Rigetti Computing (NASDAQ:RGTI) Stock Price Down 4.7% - Here's What Happened

Key Points

• Rigetti Computing shares fell 4.7% in Friday trading, touching an intraday low of $14.14 after closing at $14.85 the prior day, with volume coming in below average.
• Despite the pullback, analyst sentiment remains fairly positive: the stock carries a “Moderate Buy” consensus with a $32 average price target, though some firms recently trimmed targets or adjusted ratings.
• The company’s latest earnings showed revenue growth of 198.9% year over year to $4.4 million and an EPS loss that was slightly better than expected, while insider sales and ongoing losses remain notable concerns.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report)'s stock price fell 4.7% during mid-day trading on Friday . The company traded as low as $14.14 and last traded at $14.15. Approximately 15,763,726 shares traded hands during mid-day trading, a decline of 54% from the average daily volume of 34,093,953 shares. The stock had previously closed at $14.85.

Analyst Ratings Changes

A number of research firms have recently commented on RGTI. Rosenblatt Securities reiterated a "buy" rating and set a $40.00 target price on shares of Rigetti Computing in a research note on Thursday, June 11th. Weiss Ratings upgraded shares of Rigetti Computing from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday. Mizuho decreased their price objective on shares of Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating for the company in a report on Tuesday, May 12th. Wall Street Zen raised shares of Rigetti Computing from a "sell" rating to a "hold" rating in a research report on Monday. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $31.00 price objective on shares of Rigetti Computing in a research report on Tuesday, May 12th. Seven investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $32.00.

Rigetti Computing Stock Performance

The firm has a market capitalization of $4.70 billion, a PE ratio of -16.26 and a beta of 1.95. The business's 50 day moving average is $19.73 and its two-hundred day moving average is $18.75.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last posted its earnings results on Monday, May 11th. The company reported ($0.04) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.05) by $0.01. Rigetti Computing had a negative return on equity of 10.40% and a negative net margin of 2,789.71%.The firm had revenue of $4.40 million for the quarter, compared to the consensus estimate of $4.09 million. During the same quarter in the prior year, the business posted ($0.05) earnings per share. The business's quarterly revenue was up 198.9% on a year-over-year basis. As a group, equities research analysts predict that Rigetti Computing, Inc. will post -0.22 EPS for the current year.

Insider Buying and Selling

In other Rigetti Computing news, CTO David Rivas sold 499,328 shares of Rigetti Computing stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $25.40, for a total transaction of $12,682,931.20. Following the completion of the transaction, the chief technology officer owned 325,945 shares of the company's stock, valued at $8,279,003. The trade was a 60.50% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Jeffrey A. Bertelsen sold 3,682 shares of the company's stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $22.95, for a total value of $84,501.90. Following the sale, the chief financial officer owned 171,927 shares in the company, valued at approximately $3,945,724.65. This represents a 2.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 728,901 shares of company stock valued at $17,546,343. Corporate insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On Rigetti Computing

Hedge funds have recently bought and sold shares of the company. Handelsbanken Fonder AB increased its holdings in Rigetti Computing by 21.0% during the 2nd quarter. Handelsbanken Fonder AB now owns 122,500 shares of the company's stock worth $2,367,000 after acquiring an additional 21,300 shares during the period. Valeo Financial Advisors LLC bought a new position in Rigetti Computing in the 2nd quarter valued at $197,000. NewEdge Advisors LLC grew its position in shares of Rigetti Computing by 6.7% during the 1st quarter. NewEdge Advisors LLC now owns 65,694 shares of the company's stock valued at $922,000 after purchasing an additional 4,149 shares in the last quarter. Janus Henderson Group PLC grew its position in shares of Rigetti Computing by 7.3% during the 1st quarter. Janus Henderson Group PLC now owns 199,987 shares of the company's stock valued at $2,809,000 after purchasing an additional 13,666 shares in the last quarter. Finally, Encore Global Management LP bought a new position in shares of Rigetti Computing in the first quarter worth $1,685,000. Hedge funds and other institutional investors 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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