IonQ (NYSE:IONQ) Shares Rise 12.7% - Is Now the Time to Buy?

IonQ, Inc. (NYSE:IONQ) saw its stock price increase by 12.7% during trading on Friday. The stock reached a high of $37.28 before settling at $36.29. During this mid-day trading session, over 15.6 million shares were exchanged, marking a 68% jump from the average volume of about 9.3 million shares. This rise followed a previous closing price of $32.21.

Analysts Set New Price Targets

Recent comments from various equity research analysts have influenced IonQ's stock outlook. The Goldman Sachs Group adjusted their target price, reducing it from $11.50 to $8.00, categorizing the stock as "neutral" in a report from August 9th. Conversely, Needham & Company LLC raised their target from $13.00 to $18.00, assigning a "buy" rating on November 7th. Craig Hallum similarly increased their target price from $15.00 to $22.00, also giving a "buy" recommendation on the same date. Benchmark raised its target price from $12.00 to $22.00, labeling IonQ as a "buy" too.

IonQ Price Performance

The company's stock has a fifty-day moving average price of $17.10 and a two-hundred day average of $10.94. IonQ holds a market capitalization of $7.94 billion, with a PE ratio of -44.80 and a beta of 1.89.

On November 6th, IonQ announced its quarterly earnings. It reported an earnings per share (EPS) of ($0.24), which was below the consensus estimate of ($0.22) by $0.02. In terms of revenue, the company reported $12.40 million as opposed to the consensus estimate of $10.56 million. However, it faced a net margin of -457.85% and a return on equity of -36.82%. When compared to the same quarter last year, revenue increased significantly by 102.1%. Last year, the EPS stood at ($0.22). Analysts anticipate that IonQ will report an EPS of -0.86 for the current fiscal year.

Insider Transactions at IonQ

In other developments, CRO Rima Alameddine sold 22,875 shares of IonQ stock on October 28th at an average price of $17.75, resulting in a total sale value of approximately $406,031.25. Post-sale, Alameddine holds around 592,658 shares valued at about $10.5 million. This transaction indicates a 3.72% reduction in their holdings. Additionally, recent insider trading activity revealed that 66,000 shares were sold in the last quarter, valued at nearly $972,331, with corporate insiders now owning approximately 11.60% of the total shares.

Hedge Funds Weigh In On IonQ

Recent activity among hedge funds and institutional investors shows an increased interest in IonQ. For instance, Quest Partners LLC substantially increased its holdings by 4,824.2% in the second quarter, now owning 6,500 shares worth roughly $46,000 after adding 6,368 shares. nVerses Capital LLC acquired a new position worth $72,000 in the third quarter, while Redwood Wealth Management Group LLC invested $67,000 in IonQ shares during the same period. Other investors like Impact Partnership Wealth LLC and Arete Wealth Advisors LLC also established new positions in the third quarter worth about $89,000 and $91,000 respectively. Overall, institutional investors hold approximately 41.42% of IonQ's shares.

IonQ Company Profile

IonQ, Inc is engaged in developing general-purpose quantum computing systems based in the United States. The company provides access to quantum computers of various qubit capacities primarily through cloud platforms like Amazon Web Services (AWS), Microsoft's Azure Quantum, and Google's Cloud Marketplace.

How Should Investors Move Forward?

For potential investors considering IonQ, it’s crucial to conduct thorough research. Currently, while analysts have given IonQ a "Moderate Buy" rating, other top-rated stocks may present better opportunities. It is advised for investors to diversify and consider multiple options before making investment decisions.

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