Rigetti Computing (NASDAQ:RGTI) Shares Down 7.5% - Time to Sell?

Key Points

• Rigetti Computing shares fell 7.5% on Thursday, trading as low as $13.93 after closing at $15.25, on lighter-than-average volume.
• Analyst sentiment is mixed but still mostly positive: the stock has a consensus “Moderate Buy” rating and an average price target of $32.00, though some firms have trimmed targets and Weiss Ratings rates it a sell.
• Recent results showed revenue growth but continued losses, with quarterly revenue up 198.9% year over year to $4.4 million while the company still posted a negative EPS and a steep net margin loss.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) traded down 7.5% during trading on Thursday . The stock traded as low as $13.93 and last traded at $14.10. Approximately 25,510,253 shares traded hands during mid-day trading, a decline of 27% from the average session volume of 34,710,656 shares. The stock had previously closed at $15.25.

Wall Street Analyst Weigh In

A number of research firms have weighed in on RGTI. Mizuho reduced 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. Rosenblatt Securities restated a "buy" rating and issued a $40.00 price objective on shares of Rigetti Computing in a research report on Thursday, June 11th. Needham & Company LLC reaffirmed a "buy" rating and set a $31.00 price objective on shares of Rigetti Computing in a research note on Tuesday, May 12th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Rigetti Computing in a research note on Tuesday, June 2nd. Finally, Northland Securities began coverage on shares of Rigetti Computing in a report on Monday, April 20th. They set a "market perform" rating and a $20.00 target price on the stock. Seven analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $32.00.

Rigetti Computing Stock Down 7.5%

The company has a 50-day moving average of $20.26 and a 200 day moving average of $19.08. The firm has a market capitalization of $4.69 billion, a PE ratio of -16.21 and a beta of 1.95.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last announced its earnings results on Monday, May 11th. The company reported ($0.04) earnings per share for the quarter, topping analysts' consensus estimates of ($0.05) by $0.01. The business had revenue of $4.40 million for the quarter, compared to analyst estimates of $4.09 million. Rigetti Computing had a negative return on equity of 10.40% and a negative net margin of 2,789.71%.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 company earned ($0.05) EPS. As a group, equities analysts anticipate that Rigetti Computing, Inc. will post -0.22 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CTO David Rivas sold 499,328 shares of the company's stock in a transaction on Friday, May 29th. The shares were sold at an average price of $25.40, for a total value of $12,682,931.20. Following the completion of the transaction, the chief technology officer directly owned 325,945 shares in the company, valued at approximately $8,279,003. The trade was a 60.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Ray O. Johnson sold 122,188 shares of the stock in a transaction on Monday, June 8th. The shares were sold at an average price of $21.30, for a total value of $2,602,604.40. Following the completion of the transaction, the director directly owned 171,273 shares in the company, valued at approximately $3,648,114.90. This represents a 41.64% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 728,901 shares of company stock valued at $17,546,343 in the last quarter. Corporate insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On Rigetti Computing

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Clear Street Group Inc. grew its holdings in shares of Rigetti Computing by 71.1% during the 4th quarter. Clear Street Group Inc. now owns 2,743,150 shares of the company's stock valued at $60,761,000 after purchasing an additional 1,140,183 shares during the last quarter. Intech Investment Management LLC lifted its stake in Rigetti Computing by 66.3% in the fourth quarter. Intech Investment Management LLC now owns 120,260 shares of the company's stock worth $2,664,000 after purchasing an additional 47,935 shares during the last quarter. Patriot Financial Group Insurance Agency LLC boosted its position in Rigetti Computing by 105.3% during the first quarter. Patriot Financial Group Insurance Agency LLC now owns 123,460 shares of the company's stock valued at $1,733,000 after buying an additional 63,331 shares during the period. Spear Advisors LLC bought a new position in shares of Rigetti Computing during the fourth quarter valued at about $2,062,000. Finally, Eurizon Capital SGR S.p.A. bought a new position in shares of Rigetti Computing during the fourth quarter valued at about $4,937,000. 35.38% of the stock is currently owned by hedge funds and other institutional investors.

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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