Rigetti Computing (NASDAQ:RGTI) Stock Price Up 13.6% - Time to Buy?

Key Points

• Rigetti shares rose 13.6% to $11.185 in Friday’s midday trading, while volume was 78% below its average.
• Investors are watching for commercial progress, including Novera orders, system deliveries and quantum-performance milestones; a reported finance forecasting use case may also point to potential applications.
• Risks include high valuation, weak margins and cash flow, and lumpy revenue. Analysts’ consensus is Hold, with an average price target of $29.56.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) shares were up 13.6% during mid-day trading on Friday. The company traded as high as $10.98 and last traded at $11.1850. Approximately 6,101,039 shares traded hands during mid-day trading, a decline of 78% from the average daily volume of 28,019,080 shares. The stock had previously closed at $9.85.

Trending Headlines about Rigetti Computing

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

• Neutral Sentiment: A preview of Rigetti’s Q3 results highlights Novera orders, pending system deliveries and quantum-performance milestones as indicators investors will watch for commercial progress. These are potential growth drivers, but the article does not report completed deliveries or realized revenue. Rigetti Q3 Earnings: Will Commercial Progress Translate Into Growth?
• Neutral Sentiment: A report describes a Rigetti-powered quantum forecasting breakthrough in finance, suggesting a possible real-world use case; the available details do not indicate its commercial scale or financial impact. Rigetti Computing Powered a Quantum Forecasting Breakthrough in Finance
• Negative Sentiment: A Seeking Alpha analysis downgraded RGTI to Sell, arguing that valuation risk outweighs upside. It cites very high sales multiples, weak gross margins and cash flow, and revenue that can be lumpy because it depends on system deliveries; in its view, investors are already pricing in substantial future growth. Rigetti: The Stock Has Fallen, But Expectations Haven't (Rating Downgrade)
• Negative Sentiment: Options-market coverage calls RGTI a potential target for bears, citing a historically bearish signal associated with past pullbacks. Separately, a valuation article questions whether the share price is supported by the company’s book value. Signal Says This Quantum Name Is a Prime Play for Bears Rigetti Computing Stock Trades at a Premium to Book Value

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Wall Street Zen lowered shares of Rigetti Computing from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th. Wedbush began coverage on Rigetti Computing in a report on Monday, August 3rd. They set an "outperform" rating and a $40.00 price target on the stock. Rosenblatt Securities reissued a "buy" rating and set a $40.00 price objective on shares of Rigetti Computing in a research report on Friday, August 7th. Weiss Ratings raised Rigetti Computing from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, October 21st. Finally, Benchmark initiated coverage on shares of Rigetti Computing in a research note on Monday, July 27th. They issued a "buy" rating and a $25.00 price objective on the stock. Seven analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Rigetti Computing currently has a consensus rating of "Hold" and an average price target of $29.56.

Rigetti Computing Trading Up 15.7%

The firm has a market capitalization of $3.80 billion, a price-to-earnings ratio of -12.53 and a beta of 2.15. The firm has a fifty day moving average price of $14.06 and a 200 day moving average price of $16.96.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported ($0.05) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.05). 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 $5.14 million during the quarter, compared to analysts' expectations of $5.09 million. As a group, equities analysts predict that Rigetti Computing, Inc. will post -0.27 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Jeffrey Bertelsen sold 25,000 shares of the business's stock in a transaction that occurred 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 completion of the transaction, the chief financial officer owned 168,067 shares in the company, valued at approximately $2,521,005. The trade was a 12.95% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO David Rivas sold 9,038 shares of Rigetti Computing stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $16.79, for a total value of $151,748.02. Following the transaction, the chief operating officer owned 316,907 shares in the company, valued at $5,320,868.53. This trade represents a 2.77% decrease in their position. 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 valued at $2,570,890 in the last three months. 1.60% of the stock is currently owned by company insiders.

Institutional Trading of Rigetti Computing

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Wealth Management Partners LLC increased its stake in Rigetti Computing by 1.7% in the third quarter. Wealth Management Partners LLC now owns 52,598 shares of the company's stock valued at $828,000 after acquiring an additional 869 shares during the last quarter. Arizona State Retirement System lifted its stake in Rigetti Computing by 1.1% during the second quarter. Arizona State Retirement System now owns 91,650 shares of the company's stock worth $1,771,000 after purchasing an additional 1,000 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in Rigetti Computing by 31.8% during the first quarter. EverSource Wealth Advisors LLC now owns 4,651 shares of the company's stock worth $65,000 after purchasing an additional 1,121 shares during the last quarter. Prime Capital Investment Advisors LLC lifted its stake in Rigetti Computing by 10.7% during the third quarter. Prime Capital Investment Advisors LLC now owns 11,654 shares of the company's stock worth $183,000 after purchasing an additional 1,128 shares during the last quarter. Finally, bLong Financial LLC boosted its holdings in shares of Rigetti Computing by 9.7% in the 3rd quarter. bLong Financial LLC now owns 14,150 shares of the company's stock worth $223,000 after purchasing an additional 1,250 shares in the last quarter. 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 quantum processors. Its technology is designed to support research and commercial applications that may benefit from quantum computing, including optimization, simulation, machine learning and complex data analysis.

The company develops quantum processing units, quantum computers and related control systems, software and cloud services. Its Rigetti Quantum Cloud Services platform provides access to Rigetti quantum systems through the cloud, while its hardware offerings are intended for use by enterprises, government organizations, academic institutions and other research customers.

Founded in 2013 by Chad Rigetti, the company is headquartered in Berkeley, California, and operates its own quantum chip fabrication facility, known as Fab-1.

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