Rigetti Computing (NASDAQ:RGTI) Shares Down 7% Following Analyst Downgrade

Key Points

• Rigetti Computing shares fell 7% after Mizuho cut its price target from $33 to $27, though it kept an outperform rating. The stock traded as low as $18.23 on heavy volume, well above its prior close of $20.51.
• Despite the pullback, recent analyst sentiment remains mixed but generally constructive, with multiple firms still rating the stock a buy or outperform. Rigetti currently has a consensus Moderate Buy rating and an average target price of $29.18.
• The company recently beat Q1 expectations, reporting a smaller-than-expected loss and stronger revenue growth, but investors appear focused on its continued lack of profitability. Insiders also sold shares in March, including the CTO and CFO.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) dropped 7% during mid-day trading on Tuesday after Mizuho lowered their price target on the stock from $33.00 to $27.00. Mizuho currently has an outperform rating on the stock. Rigetti Computing traded as low as $18.23 and last traded at $19.07. Approximately 49,197,561 shares changed hands during trading, an increase of 64% from the average daily volume of 30,012,105 shares. The stock had previously closed at $20.51.

Other research analysts have also issued reports about the stock. Royal Bank Of Canada lowered shares of Rigetti Computing to a "hold" rating in a research report on Thursday, January 22nd. Wall Street Zen lowered shares of Rigetti Computing from a "hold" rating to a "sell" rating in a research report on Sunday, April 26th. Wedbush upped their target price on shares of Rigetti Computing from $35.00 to $40.00 and gave the stock an "outperform" rating in a research report on Wednesday, January 21st. Northland Securities initiated coverage on shares of Rigetti Computing in a research report on Monday, April 20th. They issued a "market perform" rating and a $20.00 target price for the company. Finally, B. Riley Financial upgraded shares of Rigetti Computing from a "neutral" rating to a "buy" rating and set a $35.00 target price for the company in a research report on Thursday, January 22nd. 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 stock. Based on data from MarketBeat, Rigetti Computing presently has a consensus rating of "Moderate Buy" and an average target price of $29.18.

Insider Buying and Selling at Rigetti Computing

In other Rigetti Computing news, CTO David Rivas sold 36,719 shares of the business's stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $17.52, for a total value of $643,316.88. Following the completion of the sale, the chief technology officer directly owned 651,914 shares of the company's stock, valued at $11,421,533.28. The trade was a 5.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Jeffrey A. Bertelsen sold 4,270 shares of the business's stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $17.52, for a total transaction of $74,810.40. Following the completion of the sale, the chief financial officer directly owned 175,609 shares of the company's stock, valued at $3,076,669.68. This represents a 2.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.60% of the company's stock.

Key Rigetti Computing News

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

• Positive Sentiment: Rigetti topped Q1 expectations, posting a smaller-than-expected loss of $0.04 per share versus estimates of $0.05, while revenue of $4.4 million also exceeded forecasts. Rigetti Computing tops Q1 earnings estimates as loss narrows
• Positive Sentiment: Revenue jumped 198.9% year over year, gross margin improved, and the company highlighted growing adoption of its quantum systems and cloud platforms. Rigetti Q1 Earnings & Revenues Beat Estimates, Gross Margin Up
• Positive Sentiment: Analyst sentiment remained constructive, with Needham reaffirming a Buy rating and Mizuho still rating the stock Outperform, even after trimming its price target. Analyst update via Benzinga/The Fly
• Neutral Sentiment: The company also pointed to continued progress on its superconducting quantum systems and chiplet-based architecture, including a 108-qubit system launch, which supports its long-term technology roadmap.
• Negative Sentiment: Despite the beat, the stock moved lower as investors seemed disappointed that Rigetti is still posting losses and remains far from consistent profitability, especially after a stock run-up ahead of earnings. Rigetti Computing falls as Q1 results meet estimates

Institutional Trading of Rigetti Computing

Several hedge funds have recently added to or reduced their stakes in RGTI. 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 worth $954,665,000 after purchasing an additional 9,228,888 shares during the last quarter. Victory Capital Management Inc. lifted its stake in Rigetti Computing by 1,632.5% in the fourth quarter. Victory Capital Management Inc. now owns 2,571,289 shares of the company's stock worth $56,954,000 after purchasing an additional 2,422,873 shares during the last quarter. Ameriprise Financial Inc. bought a new position in shares of Rigetti Computing during the second quarter valued at about $21,887,000. Norges Bank bought a new position in shares of Rigetti Computing during the fourth quarter valued at about $38,889,000. Finally, Clear Street Group Inc. bought a new position in shares of Rigetti Computing during the third quarter valued at about $47,752,000. 35.38% of the stock is owned by institutional investors.

Rigetti Computing Price Performance

The stock has a market capitalization of $6.33 billion, a P/E ratio of -28.04 and a beta of 1.79. The firm's 50 day moving average price is $16.47 and its 200 day moving average price is $22.05.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last issued its quarterly earnings data on Monday, May 11th. The company reported ($0.04) EPS for the quarter, beating the consensus estimate of ($0.05) by $0.01. The firm had revenue of $4.40 million during the quarter, compared to the consensus estimate of $4.09 million. Rigetti Computing had a negative net margin of 3,111.92% and a negative return on equity of 14.91%. The company's quarterly revenue was up 198.9% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.05) earnings per share. On average, equities research analysts forecast that Rigetti Computing, Inc. will post -0.16 earnings per share for the current year.

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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