Rigetti Computing (NASDAQ:RGTI) Stock Price Down 6.3% - Here's Why

Key Points

• Rigetti Computing shares fell 6.3% on Tuesday, with the stock trading as low as $23.94 before closing at $24.75, as volume came in below its recent average.
• Despite the pullback, the stock is still drawing support from bullish catalysts, including reported federal funding for U.S. quantum companies and unusually heavy call options buying in RGTI.
• Wall Street remains generally constructive: analysts rate Rigetti Moderate Buy on average, and the company recently beat earnings and revenue estimates, even though it remains unprofitable.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) shares traded down 6.3% during trading on Tuesday . The company traded as low as $23.94 and last traded at $24.75. 26,303,250 shares were traded during mid-day trading, a decline of 20% from the average session volume of 32,762,131 shares. The stock had previously closed at $26.42.

Trending Headlines about Rigetti Computing

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

• Positive Sentiment: The federal government reportedly plans to provide hundreds of millions of dollars to quantum companies to support domestic foundry and technology development, which could benefit Rigetti as a U.S.-based quantum computing player. Quantum Stocks Just Got a Lifeline—Who Benefits Most? (RGTI)
• Positive Sentiment: Options activity spiked sharply, with unusually heavy call buying in RGTI, suggesting traders are positioning for continued upside or volatility. Rigetti Computing Sees Unusually High Options Volume NASDAQ: RGTI
• Positive Sentiment: News that Rigetti and other quantum names posted strong recent gains, along with coverage of a refreshed IPO market for quantum-computing companies, is adding momentum to the sector and keeping investor attention on RGTI. Honeywell-Backed Quantinuum Seeks to Raise $1.05 Billion in IPO
• Neutral Sentiment: Rigetti continues to draw heavy online search interest, reflecting elevated speculation and attention rather than a direct fundamental catalyst. Investors Heavily Search Rigetti Computing, Inc. (RGTI): Here is What You Need to Know
• Negative Sentiment: After last week’s sharp double-digit gains, some of today’s weakness may simply reflect profit-taking and a pause following the latest surge. BB, SIDU, RGTI Stocks Lead Last Week’s Wildest Upswings: Here's What Happened

Wall Street Analysts Forecast Growth

RGTI has been the topic of a number of recent analyst reports. Rosenblatt Securities reaffirmed a "buy" rating and issued a $40.00 target price on shares of Rigetti Computing in a research report on Thursday, March 5th. TD Cowen cut Rigetti Computing from a "buy" rating to a "hold" rating in a research report on Thursday, February 12th. Benchmark cut their price target on Rigetti Computing from $35.00 to $25.00 and set a "buy" rating on the stock in a research report on Friday, March 20th. Needham & Company LLC reiterated a "buy" rating and issued a $31.00 price target on shares of Rigetti Computing in a research report on Tuesday, May 12th. Finally, 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 price objective on the stock. Eight 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. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $29.18.

Rigetti Computing Price Performance

The stock has a market cap of $8.25 billion, a PE ratio of -28.56 and a beta of 1.79. The company has a 50-day simple moving average of $17.03 and a 200-day simple moving average of $20.69.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last released its quarterly earnings data on Monday, May 11th. The company reported ($0.04) EPS for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $4.09 million. During the same quarter in the previous year, the firm earned ($0.05) earnings per share. The firm's revenue was up 198.9% on a year-over-year basis. On average, equities analysts expect that Rigetti Computing, Inc. will post -0.19 EPS for the current fiscal year.

Insider Activity at Rigetti Computing

In other Rigetti Computing news, CTO David Rivas sold 36,719 shares of the company'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 $643,316.88. Following the transaction, the chief technology officer directly owned 651,914 shares in the company, valued at approximately $11,421,533.28. This represents a 5.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Jeffrey A. Bertelsen sold 4,270 shares of the firm's stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $17.52, for a total value of $74,810.40. Following the sale, 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 own 1.60% of the company's stock.

Institutional Investors Weigh In On Rigetti Computing

A number of institutional investors have recently bought and sold shares of RGTI. Vanguard Group Inc. lifted its holdings in Rigetti Computing by 12.2% in the 4th quarter. Vanguard Group Inc. now owns 35,970,648 shares of the company's stock worth $796,750,000 after buying an additional 3,924,171 shares in the last quarter. State Street Corp boosted its holdings in shares of Rigetti Computing by 12.0% in the second quarter. State Street Corp now owns 8,853,006 shares of the company's stock worth $104,997,000 after buying an additional 946,850 shares during the period. Geode Capital Management LLC boosted its position in shares of Rigetti Computing by 2.6% in the fourth quarter. Geode Capital Management LLC now owns 7,879,325 shares of the company's stock worth $174,930,000 after buying an additional 196,891 shares during the period. UBS Group AG lifted its position in shares of Rigetti Computing by 90.9% in the third quarter. UBS Group AG now owns 3,081,174 shares of the company's stock worth $91,788,000 after purchasing an additional 1,467,483 shares in the last quarter. Finally, Northern Trust Corp raised its holdings in shares of Rigetti Computing by 16.3% during the third quarter. Northern Trust Corp now owns 2,846,095 shares of the company's stock worth $84,785,000 after acquiring an additional 397,905 shares in the last quarter. 35.38% of the stock is currently owned by hedge funds and other institutional investors.

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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