Rigetti Computing (NASDAQ:RGTI) Shares Up 3.2% - Here's What Happened

Key Points

• Shares rose 3.2% to $18.27 on Tuesday (midday volume ~24.36M vs. a ~29.69M average) as investors reacted to catalysts including Northland’s bullish view on AI compute demand, reported hardware progress and new government/international contracts, and upcoming management appearances at the Needham conference.
• Fundamentals remain a concern: Rigetti beat EPS but missed revenue ($1.87M vs. $2.33M), reported very large negative margins and is not cash‑flow positive, leaving the stock highly dependent on execution and future revenue ramps.
• Analyst sentiment is mixed (consensus rating "Moderate Buy" with a $30.64 target) while insiders have sold shares and large institutions like Vanguard hold material positions, reflecting both investor interest and near‑term uncertainty.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report)'s stock price shot up 3.2% on Tuesday . The stock traded as high as $18.47 and last traded at $18.27. 24,360,234 shares traded hands during mid-day trading, a decline of 18% from the average session volume of 29,685,768 shares. The stock had previously closed at $17.70.

Key Headlines Impacting Rigetti Computing

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

• Positive Sentiment: Northland reiterates a bullish view and frames rising AI compute demand as a tailwind for quantum players; Street estimates ahead of Q1 show modest revenue expectations (~$4.09M), which has helped lift sentiment. Northland Believes Compute Demand For AI Leading Quantum Industry, Here’s What it Thinks About Rigetti Computing (RGTI)
• Positive Sentiment: Rigetti’s hardware roadmap and reported progress toward higher‑qubit systems, plus recent international/government contracts, are reshaping the investment narrative toward an integrated quantum‑provider story. This execution news is cited as a reason for improved analyst expectations. Will Quantum Hardware Milestones and Global Contracts Reshape Rigetti Computing's (RGTI) Investment Narrative?
• Positive Sentiment: Management visibility: CEO Subodh Kulkarni (and CFO Jeff Bertelsen) will present at the Needham Technology, Media & Consumer Conference, increasing investor access ahead of earnings. Rigetti Computing to Participate in Fireside Chat at 21st Annual Needham Technology, Media, & Consumer Conference
• Neutral Sentiment: Recent momentum: the stock has seen a strong month and substantial one‑year gains, prompting fresh valuation discussion — investors are weighing growth potential vs. current pricing. Assessing Rigetti Computing (RGTI) Valuation After Recent Share Price Momentum And Ongoing Losses
• Neutral Sentiment: Market context: coverage noting that RGTI has outperformed during recent sessions as broader markets dip — a reminder some moves reflect headline flow and momentum trading as much as fundamentals. Rigetti Computing, Inc. (RGTI) Gains As Market Dips: What You Should Know
• Negative Sentiment: Critical takes: retail/investor commentary (e.g., The Motley Fool) underscores that Rigetti is still early, with a long path to a sustainable, profitable business — a caution for longer‑term investors. Is Rigetti Computing a Buy?
• Negative Sentiment: Fundamental headwinds remain: recent quarterly results showed an EPS beat but a revenue miss and very large negative margins/ongoing losses — the company is not yet cash‑flow positive, which leaves valuation sensitive to execution and future revenue ramps.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on RGTI. Wall Street Zen downgraded shares of Rigetti Computing from a "hold" rating to a "sell" rating in a report on Sunday, April 26th. Wedbush lifted their target price on shares of Rigetti Computing from $35.00 to $40.00 and gave the company an "outperform" rating in a report on Wednesday, January 21st. Needham & Company LLC lowered their target price on shares of Rigetti Computing from $51.00 to $31.00 and set a "buy" rating on the stock in a report on Thursday, March 5th. B. Riley Financial raised shares of Rigetti Computing from a "neutral" rating to a "buy" rating and set a $35.00 target price on the stock in a report on Thursday, January 22nd. Finally, Rosenblatt Securities reaffirmed a "buy" rating and issued a $40.00 target price on shares of Rigetti Computing in a report on Thursday, March 5th. Eight analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Rigetti Computing presently has an average rating of "Moderate Buy" and a consensus price target of $30.64.

Rigetti Computing Price Performance

The company's 50 day moving average is $16.25 and its 200 day moving average is $23.02. The stock has a market cap of $6.07 billion, a price-to-earnings ratio of -26.87 and a beta of 1.79.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last announced its quarterly earnings data on Wednesday, March 4th. The company reported ($0.03) EPS for the quarter, beating the consensus estimate of ($0.05) by $0.02. Rigetti Computing had a negative net margin of 3,111.92% and a negative return on equity of 14.91%. The firm had revenue of $1.87 million during the quarter, compared to analysts' expectations of $2.33 million. The business's revenue for the quarter was down 17.9% compared to the same quarter last year. Sell-side analysts predict that Rigetti Computing, Inc. will post -0.16 earnings per share for the current year.

Insider Activity

In related news, CFO Jeffrey A. Bertelsen sold 4,270 shares of the firm's stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $17.52, for a total value of $74,810.40. Following the completion of the sale, the chief financial officer owned 175,609 shares in the company, valued at $3,076,669.68. This trade represents a 2.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CTO David Rivas sold 36,719 shares of the firm's stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $17.52, for a total transaction of $643,316.88. Following the completion of the sale, the chief technology officer owned 651,914 shares of the company's stock, valued at $11,421,533.28. This trade represents a 5.33% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.60% of the stock is owned by company insiders.

Institutional Trading of Rigetti Computing

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its position in Rigetti Computing by 40.4% during the third quarter. Vanguard Group Inc. now owns 32,046,477 shares of the company's stock worth $954,665,000 after acquiring an additional 9,228,888 shares during the last quarter. Victory Capital Management Inc. raised its position in Rigetti Computing by 1,632.5% during the fourth quarter. Victory Capital Management Inc. now owns 2,571,289 shares of the company's stock worth $56,954,000 after acquiring an additional 2,422,873 shares during the last quarter. Ameriprise Financial Inc. acquired a new position in Rigetti Computing during the second quarter worth about $21,887,000. Norges Bank acquired a new position in Rigetti Computing during the fourth quarter worth about $38,889,000. Finally, Clear Street Group Inc. acquired a new position in Rigetti Computing during the third quarter worth about $47,752,000. Institutional investors and hedge funds own 35.38% of the company's stock.

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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