Rigetti Computing (NASDAQ:RGTI) Shares Down 5.6% - Should You Sell?

Key Points

• Shares down 5.6% intraday, trading as low as $16.24 and last at $17.19 on volume of 35.78M shares (about 9% above average) versus a prior close of $18.21.
• Analyst sentiment is broadly positive with 8 Buys, 2 Holds and 1 Sell and a consensus target price of $32.60 (average rating: "Moderate Buy"), with several firms assigning $35–$40 targets.
• The company remains unprofitable (market cap $5.67B, negative P/E and a reported negative net margin and ROE); latest quarter EPS was -$0.03 (beat estimates) while revenue fell 18.1% year-over-year and FY EPS is forecast around -$0.34.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) shares traded down 5.6% during trading on Wednesday . The company traded as low as $16.24 and last traded at $17.19. 35,778,498 shares traded hands during mid-day trading, an increase of 9% from the average session volume of 32,938,305 shares. The stock had previously closed at $18.21.

Analyst Ratings Changes

RGTI has been the topic of several analyst reports. Rosenblatt Securities restated a "buy" rating and set a $40.00 price objective on shares of Rigetti Computing in a report on Wednesday, January 21st. Weiss Ratings reissued a "sell (d-)" rating on shares of Rigetti Computing in a research report on Monday, December 29th. Royal Bank Of Canada lowered shares of Rigetti Computing to a "hold" rating in a research note on Thursday, January 22nd. Wedbush increased their price objective on shares of Rigetti Computing from $35.00 to $40.00 and gave the company an "outperform" rating in a research note on Wednesday, January 21st. Finally, Wall Street Zen raised shares of Rigetti Computing from a "sell" rating to a "hold" rating in a report on Saturday, November 15th. Eight investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $32.60.

Rigetti Computing Stock Down 5.6%

The stock has a market capitalization of $5.67 billion, a P/E ratio of -13.22 and a beta of 1.69. The company has a 50 day moving average of $24.21 and a 200-day moving average of $25.74.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last issued its earnings results on Monday, November 10th. The company reported ($0.03) earnings per share for the quarter, topping analysts' consensus estimates of ($0.05) by $0.02. Rigetti Computing had a negative net margin of 4,741.49% and a negative return on equity of 21.98%. The company had revenue of $1.95 million for the quarter, compared to analysts' expectations of $2.17 million. Rigetti Computing's revenue for the quarter was down 18.1% compared to the same quarter last year. Equities analysts forecast that Rigetti Computing, Inc. will post -0.34 EPS for the current fiscal year.

Hedge Funds Weigh In On Rigetti Computing

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its stake in Rigetti Computing by 40.4% in the third quarter. Vanguard Group Inc. now owns 32,046,477 shares of the company's stock valued at $954,665,000 after buying an additional 9,228,888 shares during the last quarter. Marex Group plc acquired a new stake in shares of Rigetti Computing in the 2nd quarter worth about $87,414,000. Ameriprise Financial Inc. bought a new stake in Rigetti Computing in the 2nd quarter valued at about $21,887,000. Clear Street Group Inc. bought a new stake in Rigetti Computing in the 3rd quarter valued at about $47,752,000. Finally, UBS Group AG boosted its stake in Rigetti Computing by 90.9% during the 3rd quarter. UBS Group AG now owns 3,081,174 shares of the company's stock valued at $91,788,000 after purchasing an additional 1,467,483 shares during the period. 35.38% of the stock is currently 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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