Rigetti Computing (NASDAQ:RGTI) Shares Up 3.5% - Should You Buy?

Key Points

• Rigetti shares rose 3.5% to $16.94, with about 13.5 million shares traded. The company has a $5.65 billion market capitalization and trades below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed: seven analysts rate the stock Buy, four Hold, and two Sell, resulting in an average rating of Hold and an average price target of $30.67.
• Rigetti met quarterly EPS expectations at a loss of $0.05 and slightly exceeded revenue estimates with $5.14 million in sales, but it continues to report substantial negative margins and analysts expect a full-year loss of $0.27 per share. Insiders sold $17.3 million of stock over the last quarter.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report)'s share price was up 3.5% on Tuesday . The company traded as high as $17.24 and last traded at $16.94. Approximately 13,515,403 shares traded hands during mid-day trading, a decline of 58% from the average session volume of 32,184,602 shares. The stock had previously closed at $16.37.

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. Needham & Company LLC reaffirmed a "buy" rating and set a $31.00 price target on shares of Rigetti Computing in a research report on Tuesday, May 12th. Jefferies Financial Group restated a "hold" rating and set a $18.00 target price on shares of Rigetti Computing in a report on Friday, August 7th. Benchmark initiated coverage on Rigetti Computing in a report on Monday, July 27th. They issued a "buy" rating and a $25.00 price target for the company. Wall Street Zen downgraded Rigetti Computing from a "hold" rating to a "sell" rating in a research report on Saturday, August 8th. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $40.00 target price on shares of Rigetti Computing in a research note on Friday, August 7th. Seven investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $30.67.

Rigetti Computing Trading Up 3.5%

The business's 50-day simple moving average is $17.25 and its two-hundred day simple moving average is $17.71. The company has a market capitalization of $5.65 billion, a PE ratio of -18.82 and a beta of 1.99.

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

Insider Activity at Rigetti Computing

In other news, CFO Jeffrey A. Bertelsen sold 3,860 shares of the company's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $16.89, for a total value of $65,195.40. Following the sale, the chief financial officer owned 168,067 shares in the company, valued at approximately $2,838,651.63. This represents a 2.25% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Ray O. Johnson sold 84,944 shares of the company's stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $20.55, for a total value of $1,745,599.20. Following the sale, the director owned 95,537 shares in the company, valued at $1,963,285.35. The trade was a 47.07% 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 725,149 shares of company stock worth $17,345,425 over the last quarter. Company insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On Rigetti Computing

Large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its stake in Rigetti Computing by 12.2% in the fourth quarter. Vanguard Group Inc. now owns 35,970,648 shares of the company's stock valued at $796,750,000 after acquiring an additional 3,924,171 shares during the period. State Street Corp raised its position in shares of Rigetti Computing by 12.0% during the 2nd quarter. State Street Corp now owns 8,853,006 shares of the company's stock worth $104,997,000 after purchasing an additional 946,850 shares during the period. Geode Capital Management LLC increased its position in Rigetti Computing by 2.6% in the fourth quarter. Geode Capital Management LLC now owns 7,879,325 shares of the company's stock worth $174,930,000 after buying an additional 196,891 shares during the period. California State Teachers Retirement System boosted its holdings in shares of Rigetti Computing by 1,861.8% during the second quarter. California State Teachers Retirement System now owns 7,414,688 shares of the company's stock valued at $143,252,000 after acquiring an additional 7,036,733 shares during the period. Finally, UBS Group AG grew its position in shares of Rigetti Computing by 90.9% during the third quarter. UBS Group AG now owns 3,081,174 shares of the company's stock worth $91,788,000 after acquiring an additional 1,467,483 shares during the last quarter. 35.38% of the stock is currently owned by institutional investors.

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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