Rigetti Computing (NASDAQ:RGTI) Receives "Outperform" Rating from Wedbush

Key Points

• Wedbush reiterated an “Outperform” rating on Rigetti Computing and maintained a $40 price target, implying approximately 156% upside from the stock’s $15.63 opening price.
• Analyst sentiment is broadly positive: seven analysts rate the stock a Buy, four Hold, and one Sell, resulting in a “Moderate Buy” consensus and an average price target of $32.
• Rigetti exceeded quarterly expectations with adjusted EPS of -$0.04 versus -$0.05 expected and revenue of $4.40 million, up 198.9% year over year; however, insiders sold 728,901 shares worth about $17.5 million over the past 90 days.

Rigetti Computing (NASDAQ:RGTI - Get Free Report)'s stock had its "outperform" rating restated by equities research analysts at Wedbush in a research note issued on Monday,Benzinga reports. They currently have a $40.00 price objective on the stock. Wedbush's price target indicates a potential upside of 155.84% from the stock's current price.

Several other equities research analysts have also recently commented on the stock. Weiss Ratings upgraded shares of Rigetti Computing from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, July 21st. Mizuho reduced their price objective on shares of Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating for the company in a research report on Tuesday, May 12th. Northland Securities started coverage on shares of Rigetti Computing in a research note on Monday, April 20th. They issued a "market perform" rating and a $20.00 price objective on the stock. Benchmark initiated coverage on shares of Rigetti Computing in a research note on Monday, July 27th. They issued a "buy" rating and a $25.00 price objective on the stock. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $31.00 target price on shares of Rigetti Computing in a report on Tuesday, May 12th. Seven equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $32.00.

Rigetti Computing Stock Performance

Shares of NASDAQ RGTI opened at $15.63 on Monday. Rigetti Computing has a 1 year low of $12.53 and a 1 year high of $58.15. The firm has a market cap of $5.20 billion, a P/E ratio of -17.42 and a beta of 1.99. The stock has a fifty day moving average price of $19.16 and a two-hundred day moving average price of $18.30.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last posted its quarterly earnings data on Monday, May 11th. The company reported ($0.04) EPS for the quarter, topping analysts' consensus estimates of ($0.05) by $0.01. The company had revenue of $4.40 million for the quarter, compared to the consensus estimate of $4.09 million. Rigetti Computing had a negative return on equity of 10.40% and a negative net margin of 2,789.71%.The company's quarterly revenue was up 198.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.05) EPS. On average, research analysts predict that Rigetti Computing will post -0.22 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Jeffrey A. Bertelsen sold 3,682 shares of the business'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 directly owned 171,927 shares of the company's stock, valued at approximately $3,945,724.65. The trade was a 2.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO David Rivas sold 499,328 shares of the business's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $25.40, for a total transaction of $12,682,931.20. Following the completion of the sale, the chief technology officer directly owned 325,945 shares of the company's stock, valued at $8,279,003. This represents a 60.50% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 728,901 shares of company stock valued at $17,546,343. Corporate insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On Rigetti Computing

A number of large investors have recently bought and sold shares of the business. Handelsbanken Fonder AB raised its holdings in Rigetti Computing by 21.0% during the second quarter. Handelsbanken Fonder AB now owns 122,500 shares of the company's stock valued at $2,367,000 after buying an additional 21,300 shares in the last quarter. Valeo Financial Advisors LLC bought a new stake in shares of Rigetti Computing during the 2nd quarter worth about $197,000. NewEdge Advisors LLC increased its holdings in shares of Rigetti Computing by 6.7% during the 1st quarter. NewEdge Advisors LLC now owns 65,694 shares of the company's stock valued at $922,000 after acquiring an additional 4,149 shares during the last quarter. Janus Henderson Group PLC increased its holdings in shares of Rigetti Computing by 7.3% during the 1st quarter. Janus Henderson Group PLC now owns 199,987 shares of the company's stock valued at $2,809,000 after acquiring an additional 13,666 shares during the last quarter. Finally, Encore Global Management LP bought a new position in shares of Rigetti Computing in the 1st quarter valued at approximately $1,685,000. 35.38% of the stock is currently owned by institutional investors.

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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