Rigetti Computing (NASDAQ:RGTI) Shares Down 1.9% - Here's What Happened

Key Points

• Rigetti Computing shares fell 1.9% on Wednesday, trading as low as $20.17 before last changing hands at $20.25, with volume below its daily average.
• Analyst sentiment remains mixed but generally positive: Rigetti has an average “Moderate Buy” rating and a $29.18 average price target, though some firms recently downgraded or cut targets.
• The company’s latest earnings beat expectations on both EPS and revenue, but insiders have been selling shares in recent months, including large disposals by the CTO and a director.

Shares of Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) were down 1.9% during trading on Wednesday . The stock traded as low as $20.17 and last traded at $20.25. Approximately 25,505,644 shares were traded during mid-day trading, a decline of 29% from the average daily volume of 35,973,602 shares. The stock had previously closed at $20.64.

Wall Street Analyst Weigh In

RGTI has been the topic of several recent research reports. Wall Street Zen upgraded Rigetti Computing from a "sell" rating to a "hold" rating in a report on Saturday, May 23rd. Needham & Company LLC reiterated a "buy" rating and issued a $31.00 price objective on shares of Rigetti Computing in a report on Tuesday, May 12th. Northland Securities initiated coverage on Rigetti Computing in a report on Monday, April 20th. They issued a "market perform" rating and a $20.00 price objective on the stock. Weiss Ratings reiterated a "sell (e+)" rating on shares of Rigetti Computing in a report on Tuesday, June 2nd. Finally, Mizuho dropped their price objective on Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating on the stock in a report on Tuesday, May 12th. Eight 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.com, Rigetti Computing presently has an average rating of "Moderate Buy" and an average target price of $29.18.

Rigetti Computing Stock Performance

The stock has a market capitalization of $6.73 billion, a price-to-earnings ratio of -23.28 and a beta of 1.88. The business has a 50-day moving average of $19.66 and a 200-day moving average of $20.13.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last announced its earnings results on Monday, May 11th. The company reported ($0.04) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.05) by $0.01. The firm had revenue of $4.40 million during the quarter, compared to analysts' expectations 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 revenue was up 198.9% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.05) EPS. On average, research analysts predict that Rigetti Computing, Inc. will post -0.22 earnings per share for the current fiscal year.

Insider Activity at Rigetti Computing

In related news, CTO David Rivas sold 499,328 shares of the company's stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $25.40, for a total value 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Ray O. Johnson sold 122,188 shares of the company's stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $21.30, for a total value of $2,602,604.40. Following the completion of the sale, the director directly owned 171,273 shares of the company's stock, valued at approximately $3,648,114.90. This trade represents a 41.64% decrease in their ownership of the stock. 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 643,957 shares of company stock valued at $15,800,744 in the last three months. 1.60% of the stock is currently owned by company insiders.

Institutional Trading of Rigetti Computing

A number of hedge funds have recently added to or reduced their stakes in the stock. Rothschild Investment LLC lifted its position in Rigetti Computing by 26.1% during the 3rd quarter. Rothschild Investment LLC now owns 1,665 shares of the company's stock worth $50,000 after acquiring an additional 345 shares during the period. Kestra Private Wealth Services LLC lifted its position in Rigetti Computing by 1.4% during the 4th quarter. Kestra Private Wealth Services LLC now owns 37,534 shares of the company's stock worth $831,000 after acquiring an additional 535 shares during the period. MAI Capital Management lifted its position in Rigetti Computing by 17.7% during the 3rd quarter. MAI Capital Management now owns 3,763 shares of the company's stock worth $112,000 after acquiring an additional 566 shares during the period. Global Retirement Partners LLC lifted its position in Rigetti Computing by 10.2% during the 4th quarter. Global Retirement Partners LLC now owns 6,656 shares of the company's stock worth $147,000 after acquiring an additional 615 shares during the period. Finally, Huntington National Bank lifted its position in Rigetti Computing by 60.6% during the 3rd quarter. Huntington National Bank now owns 1,688 shares of the company's stock worth $50,000 after acquiring an additional 637 shares during the period. 35.38% of the stock is owned by institutional investors and hedge funds.

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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