Rigetti Computing, Inc. (NASDAQ:RGTI) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Broker sentiment is cautiously positive: Rigetti Computing has a consensus rating of “Moderate Buy” from 12 analysts, with an average 12-month price target of $30.60.
• The stock slipped on the day: RGTI fell 2.6% to $16.54, despite recent volatility and a wide 52-week range between $12.08 and $58.15.
• Recent results and insider activity were mixed: The company beat quarterly EPS and revenue estimates, but still posted losses; meanwhile, insiders sold shares recently, including a large sale by Director Ray O. Johnson.

Shares of Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) have been given an average recommendation of "Moderate Buy" by the twelve ratings firms that are currently covering the firm, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation and seven have given a buy recommendation to the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $30.60.

RGTI has been the subject of a number of recent analyst reports. Northland Securities initiated coverage on shares of Rigetti Computing in a research report on Monday, April 20th. They set a "market perform" rating and a $20.00 target price for the company. Weiss Ratings restated a "sell (e+)" rating on shares of Rigetti Computing in a research report on Tuesday, June 2nd. Mizuho decreased their price objective on shares of Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating on the stock in a research note on Tuesday, May 12th. Rosenblatt Securities reaffirmed a "buy" rating and set a $40.00 price objective on shares of Rigetti Computing in a report on Thursday, June 11th. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $31.00 target price on shares of Rigetti Computing in a research note on Tuesday, May 12th.

Rigetti Computing Stock Down 2.6%

NASDAQ:RGTI traded down $0.45 during trading hours on Friday, reaching $16.54. The company had a trading volume of 17,679,299 shares, compared to its average volume of 26,988,976. The stock has a 50-day moving average of $20.44 and a two-hundred day moving average of $19.33. Rigetti Computing has a one year low of $12.08 and a one year high of $58.15. The firm has a market capitalization of $5.50 billion, a PE ratio of -19.01 and a beta of 1.95.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last issued its quarterly earnings data on Monday, May 11th. The company reported ($0.04) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.05) by $0.01. Rigetti Computing had a negative return on equity of 10.40% and a negative net margin of 2,789.71%.The company had revenue of $4.40 million during the quarter, compared to analysts' expectations of $4.09 million. During the same period last year, the business earned ($0.05) earnings per share. The business's revenue was up 198.9% on a year-over-year basis. As a group, sell-side analysts expect that Rigetti Computing will post -0.22 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Ray O. Johnson sold 84,944 shares of the firm's stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $20.55, for a total transaction of $1,745,599.20. Following the completion of the sale, the director directly owned 95,537 shares of the company's stock, valued at $1,963,285.35. This trade represents a 47.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jeffrey A. Bertelsen sold 3,682 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $22.95, for a total value of $84,501.90. Following the sale, the chief financial officer owned 171,927 shares in the company, valued at $3,945,724.65. The trade was a 2.10% 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 have sold a total of 728,901 shares of company stock worth $17,546,343 in the last three months. Insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On Rigetti Computing

Several large investors have recently made changes to their positions in RGTI. Handelsbanken Fonder AB increased its position in Rigetti Computing by 21.0% in the second quarter. Handelsbanken Fonder AB now owns 122,500 shares of the company's stock worth $2,367,000 after purchasing an additional 21,300 shares during the period. Valeo Financial Advisors LLC acquired a new position in Rigetti Computing during the 2nd quarter valued at about $197,000. NewEdge Advisors LLC boosted its stake in shares of Rigetti Computing by 6.7% in the 1st quarter. NewEdge Advisors LLC now owns 65,694 shares of the company's stock valued at $922,000 after purchasing an additional 4,149 shares during the last quarter. Janus Henderson Group PLC boosted its stake in shares of Rigetti Computing by 7.3% in the 1st quarter. Janus Henderson Group PLC now owns 199,987 shares of the company's stock valued at $2,809,000 after purchasing an additional 13,666 shares during the last quarter. Finally, Encore Global Management LP acquired a new stake in shares of Rigetti Computing during the 1st quarter worth approximately $1,685,000. 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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