Rigetti Computing (NASDAQ:RGTI) Sees Strong Trading Volume - Here's Why

Key Points

• Rigetti Computing shares surged on heavy volume, with nearly 48.6 million shares traded, about 57% above the prior session. The stock jumped from $22.04 to $25.65 as investors piled into the name.
• Major catalysts are boosting sentiment, including a letter of intent with the U.S. Department of Commerce for up to $100 million in funding over three years to support quantum-computing R&D. Broader optimism in the quantum sector is also helping lift Rigetti and its peers.
• Analysts remain cautiously positive despite risks, with a consensus “Moderate Buy” rating and a $29.18 price target. However, some commentary highlights concerns about dilution from a shelf registration and widening losses, even as the company’s latest quarterly revenue grew 198.9% year over year.

Shares of Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) saw unusually-strong trading volume on Friday . Approximately 48,643,149 shares were traded during trading, an increase of 57% from the previous session's volume of 30,974,725 shares.The stock last traded at $25.6540 and had previously closed at $22.04.

Key Stories Impacting Rigetti Computing

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

• Positive Sentiment: Rigetti signed a letter of intent with the U.S. Department of Commerce for up to $100 million in funding over three years to accelerate superconducting quantum-computing R&D, reinforcing government support and strengthening the company’s growth narrative. Article Title
• Positive Sentiment: The broader quantum-computing group is rallying after reports of a large U.S. funding push, which is lifting sentiment across the sector and helping Rigetti break through key technical levels. Article Title
• Neutral Sentiment: Analysts and market commentary say the stock is approaching a key resistance zone after the recent quantum rally, suggesting traders are watching for whether momentum can continue. Article Title
• Negative Sentiment: Some coverage is focusing on risks tied to a shelf registration and widening Q1 losses, which could raise dilution and profitability concerns for investors. Article Title

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on RGTI shares. Benchmark reduced their price objective on Rigetti Computing from $35.00 to $25.00 and set a "buy" rating on the stock in a research report on Friday, March 20th. Royal Bank Of Canada lowered Rigetti Computing to a "hold" rating in a research report on Thursday, January 22nd. Needham & Company LLC restated a "buy" rating and set a $31.00 price objective on shares of Rigetti Computing in a research report on Tuesday, May 12th. Rosenblatt Securities restated a "buy" rating and set a $40.00 price objective on shares of Rigetti Computing in a research report on Thursday, March 5th. Finally, B. Riley Financial upgraded Rigetti Computing from a "neutral" rating to a "buy" rating and set a $35.00 price objective on the stock in a research report on Thursday, January 22nd. Eight investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Rigetti Computing currently has a consensus rating of "Moderate Buy" and a consensus price target of $29.18.

Rigetti Computing Stock Performance

The stock has a market capitalization of $8.97 billion, a price-to-earnings ratio of -31.04 and a beta of 1.79. The company has a fifty day simple moving average of $16.63 and a 200 day simple moving average of $20.84.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last announced its earnings results on Monday, May 11th. The company reported ($0.04) EPS for the quarter, topping the consensus estimate of ($0.05) by $0.01. The firm 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 business's quarterly revenue was up 198.9% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.05) EPS. As a group, equities analysts predict that Rigetti Computing, Inc. will post -0.19 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, 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 completion of the transaction, the chief financial officer owned 175,609 shares of the company's stock, valued at $3,076,669.68. This trade represents a 2.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CTO David Rivas sold 36,719 shares of Rigetti Computing stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $17.52, for a total transaction of $643,316.88. Following the transaction, the chief technology officer directly owned 651,914 shares of the company's stock, 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 company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in RGTI. Vanguard Group Inc. lifted its stake in shares of 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 purchasing an additional 9,228,888 shares during the period. Victory Capital Management Inc. lifted its stake in shares of 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 purchasing an additional 2,422,873 shares during the period. Ameriprise Financial Inc. acquired a new position in shares of Rigetti Computing in the 2nd quarter valued at about $21,887,000. Norges Bank acquired a new position in shares of Rigetti Computing in the 4th quarter valued at about $38,889,000. Finally, Clear Street Group Inc. acquired a new position in shares of Rigetti Computing in the 3rd quarter valued at about $47,752,000. 35.38% of the stock is owned by institutional investors and hedge funds.

Rigetti Computing Company Profile

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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