Rigetti Computing (NASDAQ:RGTI) Shares Down 14.9% - Time to Sell?

Key Points

• Rigetti Computing's shares fell sharply by 14.9% to close at $47.97, significantly down from a previous close of $56.34, with trading volume increasing by 84% from average levels.
• Analysts have mixed views on Rigetti, with six rating it as a “Buy” and setting a consensus target price of $28.29, while others have issued sell ratings.
• Directors of the company sold a substantial number of shares in recent transactions, suggesting potential concerns among insiders as they decreased their ownership stakes.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) dropped 14.9% on Thursday . The company traded as low as $46.87 and last traded at $47.97. Approximately 136,128,908 shares traded hands during trading, an increase of 84% from the average daily volume of 74,037,703 shares. The stock had previously closed at $56.34.

Analysts Set New Price Targets

RGTI has been the topic of a number of research reports. 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 note on Monday, August 4th. Cantor Fitzgerald initiated coverage on shares of Rigetti Computing in a research note on Wednesday, July 2nd. They issued an "overweight" rating and a $15.00 price target for the company. Benchmark increased their price target on Rigetti Computing from $20.00 to $50.00 and gave the company a "buy" rating in a research note on Tuesday, October 7th. Industrial Alliance Securities set a $18.00 target price on Rigetti Computing in a research note on Wednesday, July 16th. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Rigetti Computing in a report on Wednesday, October 8th. Six research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $28.29.

Rigetti Computing Price Performance

The stock has a market cap of $15.55 billion, a price-to-earnings ratio of -63.12 and a beta of 1.60. The business's 50-day simple moving average is $25.01 and its two-hundred day simple moving average is $16.25.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 12th. The company reported ($0.05) EPS for the quarter, beating analysts' consensus estimates of ($0.06) by $0.01. Rigetti Computing had a negative return on equity of 29.05% and a negative net margin of 2,134.92%.The firm had revenue of $1.80 million for the quarter, compared to analyst estimates of $1.87 million. Equities research analysts forecast that Rigetti Computing, Inc. will post -0.34 earnings per share for the current year.

Insider Activity

In other news, Director Michael S. Clifton sold 75,000 shares of the stock in a transaction on Friday, September 12th. The shares were sold at an average price of $19.00, for a total transaction of $1,425,000.00. Following the completion of the sale, the director directly owned 653,766 shares in the company, valued at $12,421,554. This represents a 10.29% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Ray O. Johnson sold 126,295 shares of Rigetti Computing stock in a transaction dated 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 completion of the transaction, the director directly owned 293,461 shares of the company's stock, valued at approximately $5,869,220. This trade represents a 30.09% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 392,204 shares of company stock worth $7,517,696. 1.90% of the stock is owned by corporate insiders.

Institutional Trading of Rigetti Computing

Several large investors have recently modified their holdings of RGTI. Trust Co. of Toledo NA OH increased its position in Rigetti Computing by 1.7% in the 3rd quarter. Trust Co. of Toledo NA OH now owns 21,178 shares of the company's stock valued at $631,000 after buying an additional 357 shares in the last quarter. GAMMA Investing LLC raised its stake in shares of Rigetti Computing by 25.6% during the 3rd quarter. GAMMA Investing LLC now owns 2,878 shares of the company's stock worth $86,000 after purchasing an additional 587 shares during the period. Harel Insurance Investments & Financial Services Ltd. grew its position in shares of Rigetti Computing by 20.0% during the 2nd quarter. Harel Insurance Investments & Financial Services Ltd. now owns 6,000 shares of the company's stock valued at $71,000 after acquiring an additional 1,000 shares during the period. IFP Advisors Inc increased its position in Rigetti Computing by 146.1% in the second quarter. IFP Advisors Inc now owns 2,190 shares of the company's stock worth $26,000 after buying an additional 1,300 shares during the last quarter. Finally, Stratos Wealth Partners LTD. raised its stake in Rigetti Computing by 9.8% in the 2nd quarter. Stratos Wealth Partners LTD. now owns 15,048 shares of the company's stock valued at $178,000 after acquiring an additional 1,342 shares during the period. Institutional investors and hedge funds own 35.38% of the company's stock.

About Rigetti Computing

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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