Rigetti Computing (NASDAQ:RGTI) Shares Down 2.4% - Here's Why

Key Points

• Rigetti Computing shares fell 2.4% to $15.25 in Friday trading, with volume down 54% from its average.
• Analyst sentiment is mixed: seven analysts rate the stock a Buy, four Hold, and two Sell, resulting in an overall “Hold” rating and a consensus price target of $30.67.
• Rigetti remains deeply unprofitable, reporting a negative net margin of 2,189.54%; insiders sold approximately $2.57 million of stock over the past 90 days, including a substantial sale by the CEO.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report)'s stock price fell 2.4% during trading on Friday. The stock traded as low as $15.15 and last traded at $15.25. 13,603,861 shares were traded during mid-day trading, a decline of 54% from the average daily volume of 29,882,240 shares. The stock had previously closed at $15.62.

Wall Street Analysts Forecast Growth

RGTI has been the subject of a number of recent analyst reports. Benchmark started coverage on Rigetti Computing in a report on Monday, July 27th. They issued a "buy" rating and a $25.00 price objective for the company. Wedbush assumed coverage on Rigetti Computing in a research note on Monday, August 3rd. They set an "outperform" rating and a $40.00 target price on the stock. Rosenblatt Securities reaffirmed a "buy" rating and set a $40.00 target price on shares of Rigetti Computing in a research note on Friday, August 7th. Weiss Ratings lowered Rigetti Computing from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Thursday, September 17th. Finally, Zacks Research cut Rigetti Computing from a "hold" rating to a "strong sell" rating in a research note on Wednesday, August 19th. Seven equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $30.67.

Rigetti Computing Stock Performance

The business's 50 day moving average price is $16.14 and its two-hundred day moving average price is $17.51. The company has a market capitalization of $5.09 billion, a price-to-earnings ratio of -16.94 and a beta of 2.02.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.05) EPS for the quarter, meeting analysts' consensus estimates of ($0.05). The business had revenue of $5.14 million for the quarter, compared to analyst estimates of $5.09 million. Rigetti Computing had a negative net margin of 2,189.54% and a negative return on equity of 17.50%. On average, sell-side analysts expect that Rigetti Computing, Inc. will post -0.27 earnings per share for the current year.

Insider Transactions at Rigetti Computing

In other news, COO David Rivas sold 9,038 shares of the company's stock in a transaction 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 completion of the sale, the chief operating officer owned 316,907 shares in the company, valued at $5,320,868.53. This represents a 2.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Subodh Kulkarni sold 120,000 shares of the firm's stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $15.68, for a total value of $1,881,600.00. Following the transaction, the chief executive officer directly owned 140,411 shares of the company's stock, valued at $2,201,644.48. This represents a 46.08% decrease in their position. 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. Insiders sold a total of 163,689 shares of company stock worth $2,570,890 over the last 90 days. 1.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rigetti Computing

Large investors have recently made changes to their positions in the business. Clear Street Group Inc. lifted its position in shares of Rigetti Computing by 71.1% during the 4th quarter. Clear Street Group Inc. now owns 2,743,150 shares of the company's stock valued at $60,761,000 after acquiring an additional 1,140,183 shares during the last quarter. Patriot Financial Group Insurance Agency LLC grew its holdings in shares of Rigetti Computing by 105.3% in the 1st quarter. Patriot Financial Group Insurance Agency LLC now owns 123,460 shares of the company's stock worth $1,733,000 after acquiring an additional 63,331 shares during the last quarter. Granahan Investment Management LLC grew its holdings in shares of Rigetti Computing by 47.7% in the 1st quarter. Granahan Investment Management LLC now owns 326,721 shares of the company's stock worth $4,587,000 after acquiring an additional 105,494 shares during the last quarter. Encore Global Management LP acquired a new stake in shares of Rigetti Computing during the first quarter worth $1,685,000. Finally, Hsbc Holdings PLC acquired a new stake in shares of Rigetti Computing during the first quarter worth $1,019,000. Institutional investors own 35.38% of the company's stock.

Rigetti Computing Company Profile

Rigetti Computing, Inc is a quantum computing company that develops full-stack quantum computing systems based on superconducting qubit technology. The company designs and manufactures quantum processors, develops the software and control systems used to operate them, and provides access to its quantum computing capabilities through cloud-based services.

Rigetti's products and services include its quantum processing units (QPUs), quantum-classical computing infrastructure, and the Rigetti Quantum Cloud Services platform.

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