,941.48. This represents a 4.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Gabrielle B. Toledano sold 2,757 shares of the stock in a transaction that occurred 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 completion of the transaction, the director owned 11,154 shares in the company, valued at $613,581.54. This represents a 19.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 9,329 shares of company stock valued at $513,216. 0.55% of the stock is currently owned by insiders.

Institutional Trading of IonQ

Several institutional investors and hedge funds have recently made changes to their positions in IONQ. Royal Bank of Canada increased its holdings in IonQ by 12.5% in the first quarter. Royal Bank of Canada now owns 134,176 shares of the company's stock valued at $2,962,000 after purchasing an additional 14,898 shares during the last quarter. Amundi acquired a new stake in IonQ in the first quarter worth $630,000. AQR Capital Management LLC boosted its position in shares of IonQ by 106.2% during the first quarter. AQR Capital Management LLC now owns 57,305 shares of the company's stock worth $1,265,000 after purchasing an additional 29,513 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of IonQ by 24.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 450,031 shares of the company's stock worth $9,932,000 after purchasing an additional 87,428 shares in the last quarter. Finally, Focus Partners Wealth grew its holdings in shares of IonQ by 30.3% in the 1st quarter. Focus Partners Wealth now owns 46,782 shares of the company's stock valued at $1,032,000 after buying an additional 10,881 shares during the period. Institutional investors own 41.42% of the company's stock.

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.

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