Rigetti Computing (NASDAQ:RGTI) Shares Down 5.1% After Insider Selling

Key Points

• Rigetti Computing shares fell 5.1% after insider selling, with the stock trading below its prior close on heavy volume that was far above average.
• CTO David Rivas and CFO Jeffrey A. Bertelsen both sold shares on May 22, but the company said the transactions were to cover tax withholding obligations tied to vesting equity awards.
• Despite the pullback, analyst sentiment remains mixed-to-bullish overall, with a consensus rating of Moderate Buy and a target price of $29.18; the company also recently beat quarterly EPS estimates and posted strong year-over-year revenue growth.

Shares of Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) were down 5.1% during trading on Tuesday following insider selling activity. The stock traded as low as $23.72 and last traded at $25.07. Approximately 88,159,800 shares traded hands during trading, an increase of 164% from the average daily volume of 33,424,715 shares. The stock had previously closed at $26.42.

Specifically, CTO David Rivas sold 18,759 shares of Rigetti Computing stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $22.96, for a total transaction of $430,706.64. Following the transaction, the chief technology officer owned 713,155 shares in the company, valued at approximately $16,374,038.80. The trade was a 2.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jeffrey A. Bertelsen sold 3,682 shares of the business's stock in a transaction 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 transaction, the chief financial officer owned 171,927 shares in the company, valued at approximately $3,945,724.65. The trade was a 2.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Analyst Upgrades and Downgrades

RGTI has been the topic of several research reports. Northland Securities initiated 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 on the stock. TD Cowen lowered shares of Rigetti Computing from a "buy" rating to a "hold" rating in a report on Thursday, February 12th. Rosenblatt Securities reiterated a "buy" rating and set a $40.00 price objective on shares of Rigetti Computing in a report on Thursday, March 5th. Wall Street Zen upgraded shares of Rigetti Computing from a "sell" rating to a "hold" rating in a report on Saturday. Finally, Needham & Company LLC reiterated a "buy" rating and set a $31.00 price objective on shares of Rigetti Computing in a report on Tuesday, May 12th. Eight research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $29.18.

Key Rigetti Computing News

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

• Positive Sentiment: Rigetti is benefiting from news that the federal government plans to provide hundreds of millions of dollars to support domestic quantum foundry and technology development, reinforcing the company’s strategic role in U.S. quantum computing efforts. Quantum Stocks Just Got a Lifeline—Who Benefits Most? (RGTI)
• Positive Sentiment: The stock saw unusually heavy call-option buying, suggesting traders are positioning for more upside and adding to the recent momentum in shares. Rigetti Computing Sees Unusually High Options Volume NASDAQ: RGTI
• Positive Sentiment: Rigetti has also been highlighted as one of last week’s biggest movers, with the stock posting a sharp weekly gain alongside other speculative names, which can attract momentum-focused investors. BB, SIDU, RGTI Stocks Lead Last Week’s Wildest Upswings: Here's What Happened
• Neutral Sentiment: Broader media attention is also increasing, with articles comparing Rigetti to peers and noting that investors are heavily searching for the stock. This reflects heightened interest, though it does not by itself change fundamentals. Investors Heavily Search Rigetti Computing, Inc. (RGTI): Here is What You Need to Know
• Neutral Sentiment: Competitive commentary remains mixed: a Zacks comparison said QBTS currently has stronger near-term traction, while Rigetti is still positioned around longer-term gate-model quantum breakthroughs. RGTI vs QBTS: Which Quantum Computing Stock Holds More Promise?
• Neutral Sentiment: Additional headlines about Quantinuum’s IPO and a revived quantum IPO market have lifted sentiment for the broader sector, indirectly supporting Rigetti’s valuation narrative. Honeywell-Backed Quantinuum Seeks to Raise $1.05 Billion in IPO

Rigetti Computing Trading Down 5.1%

The stock's 50-day moving average price is $17.03 and its two-hundred day moving average price is $20.69. The stock has a market capitalization of $8.33 billion, a P/E ratio of -28.82 and a beta of 1.79.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last released its earnings results on Monday, May 11th. The company reported ($0.04) earnings per share for the quarter, beating 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 10.40%. The firm had revenue of $4.40 million during the quarter, compared to the consensus estimate of $4.09 million. During the same period in the prior year, the firm earned ($0.05) EPS. The company's revenue was up 198.9% compared to the same quarter last year. On average, equities research analysts predict that Rigetti Computing, Inc. will post -0.19 earnings per share for the current year.

Institutional Trading of Rigetti Computing

A number of institutional investors have recently modified their holdings of the business. Rothschild Investment LLC lifted its stake in shares of Rigetti Computing by 26.1% during the 3rd quarter. Rothschild Investment LLC now owns 1,665 shares of the company's stock valued at $50,000 after buying an additional 345 shares in the last quarter. Prospera Financial Services Inc lifted its stake in shares of Rigetti Computing by 1.0% during the 3rd quarter. Prospera Financial Services Inc now owns 41,789 shares of the company's stock valued at $1,245,000 after buying an additional 419 shares in the last quarter. Kestra Private Wealth Services LLC lifted its stake in shares of Rigetti Computing by 1.4% during the 4th quarter. Kestra Private Wealth Services LLC now owns 37,534 shares of the company's stock valued at $831,000 after buying an additional 535 shares in the last quarter. MAI Capital Management lifted its stake in shares of Rigetti Computing by 17.7% during the 3rd quarter. MAI Capital Management now owns 3,763 shares of the company's stock valued at $112,000 after buying an additional 566 shares in the last quarter. Finally, Global Retirement Partners LLC lifted its stake in Rigetti Computing by 10.2% in the 4th quarter. Global Retirement Partners LLC now owns 6,656 shares of the company's stock worth $147,000 after purchasing an additional 615 shares in the last quarter. 35.38% of the stock is currently owned by hedge funds and other institutional investors.

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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