IonQ (NYSE:IONQ) announced its quarterly earnings on September 12, 2023, reporting a loss of $3.58 earnings per share (EPS). This figure fell short of analysts’ expectations, which had anticipated a loss of $0.44 per share, resulting in a significant miss of $3.14 per share, according to Zacks.
Despite the disappointing EPS, IonQ’s revenue for the quarter reached $39.87 million, exceeding analyst forecasts of $26.99 million. This represents a remarkable increase of 221.5% compared to the same period last year, when the company reported a loss of $0.24 per share. The current quarter also reflected a negative net margin of 1,836.32% and a negative return on equity of 127.06%.
Stock Performance and Analyst Ratings
Following the earnings release, IonQ’s stock saw a slight increase, trading up 2.9% to reach $59.07. During the trading session, the company recorded a volume of 32,627,778 shares, which is higher than its average volume of 31,936,684. The stock has experienced a 52-week range from a low of $17.88 to a high of $84.64, with a market capitalization of approximately $20.52 billion and a price-to-earnings (P/E) ratio of -11.04.
Analysts have expressed mixed views on IonQ’s performance, with various research firms issuing reports on the stock. Wolfe Research initiated coverage with a “peer perform” rating, while Rosenblatt Securities raised their price target from $70.00 to $100.00 and maintained a “buy” rating. Morgan Stanley adjusted its target from $32.00 to $58.00 and assigned an “equal weight” rating. Currently, the stock holds an average rating of “Hold” with a target price of $68.11, according to data from MarketBeat.
Insider Transactions and Hedge Fund Activity
Recent insider trading activity has also attracted attention. On September 12, 2023, insider Robert T. Cardillo sold 8,773 shares at an average price of $50.52, amounting to a total of $443,211.96. Following this transaction, Cardillo retained 37,436 shares, valued at approximately $1,891,266.72, reflecting an 18.99% decrease in ownership.
Another insider, Paul T. Dacier, sold 4,175 shares on September 11, 2023, for a total of $185,370.00. After this sale, Dacier’s ownership decreased by 3.52%, leaving him with 114,454 shares worth $5,081,757.60. In total, insiders have sold 113,622 shares worth $4,931,896 in the past three months, with insiders currently holding 5.20% of the company’s stock.
Hedge fund activity shows a growing interest in IonQ. In the second quarter, EverSource Wealth Advisors LLC increased its stake by 50.5%, acquiring an additional 279 shares for a total of 831 shares valued at $36,000. Other notable positions were taken by Darwin Wealth Management LLC, Cerity Partners LLC, and American Century Companies Inc., with institutional investors and hedge funds collectively owning 41.42% of IonQ’s stock.
About IonQ
IonQ, Inc. specializes in developing general-purpose quantum computing systems in the United States. The company offers access to its quantum computers through cloud platforms, including Amazon Web Services (AWS), Microsoft’s Azure Quantum, and Google’s Cloud Marketplace, as well as through its own cloud service.
As the quantum computing industry continues to evolve, IonQ’s performance and strategic direction will be closely monitored by investors and analysts alike.
