Rigetti Computing (NASDAQ:RGTI) Cut to "Strong Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Rigetti Computing to “strong sell” from “sell.” Analyst views remain mixed: MarketBeat reports a consensus “hold” rating and an average price target of $23.56.
• Rigetti’s latest quarterly results missed expectations: it reported an adjusted loss of $0.06 per share versus a $0.05 expected loss, while revenue of $1.41 million fell short of the $3.50 million estimate and declined 27.5% year over year.
• The stock was reported down 6.9%, and Rigetti’s shares were trading near their 52-week low of $9.19.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a report released on Saturday, Wall Street Zen reports.

Other analysts have also issued research reports about the stock. Weiss Ratings lowered shares of Rigetti Computing from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Wednesday. B. Riley Financial reduced their price target on shares of Rigetti Computing from $25.00 to $23.00 and set a "buy" rating on the stock in a research report on Monday, November 9th. Benchmark initiated coverage on shares of Rigetti Computing in a report on Monday, July 27th. They issued a "buy" rating and a $25.00 price target for the company. Rosenblatt Securities reaffirmed a "buy" rating and set a $40.00 price objective on shares of Rigetti Computing in a research report on Friday, August 7th. Finally, Needham & Company LLC lowered their price objective on shares of Rigetti Computing from $31.00 to $15.00 and set a "buy" rating for the company in a research report on Wednesday. Seven research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $23.56.

Rigetti Computing Trading Down 6.9%

Shares of RGTI opened at $9.62 on Friday. Rigetti Computing has a 52 week low of $9.19 and a 52 week high of $30.20. The firm has a market cap of $3.21 billion, a price-to-earnings ratio of -26.72 and a beta of 2.15. The stock has a 50 day moving average of $13.56 and a 200-day moving average of $16.59.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last posted its quarterly earnings results on Tuesday, November 10th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). Rigetti Computing had a negative net margin of 737.60% and a negative return on equity of 19.37%. The firm had revenue of $1.41 million for the quarter, compared to analyst estimates of $3.50 million. During the same period in the prior year, the company posted ($0.03) earnings per share. The business's revenue was down 27.5% on a year-over-year basis. On average, sell-side analysts predict that Rigetti Computing will post -0.26 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, COO David Rivas sold 9,038 shares of the firm's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $16.79, for a total value of $151,748.02. Following the sale, the chief operating officer directly owned 316,907 shares in the company, valued at $5,320,868.53. This trade represents a 2.77% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jeffrey A. Bertelsen sold 25,000 shares of the firm's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $15.00, for a total value of $375,000.00. Following the completion of the sale, the chief financial officer owned 168,067 shares in the company, valued at approximately $2,521,005. This represents a 12.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 163,689 shares of company stock valued at $2,570,890. Corporate insiders own 1.60% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Marshall Wace LLP grew its stake in shares of Rigetti Computing by 695.2% in the third quarter. Marshall Wace LLP now owns 202,238 shares of the company's stock worth $3,183,000 after purchasing an additional 176,807 shares in the last quarter. Headlands Technologies LLC bought a new stake in shares of Rigetti Computing during the third quarter valued at about $1,092,000. Empowered Funds LLC bought a new stake in shares of Rigetti Computing during the third quarter valued at about $181,000. Kovack Advisors Inc. raised its stake in shares of Rigetti Computing by 108.6% during the third quarter. Kovack Advisors Inc. now owns 159,072 shares of the company's stock valued at $2,487,000 after purchasing an additional 82,824 shares in the last quarter. Finally, Steward Partners Investment Advisory LLC lifted its holdings in Rigetti Computing by 333.6% in the third quarter. Steward Partners Investment Advisory LLC now owns 97,171 shares of the company's stock worth $1,529,000 after purchasing an additional 74,760 shares during the period. Institutional investors and hedge funds own 35.38% of the company's stock.

About Rigetti Computing

Rigetti Computing develops superconducting quantum computers and related software. Its work spans the design and manufacture of quantum processors, as well as systems that connect quantum processors with conventional computing infrastructure. The company offers access to its quantum computers and development tools through its Quantum Cloud Services platform. It also provides quantum hardware for on-premises use, serving customers and research organizations exploring quantum applications. Founded in 2013 by physicist Chad Rigetti, the company is based in Berkeley, California.

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