Rigetti Computing (NASDAQ:RGTI) Raised to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Rigetti Computing from “sell” to “hold,” adding to a mixed but generally optimistic analyst backdrop. The stock still has a consensus rating of “Moderate Buy” and an average target price of $29.18.
• Rigetti shares were up 19.9% and opened at $26.42, near the middle of their 12-month range. The company also reported a smaller-than-expected quarterly loss and revenue of $4.40 million, which beat analyst estimates and jumped 198.9% from a year earlier.
• Investor sentiment has been boosted by a letter of intent with the U.S. Department of Commerce for up to $100 million in CHIPS Act funding, but the deal could involve an equity stake and potential dilution. Recent insider share sales and ongoing valuation/execution concerns remain a cautionary note.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

Several other equities research analysts have also recently issued reports on RGTI. Mizuho dropped 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. TD Cowen cut shares of Rigetti Computing from a "buy" rating to a "hold" rating in a report on Thursday, February 12th. Benchmark dropped their target price on shares of Rigetti Computing from $35.00 to $25.00 and set a "buy" rating on the stock in a report on Friday, March 20th. Rosenblatt Securities restated a "buy" rating and issued a $40.00 target price on shares of Rigetti Computing in a report on Thursday, March 5th. Finally, Northland Securities started coverage on shares of Rigetti Computing in a report on Monday, April 20th. They issued a "market perform" rating and a $20.00 target price on the stock. Eight research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $29.18.

Rigetti Computing Trading Up 19.9%

Shares of RGTI stock opened at $26.42 on Friday. Rigetti Computing has a 12-month low of $10.30 and a 12-month high of $58.15. The firm's 50 day moving average is $16.82 and its 200 day moving average is $20.88. The stock has a market capitalization of $8.78 billion, a P/E ratio of -30.37 and a beta of 1.79.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last issued 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 net margin of 2,789.71% and a negative return on equity of 10.40%. The company had revenue of $4.40 million for the quarter, compared to analysts' expectations of $4.09 million. During the same quarter last year, the company posted ($0.05) earnings per share. The firm's quarterly revenue was up 198.9% on a year-over-year basis. As a group, equities analysts predict that Rigetti Computing will post -0.19 earnings per share for the current year.

Insiders Place Their Bets

In related news, CTO David Rivas sold 36,719 shares of Rigetti Computing stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $17.52, for a total transaction of $643,316.88. Following the transaction, the chief technology officer owned 651,914 shares in the company, valued at approximately $11,421,533.28. The trade was a 5.33% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Jeffrey A. Bertelsen sold 4,270 shares of Rigetti Computing stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $17.52, for a total transaction of $74,810.40. Following the transaction, the chief financial officer owned 175,609 shares in the company, valued at approximately $3,076,669.68. This trade represents a 2.37% decrease in their position. The SEC filing for this sale provides additional information. 1.60% of the stock is currently owned by insiders.

Institutional Trading of Rigetti Computing

A number of institutional investors and hedge funds have recently bought and sold shares of RGTI. Vanguard Group Inc. increased its holdings in Rigetti Computing by 40.4% in the 3rd quarter. Vanguard Group Inc. now owns 32,046,477 shares of the company's stock valued at $954,665,000 after acquiring an additional 9,228,888 shares during the last quarter. Victory Capital Management Inc. increased its holdings in Rigetti Computing by 1,632.5% in the 4th quarter. Victory Capital Management Inc. now owns 2,571,289 shares of the company's stock valued at $56,954,000 after acquiring an additional 2,422,873 shares during the last quarter. Ameriprise Financial Inc. bought a new stake in Rigetti Computing in the 2nd quarter valued at $21,887,000. Norges Bank bought a new stake in Rigetti Computing in the 4th quarter valued at $38,889,000. Finally, Clear Street Group Inc. bought a new stake in Rigetti Computing in the 3rd quarter valued at $47,752,000. 35.38% of the stock is currently owned by institutional investors.

Key Headlines Impacting Rigetti Computing

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

• Positive Sentiment: Rigetti announced a letter of intent with the U.S. Department of Commerce for up to $100 million in CHIPS Act funding over three years to accelerate superconducting quantum R&D, giving the company a strong credibility boost and a potential source of non-dilutive-like strategic support for development. Rigetti Signs Letter of Intent with U.S. Government for Quantum Computing Research
• Positive Sentiment: The broader quantum-computing group is surging after Washington’s reported $2 billion push for the sector, lifting Rigetti along with peers like IonQ, D-Wave and Quantum Computing Inc. as investors rotate into the theme. Quantum rally sends Rigetti stock toward key resistance zone
• Positive Sentiment: Media coverage highlights Rigetti as a beneficiary of the government-backed quantum race, which is amplifying momentum and drawing in speculative buyers. Ca$htag$: RGTI Surges as Bulls Pile into Quantum Stocks
• Neutral Sentiment: Some commentary notes Rigetti still faces execution and valuation questions, and a separate headline pointed to concerns about a shelf registration and wider Q1 losses, underscoring that the rally is being driven more by catalysts and sentiment than by near-term fundamentals. Rigetti Computing (RGTI) Is Down 8.3% After Shelf Registration And Q1 Losses Widening Concerns
• Negative Sentiment: The Commerce Department deal contemplates an equity stake for the government, which could dilute existing shareholders if finalized. Rigetti Signs Letter of Intent with U.S. Government for Quantum Computing Research

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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