Rigetti Computing (NASDAQ:RGTI) Shares Up 12.4% - Time to Buy?

Key Points

• Rigetti shares jumped 12.4% to $14.86 in heavy mid-day trading, though volume was about 30% below the stock’s average session volume.
• The company’s expanded relationship with Hewlett Packard Enterprise, including a planned 9-qubit Novera system, offers commercial validation; Benchmark also initiated coverage with a Buy rating and a $25 price target.
• Investor risks remain significant ahead of earnings: Rigetti is unprofitable, faces broad selling across high-multiple quantum stocks, and insiders have sold $17.5 million of shares over the past three months. Analysts nevertheless maintain a “Moderate Buy” consensus with a $32 average price target.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) shares rose 12.4% on Thursday . The company traded as high as $15.00 and last traded at $14.86. 23,753,381 shares changed hands during mid-day trading, a decline of 30% from the average session volume of 33,809,078 shares. The stock had previously closed at $13.22.

More Rigetti Computing News

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

• Positive Sentiment: Rigetti will supply Hewlett Packard Enterprise with a 9-qubit Novera quantum system for a hybrid quantum-computing initiative. The expanded HPE relationship provides commercial validation and could support future enterprise demand. Rigetti Stock Falls after HPE Quantum Partnership Expansion
• Positive Sentiment: Benchmark has initiated research coverage on Rigetti, potentially improving institutional visibility and investor attention, although the available report does not identify a rating or price target. Rigetti Research Coverage Started at Benchmark
• Neutral Sentiment: Rigetti and other quantum companies are approaching second-quarter earnings. Results could determine whether the recent sector sell-off was excessive; investors are expected to scrutinize Rigetti’s costs and progress toward commercial adoption. Quantum Earnings Could Decide Whether the Sector’s Sell-Off Has Gone Too Far
• Negative Sentiment: Comparisons with Quantum Computing, Inc. favor QUBT because of its photonic-AI strategy, NHanced transaction, lower valuation and greater analyst-implied upside. That relative assessment may divert speculative capital away from RGTI ahead of earnings. QUBT vs. RGTI: Which Quantum Computing Stock Is the Better Pick Now?
• Negative Sentiment: Investor enthusiasm remains constrained by a broad quantum-sector unwind, with high-multiple, pre-profit companies facing heavy selling. D-Wave’s record bookings and commercial traction are also viewed more favorably than Rigetti’s position ahead of results. Quantum Stocks Face Further Selling Pressure

Analyst Ratings Changes

Several analysts have recently commented on the stock. Weiss Ratings upgraded shares of Rigetti Computing from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, July 21st. Needham & Company LLC reaffirmed a "buy" rating and issued a $31.00 target price on shares of Rigetti Computing in a report on Tuesday, May 12th. Rosenblatt Securities reiterated a "buy" rating and issued a $40.00 price target on shares of Rigetti Computing in a research note on Thursday, June 11th. Benchmark began coverage on Rigetti Computing in a report on Monday. They set a "buy" rating and a $25.00 price target on the stock. Finally, Northland Securities assumed coverage on Rigetti Computing in a research report on Monday, April 20th. They issued a "market perform" rating and a $20.00 price objective on the stock. Seven equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $32.00.

Rigetti Computing Stock Performance

The firm has a market capitalization of $4.94 billion, a PE ratio of -17.08 and a beta of 1.95. The company has a fifty day moving average price of $19.53 and a 200-day moving average price of $18.44.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last posted its earnings results on Monday, May 11th. The company reported ($0.04) earnings per share for the quarter, beating analysts' consensus estimates of ($0.05) by $0.01. The firm had revenue of $4.40 million during the quarter, compared to analyst estimates of $4.09 million. Rigetti Computing had a negative net margin of 2,789.71% and a negative return on equity of 10.40%. Rigetti Computing's revenue for the quarter was up 198.9% compared to the same quarter last year. During the same period last year, the firm posted ($0.05) earnings per share. On average, equities analysts predict that Rigetti Computing, Inc. will post -0.22 earnings per share for the current year.

Insider Transactions at Rigetti Computing

In other news, CFO Jeffrey A. Bertelsen sold 3,682 shares of the company's stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $22.95, for a total transaction of $84,501.90. Following the sale, the chief financial officer directly owned 171,927 shares in the company, valued at approximately $3,945,724.65. This represents a 2.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Ray O. Johnson sold 84,944 shares of the stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $20.55, for a total transaction of $1,745,599.20. Following the completion of the transaction, the director directly owned 95,537 shares of the company's stock, valued at approximately $1,963,285.35. The trade was a 47.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 728,901 shares of company stock worth $17,546,343 in the last three months. Insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On Rigetti Computing

Several institutional investors have recently modified their holdings of the stock. Royal Bank of Canada increased its position in shares of Rigetti Computing by 106.2% during the 1st quarter. Royal Bank of Canada now owns 220,701 shares of the company's stock valued at $1,748,000 after purchasing an additional 113,644 shares during the last quarter. AQR Capital Management LLC lifted its position in Rigetti Computing by 138.9% in the first quarter. AQR Capital Management LLC now owns 81,047 shares of the company's stock worth $642,000 after buying an additional 47,115 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Rigetti Computing by 25.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 112,409 shares of the company's stock worth $890,000 after buying an additional 22,770 shares during the last quarter. NewEdge Advisors LLC boosted its stake in Rigetti Computing by 197.8% during the first quarter. NewEdge Advisors LLC now owns 25,592 shares of the company's stock worth $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 purchased a new position in Rigetti Computing during the first quarter worth $3,115,000. 35.38% of the stock is owned by 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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