Encore Global Management LP Makes New Investment in Rigetti Computing, Inc. $RGTI

Key Points

• Encore Global Management initiated a position in Rigetti Computing, buying 120,000 shares valued at approximately $1.69 million. Institutional investors collectively own 35.38% of the company.
• Rigetti reported first-quarter revenue of $4.40 million, up 198.9% year over year, and an adjusted loss of $0.04 per share versus analysts’ expected loss of $0.05. However, the company remains unprofitable, with a negative net margin of 2,789.71%.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and a $32 price target, though RGTI shares have fallen 7.2% and insiders sold 728,901 shares worth $17.5 million over the past three months.

Encore Global Management LP purchased a new stake in Rigetti Computing, Inc. (NASDAQ:RGTI - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 120,000 shares of the company's stock, valued at approximately $1,685,000.

A number of other institutional investors also recently modified their holdings of RGTI. Amundi grew its stake in Rigetti Computing by 124.8% in the 1st quarter. Amundi now owns 60,012 shares of the company's stock valued at $843,000 after buying an additional 33,317 shares in the last quarter. EverSource Wealth Advisors LLC boosted its holdings in shares of Rigetti Computing by 31.8% in the first quarter. EverSource Wealth Advisors LLC now owns 4,651 shares of the company's stock worth $65,000 after acquiring an additional 1,121 shares during the period. California State Teachers Retirement System boosted its holdings in shares of Rigetti Computing by 22.8% in the first quarter. California State Teachers Retirement System now owns 377,955 shares of the company's stock worth $5,306,000 after acquiring an additional 70,179 shares during the period. Quantinno Capital Management LP grew its position in shares of Rigetti Computing by 83.6% in the first quarter. Quantinno Capital Management LP now owns 60,040 shares of the company's stock valued at $843,000 after purchasing an additional 27,342 shares in the last quarter. Finally, Granahan Investment Management LLC raised its stake in shares of Rigetti Computing by 47.7% during the 1st quarter. Granahan Investment Management LLC now owns 326,721 shares of the company's stock valued at $4,587,000 after purchasing an additional 105,494 shares during the period. 35.38% of the stock is currently owned by hedge funds and other institutional investors.

Rigetti Computing Stock Down 7.2%

NASDAQ:RGTI opened at $14.52 on Wednesday. The business's 50-day moving average price is $19.60 and its two-hundred day moving average price is $18.53. Rigetti Computing, Inc. has a twelve month low of $12.53 and a twelve month high of $58.15. The stock has a market cap of $4.83 billion, a P/E ratio of -16.69 and a beta of 1.95.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last issued its quarterly earnings results on Monday, May 11th. The company reported ($0.04) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.05) by $0.01. The firm had revenue of $4.40 million during the quarter, compared to the consensus estimate of $4.09 million. Rigetti Computing had a negative return on equity of 10.40% and a negative net margin of 2,789.71%.The company's revenue for the quarter was up 198.9% on a year-over-year basis. During the same quarter last year, the company posted ($0.05) EPS. On average, equities research analysts expect that Rigetti Computing, Inc. will post -0.22 EPS for the current fiscal year.

Analysts Set New Price Targets

Several brokerages have commented on RGTI. Weiss Ratings upgraded Rigetti Computing from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday, July 21st. Northland Securities assumed coverage on shares of Rigetti Computing in a report on Monday, April 20th. They issued a "market perform" rating and a $20.00 price target on the stock. Mizuho cut their price objective on shares of Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating for the company in a research report on Tuesday, May 12th. Rosenblatt Securities reaffirmed a "buy" rating and set a $40.00 price objective on shares of Rigetti Computing in a research note on Thursday, June 11th. Finally, Benchmark began coverage on shares of Rigetti Computing in a report on Monday. They set a "buy" rating and a $25.00 target price on the stock. Seven research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $32.00.

Trending Headlines about Rigetti Computing

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

• Positive Sentiment: Rigetti announced an expanded collaboration with Hewlett Packard Enterprise and the Pittsburgh Supercomputing Center to build TangleLab, a hybrid quantum-classical supercomputing testbed. Rigetti will provide a 9-qubit Novera system, with construction expected to begin in September and operations targeted for 2027. The project is backed by a $5 million National Science Foundation grant. Rigetti Expands Collaboration with HPE and Pittsburgh Supercomputing Center
• Positive Sentiment: Benchmark initiated coverage of RGTI with a Buy rating and a $25 price target, adding to the bullish analyst view of the quantum-computing sector. Benchmark also argued that multiple hardware platforms could succeed as enterprise adoption expands. Benchmark quantum sector outlook
• Positive Sentiment: Rigetti’s commercial momentum includes sharply higher first-quarter revenue and potential demand for its Novera systems, Cepheus processors and cloud services. Recent research suggests AI and cloud adoption could accelerate the commercialization of quantum computing. Quantum stocks after the AI infrastructure pullback
• Neutral Sentiment: Investor attention is elevated ahead of Rigetti’s upcoming second-quarter results. Investors will focus on Novera revenue, Cepheus-1 adoption, progress toward higher-fidelity systems and whether the company can meet its technology roadmap. Rigetti upcoming Q2 results
• Negative Sentiment: The stock is being affected by a sector-wide retreat after concerns about heavy AI-infrastructure spending, while investors also reassess quantum valuations after sharp recent rallies in comparable companies such as D-Wave Quantum.
• Negative Sentiment: Rigetti remains unprofitable, and its very high valuation relative to current revenue leaves the shares sensitive to delays in commercialization or disappointing quarterly guidance. Reported insider activity also shows selling rather than open-market purchases over the past six months.

Insider Buying and Selling at Rigetti Computing

In other news, CTO David Rivas sold 499,328 shares of Rigetti Computing stock in a transaction on Friday, May 29th. The shares were sold at an average price of $25.40, for a total transaction of $12,682,931.20. Following the completion of the sale, the chief technology officer directly owned 325,945 shares of the company's stock, valued at approximately $8,279,003. The trade was a 60.50% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Ray O. Johnson sold 84,944 shares of the stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $20.55, for a total transaction of $1,745,599.20. Following the transaction, the director owned 95,537 shares in the company, valued at $1,963,285.35. The trade was a 47.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 728,901 shares of company stock worth $17,546,343 over the last three months. 1.60% of the stock is owned by insiders.

Rigetti Computing Company Profile

Rigetti Computing is a pioneering quantum computing company that designs and manufactures superconducting quantum processors alongside a complementary software stack. Founded in 2013 by CEO Chad Rigetti, the company has developed end-to-end quantum systems—from cryogenic hardware to control electronics—to advance the performance and scalability of quantum machines.

At the core of Rigetti's offering is its Quantum Cloud Services (QCS) platform, which enables developers and enterprises to access quantum processing units (QPUs) and hybrid quantum-classical workflows via the cloud.

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