Rigetti Computing (NASDAQ:RGTI) Shares Down 5.5% - What's Next?

Key Points

• Rigetti Computing shares fell 5.5% on Friday, trading as low as $24.44 after closing at $27.03, even as volume surged to more than 60.7 million shares, well above average.
• Investor sentiment remains supported by federal backing for quantum computing and Rigetti’s recent 108-qubit Cepheus-1 launch, both of which are fueling hopes for eventual quantum advantage and commercial momentum.
• Analysts remain broadly constructive, with a Moderate Buy consensus and an average price target of $29.18; Rigetti also recently beat quarterly EPS and revenue estimates, though the company is still unprofitable.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) traded down 5.5% on Friday . The company traded as low as $24.44 and last traded at $25.54. 60,787,678 shares traded hands during mid-day trading, an increase of 76% from the average session volume of 34,444,297 shares. The stock had previously closed at $27.03.

Key Rigetti Computing News

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

• Positive Sentiment: The biggest driver is fresh federal backing for quantum computing, with reports that the U.S. government will invest up to $100 million in Rigetti and two peers, while President Trump’s broader $2.013 billion incentive package could further support the sector. The U.S. Government Just Invested in These 3 Quantum Computing Stocks. Should Retail Investors Follow Suit?
• Positive Sentiment: Investor enthusiasm is also being fueled by Rigetti’s 108-qubit Cepheus-1 launch, which keeps hopes alive for eventual quantum advantage and signals continued product progress. Rigetti Computing's 108-Qubit Push Keeps Quantum Advantage Hopes Alive
• Positive Sentiment: Commentary around rising QPU demand and a potential commercial breakout has reinforced the idea that Rigetti may be moving closer to monetizing its technology. Rigetti Computing's 108-Qubit Push Keeps Quantum Advantage Hopes Alive
• Neutral Sentiment: Several articles highlighted a breakout setup and institutional interest, suggesting traders are positioning for more upside, but these are more sentiment-driven than fundamental developments. This Quantum Computing Stock May Be Closer to a Breakout Than You Think
• Neutral Sentiment: Coverage on quantum stocks as a broader sector trade, including comparisons to an “AI boom” narrative, is adding momentum across the group rather than pointing to a Rigetti-specific catalyst. Stock Market Today, May 28: Rigetti Computing Extends Gains on Quantum Optimism
• Neutral Sentiment: One note reported short-interest data that was effectively flat and not meaningful, so it does not appear to be a real driver for the stock. Quantum Computing's Commercial Breakout Has Arrived (RGTI)

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. Needham & Company LLC reissued a "buy" rating and issued a $31.00 price target on shares of Rigetti Computing in a report on Tuesday, May 12th. Benchmark cut their price objective on Rigetti Computing from $35.00 to $25.00 and set a "buy" rating on the stock in a report on Friday, March 20th. TD Cowen downgraded Rigetti Computing from a "buy" rating to a "hold" rating in a report on Thursday, February 12th. Mizuho cut their price objective on Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating on the stock in a report on Tuesday, May 12th. Finally, Wall Street Zen upgraded Rigetti Computing from a "sell" rating to a "hold" rating in a report on Saturday, May 23rd. Eight equities 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. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $29.18.

Rigetti Computing Trading Down 5.5%

The company has a fifty day simple moving average of $17.59 and a 200-day simple moving average of $20.49. The stock has a market cap of $8.49 billion, a price-to-earnings ratio of -29.36 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 the consensus estimate 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 for the quarter, compared to analysts' expectations of $4.09 million. During the same quarter in the previous year, the business posted ($0.05) EPS. The business's revenue for the quarter was up 198.9% on a year-over-year basis. As a group, analysts anticipate that Rigetti Computing, Inc. will post -0.19 earnings per share for the current year.

Insider Activity

In other Rigetti Computing news, CFO Jeffrey A. Bertelsen sold 4,270 shares of Rigetti Computing stock in a transaction dated Tuesday, March 10th. The stock was sold at an average price of $17.52, for a total transaction of $74,810.40. Following the transaction, the chief financial officer owned 175,609 shares of the company's stock, valued at $3,076,669.68. The trade was a 2.37% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CTO David Rivas sold 36,719 shares of Rigetti Computing stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $17.52, for a total value of $643,316.88. Following the transaction, the chief technology officer directly owned 651,914 shares in the company, valued at approximately $11,421,533.28. This trade represents a 5.33% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 63,430 shares of company stock worth $1,233,336. Company insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On Rigetti Computing

Several institutional investors and hedge funds have recently bought and sold shares of RGTI. Penserra Capital Management LLC increased its holdings in Rigetti Computing by 43.8% in the third quarter. Penserra Capital Management LLC now owns 2,445,818 shares of the company's stock worth $72,860,000 after buying an additional 744,577 shares during the last quarter. Clear Street Group Inc. acquired a new stake in Rigetti Computing in the third quarter valued at approximately $47,752,000. Federated Hermes Inc. lifted its stake in Rigetti Computing by 6,219.1% in the third quarter. Federated Hermes Inc. now owns 100,853 shares of the company's stock valued at $3,004,000 after acquiring an additional 99,257 shares during the last quarter. Van ECK Associates Corp lifted its stake in Rigetti Computing by 384.2% in the third quarter. Van ECK Associates Corp now owns 548,217 shares of the company's stock valued at $16,331,000 after acquiring an additional 434,995 shares during the last quarter. Finally, Spear Advisors LLC acquired a new stake in Rigetti Computing in the fourth quarter valued at approximately $2,062,000. Hedge funds and other 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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