IonQ (NYSE:IONQ) Trading Up 1.1% - Time to Buy?

Key Points

• IonQ shares rose 1.1% to $39.44 in Friday trading, while volume was 47% below the average. The stock has a $15.03 billion market capitalization and trades below both its 50-day and 200-day moving averages.
• Analysts remain broadly optimistic, with a consensus rating of “Moderate Buy” and an average price target of $69.92, implying substantial upside from the current price.
• IonQ exceeded quarterly expectations, reporting an adjusted loss of $0.33 per share versus the expected $0.56 loss and revenue of $80.05 million, up 286.7% year over year. However, the company remains deeply unprofitable, with a negative net margin of 553.27%, while insiders sold $513,216 of stock over the past 90 days.

Shares of IonQ, Inc. (NYSE:IONQ - Get Free Report) rose 1.1% on Friday . The stock traded as high as $39.73 and last traded at $39.44. 12,931,968 shares changed hands during trading, a decline of 47% from the average daily volume of 24,604,213 shares. The stock had previously closed at $39.02.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on IONQ. Morgan Stanley set a $49.00 target price on IonQ in a research report on Thursday, August 6th. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $70.00 price target on shares of IonQ in a research note on Thursday, August 6th. Wedbush began coverage on shares of IonQ in a report on Monday, August 3rd. They issued an "outperform" rating and a $75.00 price objective on the stock. Benchmark restated a "buy" rating and set a $60.00 target price on shares of IonQ in a report on Thursday, August 6th. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $65.00 target price on shares of IonQ in a research report on Thursday, August 6th. Nine investment 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. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $69.92.

IonQ Stock Performance

The company has a market cap of $15.03 billion, a price-to-earnings ratio of -8.46 and a beta of 3.30. The firm has a fifty day moving average price of $41.44 and a 200 day moving average price of $43.56.

IonQ (NYSE:IONQ - Get Free Report) last issued 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 net margin of 553.27% and a negative return on equity of 22.29%. The firm's revenue for the quarter was up 286.7% on a year-over-year basis. During the same period in the previous year, the company earned ($0.70) earnings per share. On average, analysts expect that IonQ, Inc. will post -2.86 EPS for the current fiscal year.

Insider Activity at IonQ

In other IonQ news, Director Kathryn K. Chou sold 2,757 shares of the company's stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $55.02, for a total value of $151,690.14. Following the sale, the director owned 62,608 shares in the company, valued at $3,444,692.16. This represents a 4.22% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Gabrielle B. Toledano sold 2,757 shares of the firm's 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 $151,662.57. Following the completion of the sale, the director directly owned 11,154 shares of the company's stock, valued at approximately $613,581.54. The trade was a 19.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 9,329 shares of company stock worth $513,216. Insiders own 0.55% of the company's stock.

Institutional Investors Weigh In On IonQ

Large investors have recently added to or reduced their stakes in the business. Bogart Wealth LLC increased its holdings in shares of IonQ by 24.4% in the first quarter. Bogart Wealth LLC now owns 1,273 shares of the company's stock valued at $37,000 after purchasing an additional 250 shares during the last quarter. Beaird Harris Wealth Management LLC boosted its holdings in shares of IonQ by 117.4% during the 3rd quarter. Beaird Harris Wealth Management LLC now owns 500 shares of the company's stock worth $31,000 after buying an additional 270 shares during the period. EverSource Wealth Advisors LLC grew its stake in IonQ by 50.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 831 shares of the company's stock valued at $36,000 after buying an additional 279 shares during the last quarter. ABN Amro Investment Solutions grew its stake in IonQ by 2.5% in the 1st quarter. ABN Amro Investment Solutions now owns 12,314 shares of the company's stock valued at $355,000 after buying an additional 295 shares during the last quarter. Finally, Versant Capital Management Inc raised its holdings in IonQ by 26.1% in the 2nd quarter. Versant Capital Management Inc now owns 1,491 shares of the company's stock valued at $79,000 after acquiring an additional 309 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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