Rigetti Computing (NASDAQ:RGTI) Posts Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Quarterly EPS beat: Rigetti reported ($0.03) EPS vs. analysts' ($0.05) estimate — a $0.02 beat — but remains deeply unprofitable with a net margin of -2,134.92% and ROE of -29.05%.
• Stock and analyst context: Shares fell about 2% to $33.08 (market cap $10.72B) after the report; the consensus rating is a "Moderate Buy" with an average target of $29.29, and the company shows a negative P/E of -43.53.
• Insider activity and institutional interest: Insiders have sold 454,204 shares (~$10.3M) in the past 90 days, while several institutions have increased positions and hedge funds/institutions now own 35.38% of the stock.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) issued its quarterly earnings data on Monday. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.05) by $0.02, Zacks reports. Rigetti Computing had a negative net margin of 2,134.92% and a negative return on equity of 29.05%.

Rigetti Computing Stock Down 2.0%

Rigetti Computing stock traded down $0.69 during midday trading on Monday, hitting $33.08. 38,496,178 shares of the stock were exchanged, compared to its average volume of 74,284,023. Rigetti Computing has a 52-week low of $1.25 and a 52-week high of $58.15. The business's 50-day moving average price is $33.14 and its 200-day moving average price is $20.16. The stock has a market capitalization of $10.72 billion, a price-to-earnings ratio of -43.53 and a beta of 1.64.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the stock. Williams Trading set a $50.00 price target on shares of Rigetti Computing in a research note on Tuesday, October 7th. B. Riley restated a "neutral" rating and issued a $42.00 target price (up previously from $35.00) on shares of Rigetti Computing in a report on Monday, November 3rd. Benchmark increased their price target on Rigetti Computing from $20.00 to $50.00 and gave the stock a "buy" rating in a report on Tuesday, October 7th. Alliance Global Partners restated a "buy" rating on shares of Rigetti Computing in a research note on Wednesday, July 16th. Finally, Needham & Company LLC lifted their price target on shares of Rigetti Computing from $15.00 to $18.00 and gave the company a "buy" rating in a research report on Monday, August 4th. Five equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $29.29.

Insider Activity

In other news, Director Ray O. Johnson sold 126,295 shares of the business's stock in a transaction that occurred on Friday, September 12th. The stock was sold at an average price of $20.00, for a total value of $2,525,900.00. Following the transaction, the director owned 293,461 shares in the company, valued at $5,869,220. The trade was a 30.09% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CTO David Rivas sold 44,355 shares of the company's stock in a transaction that occurred on Wednesday, August 20th. The shares were sold at an average price of $14.85, for a total value of $658,671.75. Following the completion of the transaction, the chief technology officer directly owned 730,568 shares of the company's stock, valued at approximately $10,848,934.80. This represents a 5.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 454,204 shares of company stock worth $10,300,876.

Institutional Investors Weigh In On Rigetti Computing

Large investors have recently made changes to their positions in the business. NewEdge Advisors LLC raised its position in Rigetti Computing by 133.9% in the second quarter. NewEdge Advisors LLC now owns 59,865 shares of the company's stock worth $710,000 after acquiring an additional 34,273 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Rigetti Computing by 25.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 112,409 shares of the company's stock worth $890,000 after acquiring an additional 22,770 shares in the last quarter. First Trust Advisors LP lifted its holdings in Rigetti Computing by 393.6% during the 2nd quarter. First Trust Advisors LP now owns 95,701 shares of the company's stock worth $1,135,000 after purchasing an additional 76,312 shares in the last quarter. Royal Bank of Canada boosted its position in shares of Rigetti Computing by 106.2% in the first quarter. Royal Bank of Canada now owns 220,701 shares of the company's stock valued at $1,748,000 after acquiring an additional 113,644 shares during the period. Finally, FORA Capital LLC boosted its holdings in Rigetti Computing by 30.2% in the 2nd quarter. FORA Capital LLC now owns 151,419 shares of the company's stock valued at $1,796,000 after purchasing an additional 35,080 shares during the period. 35.38% of the stock is owned by hedge funds and other institutional investors.

Rigetti Computing Company Profile

Rigetti Computing, Inc, through its subsidiaries, builds quantum computers and the superconducting quantum processors. The company offers cloud in a form of quantum processing unit, such as 9-qubit chip and Ankaa-2 system under the Novera brand name; and sells access to its quantum computers through quantum computing as a service.

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