Companies

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

Published November 30, 2024

IonQ, Inc. (NYSE:IONQ) experienced a notable rise in its stock price on Friday, climbing 12.7% during trading. The stock peaked at $37.28 before closing at $36.29, a significant increase from its prior closing price of $32.21. During this trading session, 15,603,210 shares exchanged hands, marking a 68% increase in volume compared to the average session volume of 9,260,636 shares.

Analysts Updated Price Targets

Numerous analysts recently reviewed IonQ’s stock, resulting in new price target adjustments. The Goldman Sachs Group lowered its price target from $11.50 to $8.00, maintaining a "neutral" rating. Conversely, Needham & Company increased its target from $13.00 to $18.00 and assigned a "buy" rating on November 7. Furthermore, Craig Hallum also raised its target from $15.00 to $22.00 with a "buy" rating, echoing a similar move by Benchmark, which adjusted its target from $12.00 to $22.00 on the same day.

IonQ Stock Performance Overview

IonQ has shown impressive growth, boasting a fifty-day moving average price of $17.10 and a two-hundred-day average of $10.94. The company has a market cap of $7.94 billion and a P/E ratio of -44.80, with a beta of 1.89.

The firm recently declared its earnings on November 6, reporting an earnings per share (EPS) of ($0.24), which fell short of the consensus estimate of ($0.22) by $0.02. Nevertheless, IonQ noted a revenue of $12.40 million for the quarter, exceeding the expected $10.56 million. Compared to the same period last year, revenue increased by 102.1%. Analysts predict IonQ will report an EPS of -0.86 for the current fiscal year.

Insider Trading Activity

In related news, IonQ’s Chief Revenue Officer, Rima Alameddine, sold 22,875 shares on October 28 at an average price of $17.75, totaling $406,031.25. Post-sale, she retains 592,658 shares valued at approximately $10.52 million. This sale indicates a reduction of about 3.72% in her holdings. In the last quarter, insiders sold 66,000 shares, amounting to $972,331, indicating that corporate insiders hold 11.60% of the stock.

Institutional Investor Activities

Recent activity among hedge funds has seen various institutions adjusting their stakes in IonQ. For instance, Quest Partners LLC increased its stake by 4,824.2% in the second quarter, acquiring an additional 6,368 shares for a total of 6,500 shares worth $46,000. Other funds, including nVerses Capital LLC and Redwood Wealth Management Group LLC, also purchased new positions during the same period, reflecting growing institutional interest in IonQ. Currently, institutional investors hold 41.42% of the company’s shares.

Company Overview

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

Investment Considerations

Investors considering whether to invest in IonQ should review recent analyst ratings. Despite a current "Moderate Buy" rating, MarketBeat points out that leading analysts have identified five stocks that may offer more attractive investment opportunities than IonQ.

In conclusion, while IonQ’s stock price has recently surged, potential investors should weigh analyst insights and consider broader market conditions before making investment decisions.

IonQ, Investing, Stocks