IonQ (NYSE:IONQ) Shares Rise 5.8% - Is It Time to Buy?

IonQ, Inc. (NYSE:IONQ) recently saw its stock price increase by 5.8% on Tuesday. The company's shares hit a high of $44.59 before settling at $43.87. During the trading day, a total of 9,025,229 shares changed hands, which represents a significant decline of 74% compared to the average daily volume of 34,233,129 shares. The stock had closed at $41.47 the previous day.

Wall Street Analysts Forecast Growth

Multiple analysts have provided their assessments of IonQ shares. DA Davidson initiated coverage of IonQ on December 19, giving it a "buy" rating and setting a price target of $50.00. On November 7, Needham & Company LLC increased its price target from $13.00 to $18.00 while maintaining a "buy" rating for the company. Benchmark also raised its price target from $12.00 to $22.00 the same day. Craig Hallum further boosted the target from $22.00 to $45.00, labeling the stock as a "buy" on December 20. Lastly, The Goldman Sachs Group raised its target from $16.00 to $30.00 with a "neutral" rating. Overall, one analyst rates the stock as a hold, while four others suggest buying, with an average rating of "Moderate Buy" and an average price target of $33.00.

IonQ Price Performance

As implied by its recent rise, IonQ's stock has a market capitalization of $8.95 billion, with a price-to-earnings ratio of -51.08 and a beta of 2.41, indicating its volatility compared to the market. The current fifty-day moving average sits at $39.02, whereas the 200-day moving average is at $21.67.

The most recent earnings report from IonQ was on November 6, when it reported an earnings loss of ($0.24) per share, slightly missing consensus estimates of ($0.22). The company had a negative net margin of 457.85% and a negative return on equity of 36.82%. Revenue for the quarter reached $12.40 million, exceeding analysts' predictions of $10.56 million and reflecting a 102.1% year-over-year increase from the previous year’s revenue. Analysts anticipate that IonQ will post earnings of -$0.86 per share in the current fiscal year.

Insider Activity at IonQ

In insider trading news, Chief Revenue Officer Rima Alameddine sold 21,337 shares of IonQ on December 11, at an average price of $29.73, resulting in total proceeds of $634,349.01. After this sale, she holds 571,321 shares of the company, now valued at approximately $16,985,373.33, reflecting a 3.60% decrease in ownership. Similarly, CEO Peter Hume Chapman sold 13,106 shares in a transaction on the same date, also at an average price of $29.73, valued at approximately $389,641.38. Following his sale, he owns 414,363 shares worth about $12,319,011.99, a 3.07% decrease in his stock position. During the past three months, insiders have sold a combined total of 44,223 shares worth $1,314,652. Currently, insiders hold 11.60% of the company’s stock.

Institutional Investment in IonQ

Recent changes in institutional holdings also highlight the company's growing interest. The Manufacturers Life Insurance Company boosted its stake in IonQ by 16.8% during the second quarter, owning 115,782 shares valued at $814,000 after acquiring an additional 16,642 shares. Other investors, such as Algert Global LLC and Handelsbanken Fonder AB, increased their holdings or entered new positions in IonQ stock, with institutional and hedge funds now possessing 41.42% of IonQ's shares.

About IonQ

IonQ, Inc. focuses on creating general-purpose quantum computing systems in the United States. The company provides access to its quantum computers, which feature varying qubit capacities, through major cloud platforms like Amazon Web Services (AWS), Microsoft's Azure Quantum, and Google's Cloud Marketplace.

Investment Considerations

Before considering an investment in IonQ, it is essential for potential investors to conduct their own research or consult with a financial advisor. While the company has a "Moderate Buy" rating according to analysts, there may be better investment opportunities available in the market.

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