Rigetti Computing (NASDAQ:RGTI) Shares Down 5.5% Following Insider Selling

Key Points

• Rigetti Computing shares fell 5.5% to $16.07 after three executives sold shares, including the CTO and COO. The transactions were disclosed as sales to cover tax withholding obligations tied to vested equity awards.
• Analyst sentiment remains broadly positive, with seven Buy ratings, four Holds and one Sell; the consensus is “Moderate Buy” with an average price target of $30.67.
• Although second-quarter revenue rose to $5.14 million from $1.80 million a year earlier, Rigetti remains deeply unprofitable, reporting a $52.61 million net loss and continuing concerns about valuation and cash usage.

Shares of Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) dropped 5.5% during trading on Thursday following insider selling activity. The company traded as low as $15.67 and last traded at $16.07. Approximately 19,809,523 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 32,422,594 shares. The stock had previously closed at $17.00.

Specifically, CTO Andrew Joseph Bestwick sold 5,791 shares of the stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $16.81, for a total transaction of $97,346.71. Following the completion of the transaction, the chief technology officer owned 1,036,121 shares of the company's stock, valued at approximately $17,417,194.01. This trade represents a 0.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO David Rivas sold 9,038 shares of Rigetti Computing stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $16.79, for a total transaction of $151,748.02. Following the completion of the sale, the chief operating officer owned 316,907 shares of the company's stock, valued at $5,320,868.53. This trade represents a 2.77% 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. In other Rigetti Computing news, CFO Jeffrey A. Bertelsen sold 3,860 shares of the business's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $16.89, for a total value of $65,195.40. Following the sale, the chief financial officer owned 168,067 shares of the company's stock, valued at $2,838,651.63. The trade was a 2.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Wall Street Analyst Weigh In

RGTI has been the subject of several research analyst reports. Wedbush initiated coverage on Rigetti Computing in a research report on Monday, August 3rd. They set an "outperform" rating and a $40.00 price target for the company. Benchmark assumed coverage on Rigetti Computing in a report on Monday, July 27th. They issued a "buy" rating and a $25.00 price objective on the stock. Rosenblatt Securities reissued a "buy" rating and set a $40.00 target price on shares of Rigetti Computing in a research note on Friday, August 7th. Mizuho lowered their target price on Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating for the company in a report on Tuesday, May 12th. Finally, Weiss Ratings downgraded Rigetti Computing from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Tuesday, August 11th. Seven analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $30.67.

Trending Headlines about Rigetti Computing

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

• Positive Sentiment: Rigetti created a dedicated Systems Delivery organization to support growing demand for on-premises quantum systems. David Rivas was appointed Chief Operating Officer to oversee manufacturing, delivery, customer-facing engineering, and commercial operations, while Andrew Bestwick, Ph.D., became Chief Technology Officer to focus on chip and processor development. The company is targeting 99.5% median two-qubit gate fidelity for its Cepheus-1-108Q system. Rigetti operating structure announcement
• Positive Sentiment: Second-quarter revenue increased to $5.14 million from $1.80 million a year earlier, and Rigetti received a U.S. Department of Commerce letter of intent for up to $100 million in quantum research and development support. New system deliveries involving partners including Nvidia and HPE also strengthen the commercial-growth narrative, although the company remains deeply unprofitable. Rigetti revenue and R&D support article
• Neutral Sentiment: Analyst coverage remains broadly bullish, with previously published price targets ranging from $25 to $40, well above recent trading levels. However, these targets are based on expectations for future technology and commercial execution rather than current profitability. Rigetti analyst views
• Negative Sentiment: Investors viewed the separation of delivery and chip-development leadership as a major shake-up, intensifying concerns that Rigetti may have needed a reorganization to address execution challenges. The upcoming resignation of board member Dr. Ray Johnson adds to the perception of leadership turnover. Rigetti leadership shake-up article
• Negative Sentiment: Quantum-computing stocks were sold broadly, including Rigetti, IonQ, and D-Wave, without a clear company-specific catalyst. The sector remains highly sensitive to interest rates and risk appetite because these companies are pre-profit and richly valued. Quantum stock selloff article
• Negative Sentiment: Despite strong revenue growth, Rigetti’s second-quarter net loss widened to $52.61 million from $39.65 million a year earlier. The company’s continuing losses and reported insider selling further reinforce investor concerns about valuation and cash usage.

Rigetti Computing Trading Down 5.5%

The company has a market capitalization of $5.36 billion, a price-to-earnings ratio of -17.86 and a beta of 1.99. The stock's fifty day simple moving average is $17.53 and its 200-day simple moving average is $17.74.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.05) EPS for the quarter, hitting the consensus estimate of ($0.05). Rigetti Computing had a negative net margin of 2,189.54% and a negative return on equity of 17.50%. The business had revenue of $5.14 million during the quarter, compared to the consensus estimate of $5.09 million. On average, analysts anticipate that Rigetti Computing, Inc. will post -0.22 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of RGTI. Royal Bank of Canada grew its stake in Rigetti Computing by 106.2% during the 1st 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 raised its position in Rigetti Computing by 138.9% in the 1st quarter. AQR Capital Management LLC now owns 81,047 shares of the company's stock valued at $642,000 after purchasing an additional 47,115 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Rigetti Computing by 25.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 112,409 shares of the company's stock valued at $890,000 after buying an additional 22,770 shares during the period. NewEdge Advisors LLC boosted its stake in shares of Rigetti Computing by 197.8% in the 1st quarter. NewEdge Advisors LLC now owns 25,592 shares of the company's stock valued at $203,000 after buying an additional 16,998 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new position in shares of Rigetti Computing during the first quarter worth about $3,115,000. 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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