Rigetti Computing (NASDAQ:RGTI) Given New $15.00 Price Target at Needham & Company LLC

Key Points

• Needham cut its price target on Rigetti Computing to $15 from $31 but maintained a Buy rating; the new target implies 23.46% upside from the prior close. Analysts’ average rating is Hold, with an average price target of $26.
• Rigetti reported quarterly revenue of $1.41 million, down 27.5% year over year and below estimates, while its $0.06-per-share loss also missed expectations. Shares opened Wednesday at $12.15, down 6.4%.
• The company reported 99.5% median two-qubit fidelity on its 108-qubit system and about $497 million in cash and investments, but elevated capital spending is expected to continue through 2027 as commercialization remains years away.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) had its target price dropped by investment analysts at Needham & Company LLC from $31.00 to $15.00 in a research note issued to investors on Wednesday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Needham & Company LLC's price target indicates a potential upside of 23.46% from the company's previous close.

RGTI has been the topic of several other research reports. Wedbush began coverage on shares of Rigetti Computing in a report on Monday, August 3rd. They set an "outperform" rating and a $40.00 price objective on the stock. Zacks Research raised shares of Rigetti Computing from a "strong sell" rating to a "hold" rating in a research note on Tuesday, October 6th. Weiss Ratings upgraded shares of Rigetti Computing from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, October 21st. B. Riley Financial decreased their target price on shares of Rigetti Computing from $25.00 to $23.00 and set a "buy" rating for the company in a research report on Monday. Finally, Benchmark began coverage on shares of Rigetti Computing in a research report on Monday, July 27th. They set a "buy" rating and a $25.00 target price for the company. Six equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $26.00.

Rigetti Computing Stock Down 6.4%

Shares of NASDAQ:RGTI opened at $12.15 on Wednesday. Rigetti Computing has a twelve month low of $9.19 and a twelve month high of $32.18. The stock's 50 day moving average is $13.84 and its 200-day moving average is $16.78. The firm has a market capitalization of $4.06 billion, a price-to-earnings ratio of -13.50 and a beta of 2.15.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last issued its earnings results on Tuesday, November 10th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.01). Rigetti Computing had a negative return on equity of 17.50% and a negative net margin of 2,189.54%. The firm had revenue of $1.41 million during the quarter, compared to the consensus estimate of $3.51 million. During the same quarter in the prior year, the business earned ($0.03) earnings per share. Rigetti Computing's revenue for the quarter was down 27.5% on a year-over-year basis. Equities research analysts anticipate that Rigetti Computing will post -0.26 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Jeffrey A. Bertelsen sold 25,000 shares of the stock in a transaction on Thursday, September 3rd. The stock was 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 directly owned 168,067 shares of the company's stock, valued at approximately $2,521,005. This represents a 12.95% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Andrew Bestwick sold 5,791 shares of the firm's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $16.81, for a total value of $97,346.71. Following the transaction, the chief technology officer owned 1,036,121 shares in the company, valued at approximately $17,417,194.01. This trade represents a 0.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 163,689 shares of company stock worth $2,570,890 in the last ninety days. Corporate insiders own 1.60% of the company's stock.

Institutional Trading of Rigetti Computing

Several institutional investors and hedge funds have recently made changes to their positions in the company. Bank of New York Mellon Corp lifted its position in shares of Rigetti Computing by 15.5% during the first quarter. Bank of New York Mellon Corp now owns 1,297,462 shares of the company's stock valued at $18,216,000 after purchasing an additional 174,126 shares in the last quarter. Wellington Management Group LLP boosted its holdings in Rigetti Computing by 13.4% during the second quarter. Wellington Management Group LLP now owns 538,449 shares of the company's stock worth $10,403,000 after purchasing an additional 63,658 shares during the last quarter. Swiss National Bank grew its position in Rigetti Computing by 2.2% in the 1st quarter. Swiss National Bank now owns 653,300 shares of the company's stock worth $9,172,000 after purchasing an additional 14,100 shares in the last quarter. Burr Financial Services LLC bought a new stake in Rigetti Computing in the 3rd quarter worth about $6,181,000. Finally, California State Teachers Retirement System grew its position in Rigetti Computing by 22.8% in the 1st quarter. California State Teachers Retirement System now owns 377,955 shares of the company's stock worth $5,306,000 after purchasing an additional 70,179 shares in the last quarter. Hedge funds and other institutional investors own 35.38% of the company's stock.

Key Stories Impacting Rigetti Computing

Here are the key news stories impacting Rigetti Computing this week:

• Positive Sentiment: Rigetti reported 99.5% median two-qubit fidelity on its 108-qubit system, a technical milestone supporting its chiplet-based quantum processor roadmap. The company also reported approximately $497 million in cash and investments. Rigetti Computing Reports Third Quarter 2026 Financial Results
• Negative Sentiment: Quarterly revenue was $1.41 million, down 27.5% year over year and well below analyst expectations of roughly $3.5 million. The reported $0.06-per-share loss also missed the consensus estimate of a $0.05 loss, reinforcing concerns about weak near-term commercial traction. Rigetti Computing falls on revenue miss and weaker-than-expected guidance
• Negative Sentiment: Management signaled elevated capital expenditures will continue through 2027, rather than returning to 2025 levels. With commercialization estimated to be about three years away, ongoing investment could mean continued cash burn before meaningful sales growth. Rigetti Computing Stock Sinks Nearly 7% After Hours as CFO Signals Another Year of Heavy Spending

Rigetti Computing Company Profile

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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