Rigetti Computing (NASDAQ:RGTI) Shares Gap Up - Here's What Happened

Key Points

• Rigetti shares jumped about 6%, opening at $16.39 versus a prior close of $15.20, after the company secured a definitive $100 million CHIPS Act award from the U.S. Department of Commerce.
• The funding will support research and development aimed at scaling Rigetti’s superconducting quantum computers. The broader $300 million initiative gives the government minority equity stakes in Rigetti, D-Wave Quantum and Quantinuum, though potential shareholder dilution remains a risk.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and a $30.67 target price. Rigetti continues to report steep losses, while its CFO recently sold 25,000 shares under a pre-arranged trading plan.

Shares of Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) gapped up before the market opened on Tuesday . The stock had previously closed at $15.20, but opened at $16.39. Rigetti Computing shares last traded at $16.4080, with a volume of 15,232,679 shares.

Key Stories Impacting Rigetti Computing

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

• Positive Sentiment: Rigetti signed a definitive agreement with the U.S. Department of Commerce for a $100 million CHIPS Act award. The funding is intended to accelerate research and development focused on scaling superconducting quantum computers and addressing key technical challenges. Rigetti Signs Definitive Agreement for $100M with U.S. Government
• Positive Sentiment: The award is part of a combined $300 million CHIPS Act initiative for Rigetti, D-Wave Quantum and Quantinuum. The U.S. government will receive minority, non-controlling equity stakes, providing Rigetti with substantial capital and an important government endorsement of quantum computing as a strategic technology. U.S. Gets Minority Stakes in D-Wave, Rigetti, Quantinuum
• Neutral Sentiment: The government investment could strengthen Rigetti’s balance sheet and extend its ability to fund development, but the immediate effect on revenue and profitability is uncertain. The equity component may also dilute existing shareholders, depending on the final transaction terms. Quantum Stocks Rally as Commerce Department Takes Equity Stakes
• Negative Sentiment: Rigetti’s CFO sold 25,000 shares for approximately $375,000 on September 3, representing 15% of the CFO’s direct holdings. The sale may raise some concern about insider confidence, although it is small relative to the company’s roughly $5.55 billion market capitalization. Rigetti Computing CFO Sells 25,000 Shares

Wall Street Analyst Weigh In

RGTI has been the topic of a number of research analyst reports. Mizuho reduced their target price on Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating on the stock in a report on Tuesday, May 12th. Jefferies Financial Group reaffirmed a "hold" rating and issued a $18.00 price objective on shares of Rigetti Computing in a research note on Friday, August 7th. Rosenblatt Securities reissued a "buy" rating and set a $40.00 target price on shares of Rigetti Computing in a research report on Friday, August 7th. Weiss Ratings upgraded shares of Rigetti Computing from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, September 2nd. Finally, Wedbush initiated coverage on shares of Rigetti Computing in a research report on Monday, August 3rd. They set an "outperform" rating and a $40.00 price target on the stock. Seven research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $30.67.

Rigetti Computing Trading Up 6.0%

The stock has a market capitalization of $5.38 billion, a price-to-earnings ratio of -17.93 and a beta of 2.00. The firm has a 50-day moving average of $16.34 and a 200 day moving average of $17.66.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported ($0.05) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.05). The company had revenue of $5.14 million during the quarter, compared to the consensus estimate of $5.09 million. Rigetti Computing had a negative net margin of 2,189.54% and a negative return on equity of 17.50%. As a group, research analysts forecast that Rigetti Computing, Inc. will post -0.27 EPS for the current year.

Insider Activity

In related news, CFO Jeffrey A. Bertelsen sold 25,000 shares of Rigetti Computing stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $15.00, for a total transaction of $375,000.00. Following the sale, the chief financial officer owned 168,067 shares of the company's stock, valued at $2,521,005. The trade was a 12.95% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO David Rivas sold 9,038 shares of the business's stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $16.79, for a total transaction of $151,748.02. Following the completion of the transaction, 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 position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 128,633 shares of company stock valued at $2,434,889 over the last ninety days. 1.60% of the stock is owned by company insiders.

Institutional Trading of Rigetti Computing

Hedge funds and other institutional investors have recently modified their holdings of the business. Danske Bank A S purchased a new position in Rigetti Computing in the third quarter valued at about $30,000. Parallel Advisors LLC increased its holdings in Rigetti Computing by 403.2% during the 3rd quarter. Parallel Advisors LLC now owns 1,087 shares of the company's stock worth $32,000 after purchasing an additional 871 shares during the last quarter. Heritage Wealth Advisors increased its holdings in Rigetti Computing by 454.3% during the 4th quarter. Heritage Wealth Advisors now owns 1,164 shares of the company's stock worth $26,000 after purchasing an additional 954 shares during the last quarter. Larson Financial Group LLC raised its position in shares of Rigetti Computing by 138.4% in the 4th quarter. Larson Financial Group LLC now owns 1,218 shares of the company's stock valued at $27,000 after purchasing an additional 707 shares in the last quarter. Finally, EFG International AG acquired a new position in shares of Rigetti Computing in the 4th quarter valued at approximately $28,000. 35.38% of the stock is owned by hedge funds and other institutional investors.

About Rigetti Computing

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.