Rigetti Computing (NASDAQ:RGTI) Trading Down 3.6% - Time to Sell?

Key Points

• Rigetti shares fell 3.6% to about $15.24 on heavy trading, while the stock remains well below its 50-day and 200-day moving averages. The decline reflects broader weakness in quantum stocks as higher rate expectations pressure speculative growth companies.
• Rigetti secured up to $100 million in CHIPS Act funding from the U.S. Department of Commerce, providing capital for superconducting quantum-computing research and potentially extending its cash runway without immediate equity dilution.
• The company remains highly speculative, with widening losses, uneven revenue and a long commercialization timeline. Analysts’ consensus rating is Hold, despite an average price target of $30.67, while recent insider share sales add another cautionary signal.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report)'s share price fell 3.6% during trading on Wednesday . The company traded as low as $15.16 and last traded at $15.24. Approximately 18,484,738 shares were traded during mid-day trading, a decline of 41% from the average session volume of 31,276,182 shares. The stock had previously closed at $15.81.

More Rigetti Computing News

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 up to $100 million under the CHIPS and Science Act. The funding will support research and development aimed at scaling its superconducting quantum-computing systems, while the government receives a minority, non-controlling equity stake. The award could extend Rigetti’s cash runway, reduce financing pressure and validate quantum computing as a strategic technology. Rigetti Signs Definitive Agreement for $100M with U.S. Government to Accelerate R&D for Superconducting Quantum Computing
• Positive Sentiment: The government investment initially lifted Rigetti and other quantum stocks, with investors viewing direct federal ownership and CHIPS Act funding as strategic support for the industry. The capital may help finance hardware development without requiring an immediately dilutive equity offering. U.S. Gets Minority Stakes in D-Wave, Rigetti, Quantinuum in $300 Million CHIPS Act Funding Deal
• Neutral Sentiment: Analyst commentary continues to identify meaningful upside if Rigetti converts government backing and industry partnerships into commercial quantum deployments. However, the company remains a speculative investment with high share-price volatility and a long development timeline.
• Negative Sentiment: Rigetti still faces widening losses, uneven or “lumpy” revenue and risks in executing its technology roadmap. These concerns limit the immediate financial benefit of the award and make valuation sensitive to interest rates and investor appetite for unprofitable growth companies. Rising Losses Weigh on Rigetti's Outlook: Sell or Hold RGTI Stock Now?
• Negative Sentiment: Quantum stocks broadly pulled back as rate-hike odds increased, making future cash flows from early-stage technology companies less attractive. A recent sale of 25,000 Rigetti shares by the company’s CFO also adds a modest insider-selling caution signal. Quantum Stocks Fall as Rate-Hike Odds Climb

Analyst Upgrades and Downgrades

RGTI has been the topic of several research reports. Zacks Research downgraded shares of Rigetti Computing from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 19th. Mizuho dropped their target price on shares of Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating for the company in a research note on Tuesday, May 12th. Weiss Ratings upgraded shares of Rigetti Computing from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, September 2nd. Benchmark began coverage on shares of Rigetti Computing in a report on Monday, July 27th. They issued a "buy" rating and a $25.00 price target for the company. Finally, Needham & Company LLC restated a "buy" rating and issued a $31.00 price objective on shares of Rigetti Computing in a research report on Tuesday, May 12th. Seven research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $30.67.

Rigetti Computing Trading Down 3.6%

The business's fifty day simple moving average is $16.27 and its 200 day simple moving average is $17.66. The stock has a market cap of $5.09 billion, a price-to-earnings ratio of -16.93 and a beta of 2.00.

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

Insiders Place Their Bets

In other news, CFO Jeffrey Bertelsen sold 25,000 shares of the firm's stock in a transaction dated Thursday, September 3rd. The stock was 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. This trade represents a 12.95% decrease in their ownership of the stock. 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, COO David Rivas sold 9,038 shares of the stock in a transaction that occurred 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 directly owned 316,907 shares of the company's stock, valued at approximately $5,320,868.53. The trade was a 2.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 128,633 shares of company stock valued at $2,434,889 over the last ninety days. 1.60% of the stock is owned by insiders.

Institutional Trading of Rigetti Computing

Several hedge funds and other institutional investors have recently modified their holdings of the company. Sequoia Financial Advisors LLC boosted its position in shares of Rigetti Computing by 5.2% during the second 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 period. Tidal Investments LLC acquired a new stake in Rigetti Computing in the 2nd quarter valued at approximately $365,000. NewEdge Advisors LLC raised its position in Rigetti Computing by 16.8% in the 2nd 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 last quarter. IFP Advisors Inc lifted its stake in 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 in the last quarter. Finally, Allworth Financial LP lifted its stake in Rigetti Computing by 116.0% in the 2nd quarter. Allworth Financial LP now owns 9,987 shares of the company's stock valued at $193,000 after acquiring an additional 5,363 shares in the last quarter. Institutional investors and hedge funds own 35.38% of the company's stock.

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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