Rigetti Computing (NASDAQ:RGTI) Shares Up 9.8% - Here's Why

Key Points

• Rigetti Computing shares jumped 9.8% on Thursday, with trading volume surging to about 85.3 million shares, far above its average daily volume.
• The move was supported by upbeat commentary around 108-qubit Cepheus-1 rollout, stronger QPU demand, and broader optimism that quantum computing is moving toward commercial use; some investors are also betting on a potential short squeeze.
• Despite the stock’s rally, analyst sentiment remains mixed but constructive, with a Moderate Buy consensus and an average price target of $29.18; recent insider sales by the CFO and CTO were disclosed as tax-withholding transactions tied to equity awards.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report)'s stock price rose 9.8% on Thursday . The stock traded as high as $27.58 and last traded at $27.03. Approximately 85,305,984 shares were traded during mid-day trading, an increase of 150% from the average daily volume of 34,173,219 shares. The stock had previously closed at $24.62.

Rigetti Computing News Summary

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

• Positive Sentiment: Rigetti’s 108-qubit Cepheus-1 rollout and stronger QPU demand are reinforcing optimism that the company can move closer to quantum advantage and eventually grow revenue. Rigetti Computing's 108-Qubit Push Keeps Quantum Advantage Hopes Alive
• Positive Sentiment: Market commentary says Rigetti is benefiting from federal support for domestic quantum technology, and some investors are positioning for a potential short squeeze. This Quantum Computing Stock May Be Closer to a Breakout Than You Think
• Positive Sentiment: Broader coverage argues quantum computing is transitioning from research to utility-scale commercial infrastructure, which supports speculative buying in RGTI. Quantum Computing's Commercial Breakout Has Arrived (RGTI)
• Neutral Sentiment: Insider sales by the CFO and CTO may create some caution, though both were reportedly tied to tax withholding on vested equity awards. David Rivas insider transaction

Wall Street Analyst Weigh In

RGTI has been the topic of several recent analyst reports. Northland Securities initiated coverage on shares of Rigetti Computing in a report on Monday, April 20th. They issued a "market perform" rating and a $20.00 target price on the stock. TD Cowen lowered shares of Rigetti Computing from a "buy" rating to a "hold" rating in a report on Thursday, February 12th. Benchmark reduced their price target on shares of Rigetti Computing from $35.00 to $25.00 and set a "buy" rating on the stock in a research note on Friday, March 20th. Needham & Company LLC reissued a "buy" rating and issued a $31.00 price target on shares of Rigetti Computing in a research note on Tuesday, May 12th. Finally, Mizuho reduced their price target on shares of Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating on the stock in a research note on Tuesday, May 12th. Eight investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Rigetti Computing currently has a consensus rating of "Moderate Buy" and an average price target of $29.18.

Rigetti Computing Stock Performance

The business's 50 day moving average price is $17.37 and its 200-day moving average price is $20.53. The firm has a market capitalization of $8.98 billion, a PE ratio of -31.07 and a beta of 1.79.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last released its quarterly earnings results on Monday, May 11th. The company reported ($0.04) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.05) by $0.01. The business had revenue of $4.40 million for the quarter, compared to the consensus estimate of $4.09 million. Rigetti Computing had a negative net margin of 2,789.71% and a negative return on equity of 10.40%. The business's revenue was up 198.9% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.05) EPS. As a group, analysts anticipate that Rigetti Computing, Inc. will post -0.19 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Jeffrey A. Bertelsen sold 3,682 shares of the company's stock in a transaction that occurred on 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 of the company's stock, valued at $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 is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO David Rivas sold 18,759 shares of the company's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $22.96, for a total transaction of $430,706.64. Following the sale, the chief technology officer directly owned 713,155 shares in the company, valued at approximately $16,374,038.80. The trade was a 2.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 63,430 shares of company stock worth $1,233,336 over the last three months. Insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On Rigetti Computing

Several large investors have recently added to or reduced their stakes in the business. Janus Henderson Group PLC increased its stake in Rigetti Computing by 7.3% during the 1st quarter. Janus Henderson Group PLC now owns 199,987 shares of the company's stock worth $2,809,000 after buying an additional 13,666 shares during the period. Encore Global Management LP purchased a new stake in Rigetti Computing during the 1st quarter worth approximately $1,685,000. Amundi increased its stake in Rigetti Computing by 124.8% during the 1st quarter. Amundi now owns 60,012 shares of the company's stock worth $843,000 after buying an additional 33,317 shares during the period. EverSource Wealth Advisors LLC increased its stake in Rigetti Computing by 31.8% during the 1st quarter. EverSource Wealth Advisors LLC now owns 4,651 shares of the company's stock worth $65,000 after buying an additional 1,121 shares during the period. Finally, California State Teachers Retirement System increased its stake in Rigetti Computing by 22.8% during the 1st quarter. California State Teachers Retirement System now owns 377,955 shares of the company's stock worth $5,306,000 after buying an additional 70,179 shares during the period. 35.38% of the stock is owned by hedge funds and other 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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