Rigetti Computing (NASDAQ:RGTI) Given "Buy" Rating at Needham & Company LLC

Key Points

• Needham & Company LLC reiterated a Buy rating on Rigetti Computing and set a $31 price target, implying about 51% upside from the prior close.
• Rigetti’s latest quarterly results topped expectations, with EPS of -$0.04 versus an expected -$0.05 and revenue of $4.40 million versus $4.09 million estimated. Revenue also surged 198.9% year over year.
• Despite the positive report, analyst views remain mixed: the stock has a Moderate Buy consensus with a $30.64 average target, while recent insider sales by the CFO and CTO showed some executive selling activity.

Rigetti Computing (NASDAQ:RGTI - Get Free Report)'s stock had its "buy" rating reissued by Needham & Company LLC in a research report issued to clients and investors on Tuesday,Benzinga reports. They currently have a $31.00 price objective on the stock. Needham & Company LLC's target price points to a potential upside of 51.15% from the company's previous close.

RGTI has been the topic of several other research reports. Northland Securities assumed coverage on Rigetti Computing in a report on Monday, April 20th. They set a "market perform" rating and a $20.00 target price on the stock. Rosenblatt Securities restated a "buy" rating and issued a $40.00 price objective on shares of Rigetti Computing in a research note on Thursday, March 5th. Royal Bank Of Canada lowered Rigetti Computing to a "hold" rating in a research note on Thursday, January 22nd. Wall Street Zen lowered Rigetti Computing from a "hold" rating to a "sell" rating in a research note on Sunday, April 26th. Finally, Benchmark dropped their price objective on Rigetti Computing from $35.00 to $25.00 and set a "buy" rating on the stock in a research note on Friday, March 20th. Eight research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Rigetti Computing currently has a consensus rating of "Moderate Buy" and a consensus target price of $30.64.

Rigetti Computing Stock Performance

RGTI opened at $20.51 on Tuesday. Rigetti Computing has a 52-week low of $9.85 and a 52-week high of $58.15. The firm has a market capitalization of $6.81 billion, a PE ratio of -30.16 and a beta of 1.79. The business's 50-day simple moving average is $16.47 and its 200 day simple moving average is $22.05.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last released its earnings results on Monday, May 11th. The company reported ($0.04) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.05) by $0.01. Rigetti Computing had a negative return on equity of 14.91% and a negative net margin of 3,111.92%.The business had revenue of $4.40 million for the quarter, compared to analyst estimates of $4.09 million. During the same quarter in the prior year, the company posted ($0.05) earnings per share. Rigetti Computing's revenue was up 198.9% on a year-over-year basis. On average, research analysts forecast that Rigetti Computing will post -0.16 earnings per share for the current year.

Insider Activity at Rigetti Computing

In other Rigetti Computing news, CFO Jeffrey A. Bertelsen sold 4,270 shares of the company's stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $17.52, for a total value of $74,810.40. Following the sale, the chief financial officer owned 175,609 shares in the company, valued at $3,076,669.68. This represents a 2.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CTO David Rivas sold 36,719 shares of the company's stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $17.52, for a total value of $643,316.88. Following the completion of the sale, the chief technology officer owned 651,914 shares in the company, valued at $11,421,533.28. This represents a 5.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Rigetti Computing

A number of large investors have recently made changes to their positions in the company. Rothschild Investment LLC increased its stake in shares of Rigetti Computing by 26.1% during the third quarter. Rothschild Investment LLC now owns 1,665 shares of the company's stock worth $50,000 after purchasing an additional 345 shares during the period. Prospera Financial Services Inc increased its stake in shares of Rigetti Computing by 1.0% during the third quarter. Prospera Financial Services Inc now owns 41,789 shares of the company's stock worth $1,245,000 after purchasing an additional 419 shares during the period. Kestra Private Wealth Services LLC increased its stake in shares of Rigetti Computing by 1.4% during the fourth quarter. Kestra Private Wealth Services LLC now owns 37,534 shares of the company's stock worth $831,000 after purchasing an additional 535 shares during the period. MAI Capital Management increased its stake in shares of Rigetti Computing by 17.7% during the third quarter. MAI Capital Management now owns 3,763 shares of the company's stock worth $112,000 after purchasing an additional 566 shares during the period. Finally, Global Retirement Partners LLC increased its stake in shares of 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 purchasing an additional 615 shares during the period. Institutional investors own 35.38% of the company's stock.

More Rigetti Computing News

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

• Positive Sentiment: Rigetti reported Q1 EPS of -$0.04, beating expectations for a $0.05 loss, while revenue of $4.40 million topped estimates of $4.09 million; revenue also jumped sharply year over year. MarketBeat earnings report
• Positive Sentiment: The company highlighted progress on product execution, including the launch of its 108-qubit system and customer adoption, which supports the long-term growth story for quantum computing. Earnings call transcript
• Neutral Sentiment: Unusual options activity showed a surge in call buying, suggesting traders were positioning for a larger move around earnings. MarketBeat options activity
• Negative Sentiment: Despite beating estimates, the stock moved lower as investors reacted to the company’s still-large losses and lack of near-term profitability, underscoring concern that execution gains may take time to translate into earnings. Seeking Alpha market reaction
• Negative Sentiment: Coverage around Rigetti and its quantum peers emphasized “more innovation and less profit,” reinforcing investor caution about valuation versus fundamentals in the sector. Barron's quantum earnings article

About Rigetti Computing

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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