Rigetti Computing (NASDAQ:RGTI) Shares Down 4% - Time to Sell?

Key Points

• Rigetti Computing shares fell 4% to $17.00 in mid-day trading, with volume below its average. The company has a $5.67 billion market capitalization and highly volatile trading profile.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average price target of $30.67, although some firms recently lowered ratings or targets, including sell recommendations from Wall Street Zen and Weiss Ratings.
• Rigetti met quarterly EPS expectations and slightly exceeded revenue estimates, but continues to report substantial losses. Insiders sold about $17.5 million of stock over the past three months, while institutional investors own 35.38% of shares.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) shares traded down 4% on Wednesday . The stock traded as low as $16.67 and last traded at $17.00. 19,153,316 shares were traded during mid-day trading, a decline of 41% from the average session volume of 32,501,789 shares. The stock had previously closed at $17.71.

Analyst Upgrades and Downgrades

RGTI has been the subject of several research analyst reports. Rosenblatt Securities reissued a "buy" rating and issued a $40.00 price target on shares of Rigetti Computing in a report on Friday, August 7th. Wedbush started coverage on Rigetti Computing in a report on Monday, August 3rd. They issued an "outperform" rating and a $40.00 price target for the company. Mizuho dropped their price target on Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating on the stock in a research report on Tuesday, May 12th. Wall Street Zen lowered Rigetti Computing from a "hold" rating to a "sell" rating in a research report on Saturday, August 8th. Finally, Weiss Ratings downgraded shares of Rigetti Computing from a "sell (d-)" rating to a "sell (e+)" rating in a report on Tuesday, August 11th. Seven research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $30.67.

Rigetti Computing Trading Down 4.0%

The company has a 50 day simple moving average of $17.58 and a 200 day simple moving average of $17.76. The stock has a market cap of $5.67 billion, a P/E ratio of -18.89 and a beta of 1.99.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.05) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.05). The company had revenue of $5.14 million for the quarter, compared to the consensus estimate of $5.09 million. Rigetti Computing had a negative net margin of 2,189.54% and a negative return on equity of 17.50%. As a group, sell-side analysts expect that Rigetti Computing, Inc. will post -0.22 earnings per share for the current year.

Insider Buying and Selling at Rigetti Computing

In related news, Director Ray O. Johnson sold 84,944 shares of the stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $20.55, for a total transaction of $1,745,599.20. Following the completion of the transaction, the director directly owned 95,537 shares of the company's stock, valued at approximately $1,963,285.35. This represents a 47.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO David Rivas sold 499,328 shares of the stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $25.40, for a total value of $12,682,931.20. Following the transaction, the chief technology officer directly owned 325,945 shares of the company's stock, valued at $8,279,003. This trade represents a 60.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 728,901 shares of company stock worth $17,546,343. Insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On Rigetti Computing

Institutional investors and hedge funds have recently made changes to their positions in the stock. Clear Street Group Inc. grew its position in shares of Rigetti Computing by 71.1% during the 4th quarter. Clear Street Group Inc. now owns 2,743,150 shares of the company's stock worth $60,761,000 after purchasing an additional 1,140,183 shares in the last quarter. Patriot Financial Group Insurance Agency LLC raised its position in shares of Rigetti Computing by 105.3% in the first quarter. Patriot Financial Group Insurance Agency LLC now owns 123,460 shares of the company's stock valued at $1,733,000 after buying an additional 63,331 shares in the last quarter. Intech Investment Management LLC boosted its stake in shares of Rigetti Computing by 66.3% in the fourth quarter. Intech Investment Management LLC now owns 120,260 shares of the company's stock valued at $2,664,000 after buying an additional 47,935 shares during the period. Spear Advisors LLC acquired a new stake in Rigetti Computing during the fourth quarter worth approximately $2,062,000. Finally, Eurizon Capital SGR S.p.A. acquired a new stake in Rigetti Computing during the fourth quarter worth approximately $4,937,000. Institutional investors own 35.38% of the company's stock.

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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