Rigetti Computing (NASDAQ:RGTI) Shares Down 3.8% - Time to Sell?

Key Points

• Rigetti Computing shares fell 3.8% to $16.78, below both its 50-day and 200-day moving averages, while trading volume was 43% below its daily average.
• Wall Street remains broadly positive, with seven Buy, four Hold, and one Sell rating; the consensus is “Moderate Buy” with a $32 price target.
• The company beat quarterly earnings and revenue expectations, with revenue up 198.9% year over year, but it continues to report significant losses. Insiders sold approximately $17.5 million of stock over the past 90 days.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) dropped 3.8% during trading on Wednesday . The company traded as low as $16.69 and last traded at $16.78. 18,998,025 shares were traded during mid-day trading, a decline of 43% from the average daily volume of 33,434,930 shares. The stock had previously closed at $17.45.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. Rosenblatt Securities reiterated a "buy" rating and set a $40.00 price target on shares of Rigetti Computing in a research note on Thursday, June 11th. Northland Securities began coverage on shares of Rigetti Computing in a report on Monday, April 20th. They set a "market perform" rating and a $20.00 price objective for the company. Wedbush initiated coverage on shares of Rigetti Computing in a research report on Monday. They set an "outperform" rating and a $40.00 target price on the stock. Wall Street Zen raised shares of Rigetti Computing from a "sell" rating to a "hold" rating in a research note on Monday, July 20th. Finally, Needham & Company LLC reissued a "buy" rating and issued a $31.00 price target on shares of Rigetti Computing in a research report on Tuesday, May 12th. Seven equities research 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, Rigetti Computing currently has an average rating of "Moderate Buy" and a consensus price target of $32.00.

Rigetti Computing Stock Down 3.8%

The business has a 50-day simple moving average of $18.80 and a two-hundred day simple moving average of $18.18. The stock has a market capitalization of $5.58 billion, a P/E ratio of -19.29 and a beta of 1.99.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last issued its quarterly earnings data 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. Rigetti Computing had a negative return on equity of 10.40% and a negative net margin of 2,789.71%.The company had revenue of $4.40 million during the quarter, compared to analysts' expectations of $4.09 million. During the same period last year, the business earned ($0.05) earnings per share. The business's revenue was up 198.9% on a year-over-year basis. On average, sell-side analysts forecast that Rigetti Computing, Inc. will post -0.23 earnings per share for the current year.

Insider Activity at Rigetti Computing

In other news, CFO Jeffrey A. Bertelsen sold 3,682 shares of the firm'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 completion of the sale, the chief financial officer owned 171,927 shares of the company's stock, valued at approximately $3,945,724.65. This trade represents a 2.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 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 Rigetti Computing stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $25.40, for a total transaction of $12,682,931.20. Following the completion of the transaction, the chief technology officer owned 325,945 shares of the company's stock, valued at $8,279,003. This trade represents a 60.50% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 728,901 shares of company stock valued at $17,546,343 in the last ninety days. Insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On Rigetti Computing

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Clear Street Group Inc. raised its holdings in shares of Rigetti Computing by 71.1% in the fourth quarter. Clear Street Group Inc. now owns 2,743,150 shares of the company's stock valued at $60,761,000 after buying an additional 1,140,183 shares during the last quarter. Patriot Financial Group Insurance Agency LLC grew its holdings in Rigetti Computing by 105.3% during the 1st quarter. Patriot Financial Group Insurance Agency LLC now owns 123,460 shares of the company's stock worth $1,733,000 after acquiring an additional 63,331 shares during the last quarter. Intech Investment Management LLC grew its holdings in Rigetti Computing by 66.3% during the 4th quarter. Intech Investment Management LLC now owns 120,260 shares of the company's stock worth $2,664,000 after acquiring an additional 47,935 shares during the last quarter. Spear Advisors LLC acquired a new stake in Rigetti Computing in the 4th quarter valued at about $2,062,000. Finally, Eurizon Capital SGR S.p.A. acquired a new stake in Rigetti Computing in the 4th quarter valued at about $4,937,000. 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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