Rigetti Computing (NASDAQ:RGTI) Rating Lowered to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Rigetti Computing to “Sell” from “Hold,” although broader analyst sentiment remains more positive, with a consensus “Moderate Buy” rating and an average price target of $30.67.
• Rigetti’s latest results matched expectations, with a quarterly loss of $0.05 per share and revenue of $5.14 million versus a $5.09 million forecast. Analysts expect a full-year loss of approximately $0.22 per share, while the company continues to report negative profitability metrics.
• Insiders sold 728,901 shares worth $17.5 million over the past 90 days. Institutional investors own 35.38% of Rigetti, and the stock recently traded at $17.94, well below its 12-month high of $58.15.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Saturday.

A number of other research firms also recently commented on RGTI. Northland Securities initiated coverage on Rigetti Computing in a research report on Monday, April 20th. They set a "market perform" rating and a $20.00 target price on the stock. Needham & Company LLC restated a "buy" rating and issued a $31.00 price target on shares of Rigetti Computing in a research report on Tuesday, May 12th. Benchmark initiated coverage on Rigetti Computing in a research note on Monday, July 27th. They set a "buy" rating and a $25.00 price target for the company. 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 report on Tuesday, May 12th. Finally, Wedbush assumed coverage on shares of Rigetti Computing in a research note on Monday, August 3rd. They issued an "outperform" rating and a $40.00 price objective on the stock. Seven investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $30.67.

Rigetti Computing Trading Up 8.5%

RGTI stock opened at $17.94 on Friday. The firm has a 50 day moving average of $18.28 and a 200-day moving average of $18.06. The company has a market cap of $5.96 billion, a price-to-earnings ratio of -19.93 and a beta of 1.99. Rigetti Computing has a 12-month low of $12.53 and a 12-month high of $58.15.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported ($0.05) earnings per share for the quarter, hitting analysts' consensus estimates of ($0.05). Rigetti Computing had a negative return on equity of 17.82% and a negative net margin of 2,189.54%.The business had revenue of $5.14 million for the quarter, compared to analysts' expectations of $5.09 million. Sell-side analysts forecast that Rigetti Computing will post -0.22 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Jeffrey A. Bertelsen sold 3,682 shares of the company's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $22.95, for a total transaction of $84,501.90. Following the transaction, the chief financial officer owned 171,927 shares of the company's stock, valued at approximately $3,945,724.65. This represents a 2.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Ray O. Johnson sold 122,188 shares of the company's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $21.30, for a total transaction of $2,602,604.40. Following the transaction, the director directly owned 171,273 shares in the company, valued at $3,648,114.90. The trade was a 41.64% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 728,901 shares of company stock valued at $17,546,343 over the last 90 days. Insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On Rigetti Computing

Several hedge funds have recently made changes to their positions in RGTI. Clear Street Group Inc. lifted its holdings in shares of Rigetti Computing by 71.1% during the 4th quarter. Clear Street Group Inc. now owns 2,743,150 shares of the company's stock worth $60,761,000 after acquiring an additional 1,140,183 shares during the period. Patriot Financial Group Insurance Agency LLC grew its holdings in Rigetti Computing by 105.3% in the first quarter. Patriot Financial Group Insurance Agency LLC now owns 123,460 shares of the company's stock valued at $1,733,000 after purchasing an additional 63,331 shares during the period. Intech Investment Management LLC grew its holdings in Rigetti Computing by 66.3% in the fourth quarter. Intech Investment Management LLC now owns 120,260 shares of the company's stock valued at $2,664,000 after purchasing an additional 47,935 shares during the period. Spear Advisors LLC acquired a new position in Rigetti Computing during the fourth quarter worth approximately $2,062,000. Finally, Eurizon Capital SGR S.p.A. acquired a new position in Rigetti Computing during the fourth quarter worth approximately $4,937,000. Institutional investors and hedge funds own 35.38% of the company's stock.

Key Headlines Impacting Rigetti Computing

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

• Positive Sentiment: Commercial momentum is improving. Second-quarter revenue rose 185.3% year over year to approximately $5.14 million, slightly exceeding consensus expectations. Wedbush said shipments of Rigetti’s Novera quantum systems are driving a more commercial revenue mix, while other coverage highlighted major quantum-computing orders. Rigetti Computing Q2 Shows Commercial Mix Inflection Rigetti Stock Rises as Major Quantum Orders Fuel Growth
• Positive Sentiment: Analyst support added to the bullish case. Rosenblatt Securities reaffirmed its “buy” rating and maintained a $40 price target, implying substantial upside from the stock’s recent level. Broader investor interest in quantum-computing stocks is also being supported by expectations for progress toward a potential “quantum advantage” milestone in 2026. Rosenblatt Rating Update Quantum Computing Stocks With Analyst Upside
• Positive Sentiment: Rigetti reported technology and strategic progress. The company cited improving quantum performance, continued development of its technology roadmap, partnerships including Hewlett Packard Enterprise, and potential U.S. government research support of up to $100 million. It ended June with approximately $541.3 million in cash and no debt, providing financial flexibility. Rigetti Computing Reports Second Quarter Results

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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