Rigetti Computing (NASDAQ:RGTI) Stock Price Down 10.3% - Here's Why

Key Points

• Rigetti Computing shares fell 10.3% on Wednesday, trading as low as $23.78 after closing at $26.88, while volume jumped to 77.2 million shares — well above the average daily level.
• The stock’s recent pressure comes despite some upbeat quantum-computing headlines, including IBM’s major investment in the sector and a potential up to $100 million in U.S. quantum R&D support for Rigetti.
• Analysts remain mixed: Rigetti has a Moderate Buy consensus with a $29.18 price target, but concerns remain about limited commercial adoption, ongoing losses, and insider selling, including a large recent sale by the CTO.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) fell 10.3% during mid-day trading on Wednesday . The company traded as low as $23.78 and last traded at $24.10. 77,155,625 shares changed hands during trading, an increase of 117% from the average session volume of 35,567,637 shares. The stock had previously closed at $26.88.

More Rigetti Computing News

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

• Positive Sentiment: Rigetti could benefit from increased sector visibility after IBM committed billions to quantum computing, reinforcing investor optimism that the broader market for quantum technology is expanding. What IBM's $10-Billion Quantum Project Means For Smaller Players (RGTI)
• Positive Sentiment: The company also got a boost from news that it may receive up to $100 million in U.S. quantum R&D backing, which could help fund development and address scaling challenges. Rigetti Gains From Potential $100 Million U.S. Quantum R&D Backing
• Neutral Sentiment: Rigetti launched a 108-qubit quantum computer on major cloud platforms and signed new contracts, including one in India, which supports its long-term commercialization story but does not yet change the company’s near-term profitability profile. Rigetti’s CHIPS Act Funding And 108 Qubit Launch Test Investor Patience
• Negative Sentiment: Analyst commentary warned that the stock’s rally may be hard to sustain because Rigetti still faces limited commercial adoption, widening losses, and a rich valuation. Rigetti's Quantum Ambitions Face Valuation Risks: Buy, Hold or Sell?
• Negative Sentiment: Investors are also weighing insider selling, including a large sale by CTO David Rivas, which can add pressure when a stock has already risen sharply. Rigetti Computing (RGTI) Insider Sales Raise Questions after the Stock’s 60% Rally

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on RGTI. Needham & Company LLC reaffirmed a "buy" rating and set a $31.00 price target on shares of Rigetti Computing in a report on Tuesday, May 12th. TD Cowen downgraded Rigetti Computing from a "buy" rating to a "hold" rating in a report on Thursday, February 12th. Benchmark reduced their target price on Rigetti Computing from $35.00 to $25.00 and set a "buy" rating for the company in a report on Friday, March 20th. Wall Street Zen raised Rigetti Computing from a "sell" rating to a "hold" rating in a report on Saturday, May 23rd. Finally, Rosenblatt Securities reissued 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 issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $29.18.

Rigetti Computing Trading Down 10.4%

The firm has a market capitalization of $8.01 billion, a PE ratio of -27.69 and a beta of 1.88. The company has a fifty day moving average price of $17.99 and a two-hundred day moving average price of $20.39.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last issued its quarterly earnings results on Monday, May 11th. The company reported ($0.04) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.01. The firm had revenue of $4.40 million for the quarter, compared to analysts' expectations 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 firm's revenue for the quarter was up 198.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.05) EPS. As a group, equities research analysts predict that Rigetti Computing, Inc. will post -0.21 earnings per share for the current year.

Insider Activity

In related news, CTO David Rivas sold 499,328 shares of the business's stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $25.40, for a total value of $12,682,931.20. Following the transaction, the chief technology officer owned 325,945 shares in the company, valued at $8,279,003. The trade was a 60.50% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CFO Jeffrey A. Bertelsen sold 4,270 shares of the business'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 transaction, 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 position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 562,758 shares of company stock worth $13,916,267 in the last 90 days. 1.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rigetti Computing

Several institutional investors have recently added to or reduced their stakes in RGTI. Vanguard Group Inc. increased its position in Rigetti Computing by 40.4% in the 3rd quarter. Vanguard Group Inc. now owns 32,046,477 shares of the company's stock valued at $954,665,000 after acquiring an additional 9,228,888 shares during the period. Victory Capital Management Inc. increased its position in Rigetti Computing by 1,632.5% during the 4th quarter. Victory Capital Management Inc. now owns 2,571,289 shares of the company's stock worth $56,954,000 after purchasing an additional 2,422,873 shares during the period. Ameriprise Financial Inc. acquired a new position in Rigetti Computing during the 2nd quarter worth approximately $21,887,000. Norges Bank acquired a new position in Rigetti Computing during the 4th quarter worth approximately $38,889,000. Finally, Clear Street Group Inc. acquired a new position in Rigetti Computing during the 3rd quarter worth approximately $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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