Rigetti Computing (NASDAQ:RGTI) Stock Price Down 3.2% - Here's Why

Key Points

• Rigetti shares fell about 3.2% on Wednesday to roughly $16.43 (intraday low $15.75) on volume of ~32.6 million shares, roughly in line with average trading volume.
• Analysts are broadly positive with a consensus rating of "Moderate Buy" and an average price target of about $32.60, with individual targets ranging up to $40 and a mix of 8 Buys, 2 Holds and 1 Sell.
• Fundamentals remain strained: market cap ~$5.42 billion, last quarter EPS of ($0.03) (beat estimates), revenue just $1.95 million (down 18% YoY) and a very large negative net margin, indicating the company is still unprofitable.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report)'s share price dropped 3.2% during trading on Wednesday . The company traded as low as $15.75 and last traded at $16.43. Approximately 32,628,513 shares were traded during trading, an increase of 0% from the average daily volume of 32,604,150 shares. The stock had previously closed at $16.97.

Analysts Set New Price Targets

Several equities analysts recently commented on RGTI shares. B. Riley Financial upgraded Rigetti Computing from a "neutral" rating to a "buy" rating and set a $35.00 target price for the company in a research note on Thursday, January 22nd. Alliance Global Partners reaffirmed a "buy" rating on shares of Rigetti Computing in a report on Tuesday, November 11th. Wedbush lifted their price target on shares of Rigetti Computing from $35.00 to $40.00 and gave the stock an "outperform" rating in a research note on Wednesday, January 21st. Jefferies Financial Group started coverage on Rigetti Computing in a research note on Tuesday, December 16th. They issued a "hold" rating and a $30.00 price target on the stock. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $40.00 price objective on shares of Rigetti Computing in a research note on Wednesday, January 21st. Eight research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $32.60.

Rigetti Computing Price Performance

The business has a fifty day moving average of $23.41 and a 200-day moving average of $25.78. The stock has a market capitalization of $5.42 billion, a price-to-earnings ratio of -12.64 and a beta of 1.69.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last issued its earnings results on Monday, November 10th. The company reported ($0.03) earnings per share for the quarter, topping analysts' consensus estimates of ($0.05) by $0.02. Rigetti Computing had a negative net margin of 4,741.49% and a negative return on equity of 21.98%. The firm had revenue of $1.95 million during the quarter, compared to analysts' expectations of $2.17 million. The firm's revenue was down 18.1% compared to the same quarter last year. As a group, research analysts anticipate that Rigetti Computing, Inc. will post -0.34 EPS for the current year.

Institutional Investors Weigh In On Rigetti Computing

A number of institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. grew its position in Rigetti Computing by 40.4% in 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 in the last quarter. Marex Group plc bought a new stake in Rigetti Computing in the second quarter worth $87,414,000. Ameriprise Financial Inc. acquired a new position in Rigetti Computing during the second quarter worth $21,887,000. Norges Bank bought a new position in Rigetti Computing during the fourth quarter valued at about $38,889,000. Finally, Clear Street Group Inc. acquired a new stake in shares of Rigetti Computing in the third quarter worth about $47,752,000. Institutional investors and hedge funds own 35.38% of the company's stock.

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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