Rigetti Computing (NASDAQ:RGTI) Shares Down 3.4% on Analyst Downgrade

Key Points

• Rigetti Computing shares fell 3.4% after Mizuho cut its price target from $33 to $27, even though it maintained an outperform rating. The stock traded as low as $17.89 during the session.
• Despite the pullback, Rigetti recently beat Q1 earnings and revenue estimates, with losses narrowing to 4 cents per share and revenue rising 198.9% year over year to $4.4 million. Analysts currently have a consensus rating of Moderate Buy with an average target price of $29.18.
• Insiders sold shares recently, including the CTO and CFO on March 10, while institutional investors such as Royal Bank of Canada and AQR Capital Management increased their holdings. Institutional ownership stands at 35.38%.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) shares traded down 3.4% on Wednesday after Mizuho lowered their price target on the stock from $33.00 to $27.00. Mizuho currently has an outperform rating on the stock. Rigetti Computing traded as low as $17.89 and last traded at $18.42. 27,011,924 shares traded hands during mid-day trading, a decline of 10% from the average session volume of 29,962,213 shares. The stock had previously closed at $19.07.

RGTI has been the subject of several other research reports. TD Cowen cut shares of Rigetti Computing from a "buy" rating to a "hold" rating in a research report on Thursday, February 12th. Rosenblatt Securities restated a "buy" rating and issued a $40.00 price objective on shares of Rigetti Computing in a research report on Thursday, March 5th. Royal Bank Of Canada cut shares of Rigetti Computing to a "hold" rating in a research report on Thursday, January 22nd. B. Riley Financial upgraded shares of Rigetti Computing from a "neutral" rating to a "buy" rating and set a $35.00 price objective for the company in a research report on Thursday, January 22nd. Finally, Needham & Company LLC reiterated a "buy" rating and set a $31.00 price target on shares of Rigetti Computing in a research report on Tuesday. Eight research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $29.18.

Insider Activity at Rigetti Computing

In other news, CTO David Rivas sold 36,719 shares of Rigetti Computing stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $17.52, for a total transaction of $643,316.88. Following the completion of the sale, the chief technology officer owned 651,914 shares in the company, valued at $11,421,533.28. The trade was a 5.33% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Jeffrey A. Bertelsen sold 4,270 shares of Rigetti Computing stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $17.52, for a total transaction of $74,810.40. Following the sale, the chief financial officer owned 175,609 shares of the company's stock, valued at approximately $3,076,669.68. This represents a 2.37% decrease in their position. The SEC filing for this sale provides additional information. 1.60% of the stock is owned by insiders.

Rigetti Computing News Roundup

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

• Positive Sentiment: Rigetti beat Q1 earnings and revenue estimates, with losses narrowing to 4 cents per share and gross margins improving, which supports the view that execution is getting better. Rigetti Q1 Earnings & Revenues Beat Estimates, Gross Margin Up
• Positive Sentiment: The launch of Rigetti’s Cepheus-1-108Q system and expanding cloud access are viewed as technical milestones that could help drive future demand and partnerships. RGTI Hits Technical Milestones Amid Early Demand: Time to Buy or Hold?
• Neutral Sentiment: Analyst notes from Needham and Mizuho remain constructive overall, with both firms keeping favorable ratings, though Mizuho trimmed its price target. Rigetti Computing stock news and analyst coverage
• Negative Sentiment: Investors are still worried that Rigetti’s revenue base is small and commercial adoption is limited, making the stock vulnerable to selloffs after earnings despite the headline beat. Why Rigetti Computing Stock Is Tanking
• Negative Sentiment: Articles questioning Rigetti’s valuation argue the company’s market cap is high relative to its revenue, reinforcing concerns that the stock may be priced for growth that has not yet fully materialized. A Quantum Shift: Why Speculative Money Is Ditching AI

Institutional Trading of Rigetti Computing

A number of institutional investors have recently made changes to their positions in RGTI. Royal Bank of Canada lifted its position in shares of Rigetti Computing by 106.2% in the first quarter. Royal Bank of Canada now owns 220,701 shares of the company's stock worth $1,748,000 after purchasing an additional 113,644 shares in the last quarter. AQR Capital Management LLC lifted its position in shares of Rigetti Computing by 138.9% in the first quarter. AQR Capital Management LLC now owns 81,047 shares of the company's stock worth $642,000 after purchasing an additional 47,115 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Rigetti Computing by 25.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 112,409 shares of the company's stock worth $890,000 after purchasing an additional 22,770 shares in the last quarter. NewEdge Advisors LLC lifted its position in shares of Rigetti Computing by 197.8% in the first quarter. NewEdge Advisors LLC now owns 25,592 shares of the company's stock worth $203,000 after purchasing an additional 16,998 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC bought a new stake in shares of Rigetti Computing in the first quarter worth $3,115,000. Institutional investors own 35.38% of the company's stock.

Rigetti Computing Price Performance

The stock's 50-day moving average price is $16.51 and its 200 day moving average price is $21.93. The firm has a market cap of $6.12 billion, a P/E ratio of -21.17 and a beta of 1.79.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last announced 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. Rigetti Computing had a negative net margin of 2,789.71% and a negative return on equity of 10.90%. The business had revenue of $4.40 million for the quarter, compared to analyst estimates of $4.09 million. During the same quarter in the previous year, the firm posted ($0.05) earnings per share. The firm's revenue for the quarter was up 198.9% on a year-over-year basis. As a group, analysts forecast that Rigetti Computing, Inc. will post -0.16 EPS for the current fiscal year.

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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