Rigetti Computing (NASDAQ:RGTI) Stock Price Up 3.1% - Should You Buy?

Key Points

• RGTI rose 3.1% to $16.50, largely tracking a broader rebound in quantum-computing stocks after positive developments from IonQ and NVIDIA rather than a Rigetti-specific announcement.
• Significant risks remain: Rigetti is a small, cash-burning company with substantial losses, high volatility and potential dilution concerns; recent insider selling has also weighed on sentiment.
• Analyst views are mixed, with a consensus rating of “Hold” and an average price target of $30.67, despite some firms maintaining bullish ratings and $40 targets.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) shot up 3.1% during mid-day trading on Thursday. The stock traded as high as $16.60 and last traded at $16.50. 18,776,705 shares changed hands during mid-day trading, a decline of 38% from the average daily volume of 30,400,762 shares. The stock had previously closed at $16.00.

Rigetti Computing News Summary

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

• Positive Sentiment: Quantum-sector rebound lifts RGTI: Rigetti shares are benefiting from renewed buying across quantum-computing stocks after IonQ reported an error-decoding breakthrough and announced progress involving its Superion system and NVIDIA’s research ecosystem. The gains appear to be primarily sector-driven rather than tied to a new Rigetti-specific announcement. IonQ Rises 4% as Post-Breakthrough Buying Continues; D-Wave Quantum Gains 3%, Rigetti Adds 2%
• Positive Sentiment: Investor interest remains elevated: Recent advances at IonQ and broader optimism about quantum-computing commercialization have encouraged speculative buying in peers including RGTI, D-Wave Quantum, and other early-stage technology companies. Here's why quantum computing stocks IonQ, RGTI, QBTS, INFQ are rising
• Neutral Sentiment: High volatility remains central to the story: RGTI has fallen roughly 49% over the past year from its prior peak and recently closed at $16.01 after declining more than the broader market. The sharp swings reflect continued uncertainty about the company’s long-term technology and commercial prospects. Rigetti Stock Is Down 49% This Year
• Negative Sentiment: Fundamental and valuation risks continue to weigh on the stock: Analysts and commentators question whether Rigetti’s share price is adequately supported by its book value, while the company remains a small, cash-burning business with significant losses. Government funding may also involve milestones, performance requirements, and potential shareholder dilution. 3 Reasons Rigetti Computing Stock Could Be a Trap, Not a Bargain
• Negative Sentiment: Competitive comparisons are unfavorable: Coverage contrasting Rigetti with Cerebras highlights Rigetti’s cash burn and limited revenue base versus a larger, faster-growing, profitable competitor. Reports of insider selling across the quantum group have also added to investor caution. Cerebras Systems vs. Rigetti Computing

Analysts Set New Price Targets

A number of brokerages have recently weighed in on RGTI. Zacks Research lowered Rigetti Computing from a "hold" rating to a "strong sell" rating in a report on Wednesday, August 19th. Weiss Ratings downgraded shares of Rigetti Computing from a "sell (d-)" rating to a "sell (e+)" rating in a report on Thursday, September 17th. Jefferies Financial Group restated a "hold" rating and set a $18.00 price objective on shares of Rigetti Computing in a research note on Friday, August 7th. Rosenblatt Securities reiterated a "buy" rating and issued a $40.00 price objective on shares of Rigetti Computing in a research note on Friday, August 7th. Finally, Wedbush began coverage on shares of Rigetti Computing in a report on Monday, August 3rd. They issued 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 issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $30.67.

Rigetti Computing Trading Up 3.1%

The firm's fifty day simple moving average is $15.97 and its two-hundred day simple moving average is $17.54. The company has a market capitalization of $5.51 billion, a price-to-earnings ratio of -18.33 and a beta of 2.00.

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, meeting the consensus estimate of ($0.05). The firm 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%. As a group, analysts forecast that Rigetti Computing, Inc. will post -0.27 EPS for the current fiscal year.

Insider Buying and Selling at Rigetti Computing

In other news, CFO Jeffrey A. Bertelsen sold 25,000 shares of the company's 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 transaction, the chief financial officer directly owned 168,067 shares of the company's stock, valued at $2,521,005. This represents a 12.95% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Andrew Bestwick sold 5,791 shares of Rigetti Computing stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $16.81, for a total value of $97,346.71. Following the transaction, the chief technology officer directly owned 1,036,121 shares of the company's stock, valued at $17,417,194.01. This trade represents a 0.56% 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. In the last three months, insiders have sold 163,689 shares of company stock valued at $2,570,890. 1.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Rigetti Computing

Hedge funds and other institutional investors have recently modified their holdings of the company. Sequoia Financial Advisors LLC boosted its stake in Rigetti Computing by 5.2% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 65,906 shares of the company's stock worth $1,273,000 after buying an additional 3,283 shares during the last quarter. Tidal Investments LLC purchased a new stake in Rigetti Computing during the second quarter valued at about $365,000. NewEdge Advisors LLC raised its holdings in Rigetti Computing by 16.8% in the second quarter. NewEdge Advisors LLC now owns 76,752 shares of the company's stock valued at $1,483,000 after buying an additional 11,058 shares during the period. IFP Advisors Inc raised its stake in shares of Rigetti Computing by 85.5% in the 2nd quarter. IFP Advisors Inc now owns 12,784 shares of the company's stock valued at $247,000 after acquiring an additional 5,892 shares during the period. Finally, Allworth Financial LP boosted its position in shares of Rigetti Computing by 116.0% in the second quarter. Allworth Financial LP now owns 9,987 shares of the company's stock worth $193,000 after buying an additional 5,363 shares during the period. 35.38% of the stock is currently owned by hedge funds and other institutional investors.

About Rigetti Computing

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 needed to program and operate them, and provides access to its systems through cloud-based services.

Rigetti's offerings include its quantum processing units and integrated quantum computing systems, as well as the Rigetti Quantum Cloud Services platform. Through cloud access and partnerships, organizations can experiment with quantum algorithms and explore potential applications in areas such as optimization, simulation, machine learning and other computationally intensive fields.

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