IonQ (NYSE:IONQ) Shares Up 9.1% – Still a Buy?

IonQ, Inc. (NYSE:IONQ)’s stock price traded up 9.1% on Thursday. The company traded as high as $34.36 and last traded at $34.2940. 47,496,395 shares traded hands during mid-day trading, an increase of 92% from the average daily volume of 24,735,877 shares. The stock had previously closed at $31.42.

More IonQ News

Here are the key news stories impacting IonQ this week:

• Positive Sentiment: Sector rebound: IonQ shares are participating in a broader recovery among quantum-computing stocks, alongside gains in Rigetti Computing and D-Wave. The rebound suggests some investors view the recent selloff as an opportunity rather than a deterioration in the industry outlook. Quantum Computing Stocks Rebound After Dilution Scare
• Positive Sentiment: Cybersecurity expansion: IonQ’s planned acquisition of Elisity, valued at up to $1.3 billion in stock, would broaden the company into Zero Trust and quantum-era cybersecurity. Supporters believe the deal could add recurring revenue, enterprise relationships, and a commercial application for IonQ’s technology. IonQ to Buy Elisity for Up to $1.3B in Quantum Security Push
• Positive Sentiment: Capital for growth: IonQ priced a $2.0 billion equity offering, saying the proceeds will accelerate commercialization of its full-stack quantum platform. Rosenblatt reaffirmed a Buy rating, while Zacks upgraded the shares to a Rank #2 (Buy), providing additional bullish support. IonQ Announces Pricing of $2.0 Billion Equity Offering
• Neutral Sentiment: Long-term thesis remains speculative: Analysts and commentary point to IonQ’s partnerships, growing backlog, and cybersecurity strategy, but commercialization and the ability to convert acquisitions into earnings remain unproven.
• Negative Sentiment: Dilution and profitability concerns: The Elisity all-stock transaction and $2 billion share offering increase the number of outstanding shares, pressuring existing ownership and explaining the prior selloff. IonQ remains unprofitable, with substantial recent losses, while investors await clearer guidance on the acquisition’s financial contribution. IonQ Stock Tumbles on $2 Billion Equity Offering

Analyst Ratings Changes

Several equities research analysts have weighed in on IONQ shares. Northland Securities increased their target price on shares of IonQ from $55.00 to $70.00 and gave the stock an “outperform” rating in a report on Monday, June 22nd. Mizuho lowered their price objective on shares of IonQ from $61.00 to $52.00 and set an “outperform” rating for the company in a research report on Wednesday, September 9th. Morgan Stanley dropped their price objective on IonQ from $49.00 to $43.00 and set an “equal weight” rating on the stock in a research note on Thursday. Needham & Company LLC reiterated a “buy” rating and set a $65.00 target price on shares of IonQ in a report on Wednesday, September 9th. Finally, Jefferies Financial Group reissued a “buy” rating and issued a $80.00 target price on shares of IonQ in a research note on Wednesday, September 9th. Ten investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, IonQ presently has a consensus rating of “Moderate Buy” and a consensus price target of $63.33.

IonQ Stock Performance

The firm has a market capitalization of $13.07 billion, a P/E ratio of -7.36 and a beta of 3.36. The firm’s 50-day moving average is $41.04 and its 200 day moving average is $44.81.

IonQ (NYSE:IONQ) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.33) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.56) by $0.23. The firm had revenue of $80.05 million for the quarter, compared to the consensus estimate of $66.47 million. IonQ had a negative return on equity of 22.29% and a negative net margin of 553.27%. The company’s revenue for the quarter was up 286.7% on a year-over-year basis. During the same quarter last year, the business posted ($0.70) EPS. As a group, research analysts expect that IonQ, Inc. will post -2.11 EPS for the current fiscal year.

Insider Buying and Selling

In other IonQ news, insider John Raymond sold 2,407 shares of the firm’s stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $37.21, for a total value of $89,564.47. Following the completion of the transaction, the insider directly owned 77,741 shares in the company, valued at $2,892,742.61. This trade represents a 3.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.55% of the company’s stock.

Hedge Funds Weigh In On IonQ

Several institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. acquired a new stake in IonQ during the second quarter worth approximately $1,112,945,000. Bank of America Corp DE bought a new position in shares of IonQ during the second quarter worth approximately $344,757,000. Bank of New York Mellon Corp bought a new position in shares of IonQ during the second quarter worth approximately $113,863,000. Legal & General Group Plc bought a new stake in shares of IonQ in the second quarter valued at approximately $82,126,000. Finally, Deutsche Bank AG bought a new stake in shares of IonQ during the 2nd quarter valued at $27,836,000. 41.42% of the stock is currently owned by institutional investors and hedge funds.

IonQ Company Profile

IonQ, Inc is a quantum computing company that develops and commercializes quantum computers based on trapped-ion technology. Its systems are designed to perform specialized computations that may eventually support applications in areas such as optimization, materials science, drug discovery, financial modeling and artificial intelligence.

The company offers access to its quantum processors through cloud platforms, including Amazon Web Services’ Amazon Braket, Microsoft Azure Quantum and Google Cloud.