Rigetti Computing (NASDAQ:RGTI) Trading 4% Higher - Here's What Happened

Key Points

• Rigetti shares rose 4% to $15.81 amid trading volume 34% above average, following news that the company will receive $100 million in U.S. government funding to advance superconducting quantum-computing research.
• The funding is viewed as government validation and could accelerate commercialization, but the minority equity stake may dilute existing shareholders. Rigetti’s stock carries an average analyst rating of “Hold” and an average price target of $30.67.
• Rigetti remains deeply unprofitable, reporting a negative net margin of 2,189.54%, while insiders have sold 128,633 shares worth about $2.43 million over the past three months.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) shares rose 4% during mid-day trading on Tuesday . The company traded as high as $17.05 and last traded at $15.81. Approximately 41,946,791 shares traded hands during mid-day trading, an increase of 34% from the average daily volume of 31,327,480 shares. The stock had previously closed at $15.20.

More Rigetti Computing News

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

• Positive Sentiment: The federal funding provides Rigetti with substantial capital to advance its technology and potentially reduce the need for near-term private financing. The company is one of three quantum-computing firms receiving government support under a combined $300 million program. Rigetti Signs Definitive Agreement for $100M with U.S. Government
• Positive Sentiment: Investors are viewing the award as government validation of Rigetti’s strategic importance and as a potential catalyst for faster commercialization of its quantum systems. The news also lifted other quantum-computing stocks. These 3 Quantum Stocks Are on the Rise
• Neutral Sentiment: The funding involves the U.S. government taking a minority, non-controlling equity stake, meaning the capital may come with some shareholder dilution. The longer-term benefit will depend on Rigetti converting the investment into meaningful technical and commercial progress. U.S. Gets Minority Stakes in Quantum Companies
• Negative Sentiment: Rigetti’s CFO sold 25,000 shares worth approximately $375,000 on September 3, representing 15% of the CFO’s direct stake. The insider sale could raise caution about valuation and executive confidence, although it was overshadowed by the government funding announcement. Rigetti CFO Sells 25,000 Shares

Wall Street Analyst Weigh In

A number of brokerages have commented on RGTI. Jefferies Financial Group restated a "hold" rating and set a $18.00 price target on shares of Rigetti Computing in a research note 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. Needham & Company LLC reissued a "buy" rating and set a $31.00 target price on shares of Rigetti Computing in a research report on Tuesday, May 12th. Mizuho lowered their target price on shares of Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating on the stock in a report on Tuesday, May 12th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and issued a $40.00 price target on shares of Rigetti Computing in a research report on Friday, August 7th. Seven investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Rigetti Computing currently has an average rating of "Hold" and an average price target of $30.67.

Rigetti Computing Stock Up 4.0%

The business's 50-day moving average is $16.34 and its two-hundred day moving average is $17.66. The company has a market capitalization of $5.28 billion, a P/E ratio of -17.57 and a beta of 2.00.

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, hitting analysts' consensus estimates of ($0.05). The business 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%. Analysts predict that Rigetti Computing, Inc. will post -0.27 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Jeffrey Bertelsen sold 25,000 shares of the stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $15.00, for a total transaction of $375,000.00. Following the completion of the sale, the chief financial officer directly owned 168,067 shares of the company's stock, valued at approximately $2,521,005. This trade represents a 12.95% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, 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 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 sale, 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 ownership of the stock. 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 sold 128,633 shares of company stock valued at $2,434,889. Insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On Rigetti Computing

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Global Retirement Partners LLC increased its holdings in Rigetti Computing by 10.2% during the fourth quarter. Global Retirement Partners LLC now owns 6,656 shares of the company's stock worth $147,000 after buying an additional 615 shares during the last quarter. Comerica Bank boosted its stake in Rigetti Computing by 2.1% in the third quarter. Comerica Bank now owns 31,901 shares of the company's stock valued at $950,000 after acquiring an additional 653 shares during the last quarter. Main Management ETF Advisors LLC grew its position in shares of Rigetti Computing by 1.0% during the 4th quarter. Main Management ETF Advisors LLC now owns 64,206 shares of the company's stock valued at $1,422,000 after acquiring an additional 656 shares during the period. Larson Financial Group LLC grew its position in shares of Rigetti Computing by 138.4% during the 4th quarter. Larson Financial Group LLC now owns 1,218 shares of the company's stock valued at $27,000 after acquiring an additional 707 shares during the period. Finally, WealthPLAN Partners LLC increased its stake in shares of Rigetti Computing by 1.0% during the 4th quarter. WealthPLAN Partners LLC now owns 72,500 shares of the company's stock worth $1,606,000 after purchasing an additional 723 shares during the last quarter. 35.38% of the stock is owned by hedge funds and other 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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