Rigetti Computing (NASDAQ:RGTI) Stock Price Down 1.8% on Insider Selling

Key Points

• Rigetti Computing shares fell 1.8% after insider selling, with the stock trading as low as $23.62 amid heavier-than-normal volume of about 56 million shares.
• CTO David Rivas and CFO Jeffrey A. Bertelsen both sold shares on May 22, but the company said the transactions were to cover tax withholding tied to vesting equity awards.
• Despite the pullback, analysts remain broadly positive: Rigetti has a Moderate Buy consensus rating and an average price target of $29.18, while the company recently reported quarterly revenue growth of 198.9% year over year.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report)'s share price dropped 1.8% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $23.62 and last traded at $24.62. Approximately 56,007,682 shares changed hands during trading, an increase of 66% from the average daily volume of 33,660,590 shares. The stock had previously closed at $25.07.

Specifically, 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 completion of the sale, the chief technology officer directly owned 713,155 shares of the company's stock, valued at $16,374,038.80. This represents a 2.56% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jeffrey A. Bertelsen sold 3,682 shares of Rigetti Computing stock in a transaction that occurred on Friday, May 22nd. The shares were 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 owned 171,927 shares in the company, valued at $3,945,724.65. This trade represents a 2.10% decrease in their ownership of the stock. 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.

Wall Street Analyst Weigh In

Several research firms have recently commented on RGTI. Needham & Company LLC restated a "buy" rating and set a $31.00 price target on shares of Rigetti Computing in a research note on Tuesday, May 12th. Wall Street Zen raised shares of Rigetti Computing from a "sell" rating to a "hold" rating in a research note on Saturday. Northland Securities began coverage on shares of Rigetti Computing in a research note on Monday, April 20th. They issued a "market perform" rating and a $20.00 target price for the company. 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. Finally, Benchmark dropped 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. Eight equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $29.18.

Trending Headlines about Rigetti Computing

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

• Positive Sentiment: Rigetti is being viewed as a potential beneficiary of large-scale federal support for quantum computing, with market commentary pointing to hundreds of millions of dollars in government backing for domestic quantum technology and foundry development. Quantum Stocks Just Got a Lifeline—Who Benefits Most? (RGTI)
• Positive Sentiment: Investor interest remains elevated, with unusually heavy call option buying suggesting traders are positioning for more upside in RGTI. Rigetti Computing Sees Unusually High Options Volume NASDAQ: RGTI
• Neutral Sentiment: Rigetti is drawing a lot of speculative attention across financial media, including coverage of the quantum sector’s “commercial breakout” and the broader IPO boom, which can keep the stock volatile. Quantum Computing's Commercial Breakout Has Arrived (RGTI)
• Negative Sentiment: Recent insider sales by CFO Jeffrey Bertelsen and CTO David Rivas may pressure sentiment, even though the company said the transactions were to cover tax withholding tied to equity vesting. Jeffrey Bertelsen Sells 3,682 Shares of Rigetti Computing NASDAQ: RGTI Stock
• Negative Sentiment: A new analysis warns that Rigetti’s high valuation leaves room for downside if commercial growth or execution slows, highlighting the risk in assuming a smooth transition from research to scale. How Low Can RGTI Stock Go?

Rigetti Computing Stock Performance

The company has a market capitalization of $8.18 billion, a PE ratio of -28.30 and a beta of 1.79. The firm's 50-day simple moving average is $17.20 and its 200 day simple moving average is $20.60.

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

Institutional Investors Weigh In On Rigetti Computing

Several institutional investors have recently modified their holdings of RGTI. Vanguard Group Inc. increased its stake 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 purchasing an additional 9,228,888 shares in the last quarter. Victory Capital Management Inc. grew its holdings in Rigetti Computing by 1,632.5% in the fourth quarter. Victory Capital Management Inc. now owns 2,571,289 shares of the company's stock valued at $56,954,000 after purchasing an additional 2,422,873 shares during the last quarter. Ameriprise Financial Inc. purchased a new position in shares of Rigetti Computing in the second quarter valued at $21,887,000. Norges Bank acquired a new position in shares of Rigetti Computing during the 4th quarter worth $38,889,000. Finally, Clear Street Group Inc. purchased a new stake in shares of Rigetti Computing in the 3rd quarter worth about $47,752,000. Hedge funds and other institutional investors 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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