IonQ (NYSE:IONQ) Stock Sees 5.8% Increase - Is It Time to Invest?

IonQ, Inc. (NYSE:IONQ) experienced a notable increase in its stock price, trading up 5.8% on Tuesday. The stock reached a peak price of $44.59 before settling at $43.87. During the trading session, the company saw a total of 9,025,229 shares exchanged, reflecting a significant decline of 74% from its average trading volume of 34,233,129 shares. The previous closing price was $41.47.

Analysts Predict Positive Growth for IonQ

Multiple analysts have provided insights regarding IonQ's stock. DA Davidson initiated coverage of IonQ shares on December 19, rating them as a "buy" with a price target of $50.00. Needham & Company LLC also raised their price target from $13.00 to $18.00, maintaining a "buy" rating in a report dated November 7. Benchmark similarly elevated their price target from $12.00 to $22.00, endorsing the stock with a "buy" rating on the same day. Craig Hallum announced a further increase in their target, raising it from $22.00 to $45.00 while designating IonQ as a "buy" in a report released on December 20. The Goldman Sachs Group adjusted their price target from $16.00 to $30.00, granting a "neutral" rating in their report dated January 10. Overall, one analyst has given the stock a hold rating, while four have rated it as a buy. Data from MarketBeat.com indicates that IonQ holds an average rating of "Moderate Buy" with an average target price set at $33.00.

Performance Overview of IonQ Stock

The current market valuation of IonQ stands at approximately $8.95 billion. It has a price-to-earnings ratio of -51.08 and a beta of 2.41, indicating higher volatility compared to the market. The stock's 50-day moving average is $39.02, while the 200-day moving average is notably lower at $21.67. In its latest quarterly earnings report, IonQ disclosed earnings per share of ($0.24), slightly missing the consensus estimate of ($0.22) by $0.02. The company reported a staggering negative net margin of 457.85% alongside a negative return on equity calculated at 36.82%. For the reported quarter, IonQ generated $12.40 million in revenue, surpassing analyst expectations of $10.56 million. This performance reflects a remarkable year-over-year increase of 102.1% compared to the same quarter last year, where the EPS was reported at ($0.22). Forecasts predict that IonQ will report earnings per share of -0.86 for the current fiscal year.

Recent Insider Transactions at IonQ

In recent news regarding insider stock activities, Chief Revenue Officer Rima Alameddine sold 21,337 shares on December 11 at an average price of $29.73, amounting to a total of $634,349.01. Following this transaction, Alameddine holds 571,321 shares, valued at about $16,985,373.33, marking a 3.60% reduction in her ownership. Additionally, CEO Peter Hume Chapman sold 13,106 shares during a transaction on the same day, totaling $389,641.38 at the same average sale price. Post-transaction, Chapman continues to own 414,363 shares valued at roughly $12,319,011.99, which reflects a 3.07% decrease in his stake. Over the last 90 days, insiders have offloaded 44,223 shares worth approximately $1,314,652, while insiders collectively own 11.60% of the company's stock.

Institutional Investor Activities

A variety of institutional investors have recently adjusted their stakes in IonQ. The Manufacturers Life Insurance Company increased its holdings by 16.8% during the second quarter, owning a total of 115,782 shares now valued at $814,000 after acquiring an additional 16,642 shares. During the same quarter, Algert Global LLC entered a position in IonQ worth around $126,000. Handelsbanken Fonder AB raised its stake by 33.1% during the third quarter, reaching 69,200 shares valued at $605,000 after buying an additional 17,200 shares. Sovereign Financial Group Inc. also acquired a new position in the company valued at $266,000 during the third quarter. Additionally, Carnegie Investment Counsel invested approximately $5,036,000 in IonQ during this period. Institutional investors and hedge funds control around 41.42% of the total stock.

Company Background

IonQ, Inc. specializes in developing general-purpose quantum computing systems in the United States. The company offers access to its quantum computers with varying qubit capacities through several cloud platforms, including Amazon Web Services (AWS), Microsoft Azure Quantum, and Google Cloud Marketplace.

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