Rigetti Computing (NASDAQ:RGTI) Shares Up 1.8% - Still a Buy?

Key Points

• Rigetti shares rose 1.8% to $18.42, while trading volume was roughly half its average. The stock has a $6.12 billion market capitalization and trades well below analysts’ average target price of $30.67.
• The company is advancing its quantum-computing roadmap, including a 108-qubit system and a longer-term goal of approximately 1,000 qubits. Management also cited improving system fidelity, potential U.S. government funding, and expanding demand from government, academic, and commercial customers.
• Despite 185% second-quarter revenue growth to $5.14 million, Rigetti remains heavily unprofitable, reporting a negative net margin of 2,189.54% and negative EPS of $0.05. Analyst sentiment is generally positive at “Moderate Buy,” but insider selling, intense competition, and ongoing commercialization risks remain concerns.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) shot up 1.8% on Wednesday . The stock traded as high as $18.67 and last traded at $18.42. Approximately 16,619,150 shares were traded during mid-day trading, a decline of 50% from the average daily volume of 33,029,586 shares. The stock had previously closed at $18.09.

More Rigetti Computing News

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

• Positive Sentiment: Rigetti is expanding global quantum-computing deployments, progressing its 108-qubit system and targeting approximately 1,000 qubits over time. The roadmap could support broader commercial adoption and improve investor confidence in the company’s technology execution. Rigetti Advances Quantum Roadmap With Strategic Global Expansion
• Positive Sentiment: Management’s second-quarter commentary highlighted efforts to improve Cepheus system fidelity and potential support from U.S. government funding. Demand is reportedly expanding among government, academic and commercial customers, which could strengthen Rigetti’s long-term revenue opportunity. RGTI Q2 Earnings Call Focuses on Fidelity and Government Support
• Positive Sentiment: Analyst coverage cited a $32.00 consensus price target, implying that some analysts see meaningful upside from Rigetti’s recent trading levels. However, target prices are estimates rather than guarantees. Rigetti Receives $32.00 Consensus Target Price
• Neutral Sentiment: Comparisons with IonQ and D-Wave place Rigetti’s roadmap in the broader quantum-computing investment race. The discussion may attract attention to RGTI, but it also underscores intense competition across the sector. IonQ, D-Wave or Rigetti: Which Quantum Stock Is the Best Buy After Q2?
• Negative Sentiment: Despite reported second-quarter revenue growth of 185%, coverage continues to flag substantial losses and uneven demand. Rigetti’s negative earnings and net margins indicate that commercialization remains early and execution risk is high. Is Rigetti Stock a Buy or Hold After Its Q2 Earnings Report?

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on RGTI shares. Wall Street Zen cut shares of Rigetti Computing from a "hold" rating to a "sell" rating in a research report on Saturday. Weiss Ratings upgraded shares of Rigetti Computing from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, July 21st. Mizuho reduced their target price on Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating on the stock in a report on Tuesday, May 12th. Wedbush initiated coverage on Rigetti Computing in a research note on Monday, August 3rd. They issued an "outperform" rating and a $40.00 target price for the company. Finally, Jefferies Financial Group reaffirmed a "hold" rating and issued a $18.00 price target on shares of Rigetti Computing in a research note on Friday, August 7th. Seven investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $30.67.

Rigetti Computing Stock Up 1.8%

The stock's fifty day simple moving average is $17.94 and its two-hundred day simple moving average is $17.92. The firm has a market cap of $6.12 billion, a PE ratio of -20.47 and a beta of 1.99.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.05) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.05). Rigetti Computing had a negative net margin of 2,189.54% and a negative return on equity of 17.82%. The firm had revenue of $5.14 million during the quarter, compared to analyst estimates of $5.09 million. On average, equities research analysts anticipate that Rigetti Computing, Inc. will post -0.22 earnings per share for the current fiscal year.

Insider Buying and Selling at Rigetti Computing

In other news, CTO David Rivas sold 499,328 shares of the firm's stock in a transaction on Friday, May 29th. The stock was sold at an average price of $25.40, for a total transaction 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 $8,279,003. This trade represents 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 available through the SEC website. Also, CFO Jeffrey A. Bertelsen sold 3,682 shares of Rigetti Computing stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $22.95, for a total value of $84,501.90. Following the completion of the transaction, the chief financial officer directly owned 171,927 shares of the company's stock, valued at approximately $3,945,724.65. This represents a 2.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 728,901 shares of company stock worth $17,546,343. 1.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of RGTI. Clear Street Group Inc. lifted its position in Rigetti Computing by 71.1% during the fourth 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 period. Patriot Financial Group Insurance Agency LLC grew its holdings in shares of Rigetti Computing by 105.3% in the first quarter. Patriot Financial Group Insurance Agency LLC now owns 123,460 shares of the company's stock worth $1,733,000 after acquiring an additional 63,331 shares during the period. Intech Investment Management LLC increased its position in Rigetti Computing by 66.3% during the fourth quarter. Intech Investment Management LLC now owns 120,260 shares of the company's stock valued at $2,664,000 after acquiring an additional 47,935 shares during the last quarter. Spear Advisors LLC purchased a new stake in Rigetti Computing during the fourth quarter valued at $2,062,000. Finally, Eurizon Capital SGR S.p.A. bought a new position in Rigetti Computing in the fourth quarter valued at about $4,937,000. 35.38% of the stock is 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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