Rigetti Computing (NASDAQ:RGTI) Stock Price Down 7.1% - Time to Sell?

Key Points

• Shares fell 7.1% to $18.25 on Tuesday with ~35.7 million shares traded (up 17% vs. average), after a prior close of $19.64.
• Analyst sentiment is mixed but overall positive — MarketBeat shows an average rating of "Moderate Buy" with an average target of $30.64, including Wedbush raising its target to $40 (8 Buys, 4 Holds, 1 Sell).
• Fundamentals remain weak: quarterly EPS of -$0.03 beat estimates but revenue fell 17.9% y/y to $1.87M and the company is still unprofitable (extremely negative net margin); meanwhile the CTO and CFO disclosed stock sales.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) dropped 7.1% during mid-day trading on Tuesday . The company traded as low as $18.16 and last traded at $18.25. Approximately 35,722,945 shares changed hands during mid-day trading, an increase of 17% from the average daily volume of 30,600,850 shares. The stock had previously closed at $19.64.

Analyst Ratings Changes

RGTI has been the subject of a number of research reports. Wedbush raised their price objective on shares of Rigetti Computing from $35.00 to $40.00 and gave the company an "outperform" rating in a report on Wednesday, January 21st. Wall Street Zen upgraded shares of Rigetti Computing from a "sell" rating to a "hold" rating in a report on Saturday. Royal Bank Of Canada lowered shares of Rigetti Computing to a "hold" rating in a report on Thursday, January 22nd. Weiss Ratings reiterated a "sell (d-)" rating on shares of Rigetti Computing in a report on Monday, December 29th. Finally, Northland Securities initiated coverage on shares of Rigetti Computing in a report on Monday. They issued a "market perform" rating and a $20.00 price objective for the company. Eight analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Rigetti Computing has an average rating of "Moderate Buy" and an average target price of $30.64.

Rigetti Computing Stock Performance

The firm's fifty day simple moving average is $16.09 and its 200-day simple moving average is $24.67. The stock has a market cap of $6.06 billion, a P/E ratio of -26.84 and a beta of 1.82.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last released its quarterly earnings results on Wednesday, March 4th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.05) by $0.02. Rigetti Computing had a negative net margin of 3,111.92% and a negative return on equity of 14.91%. The firm had revenue of $1.87 million during the quarter, compared to analyst estimates of $2.33 million. The business's revenue was down 17.9% on a year-over-year basis. Analysts predict that Rigetti Computing, Inc. will post -0.17 earnings per share for the current fiscal year.

Insider Activity

In related news, CTO David Rivas sold 36,719 shares of the company's stock in a transaction dated Tuesday, March 10th. The stock was sold at an average price of $17.52, for a total transaction of $643,316.88. Following the sale, the chief technology officer owned 651,914 shares in the company, valued at $11,421,533.28. This represents a 5.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Jeffrey A. Bertelsen sold 4,270 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 $74,810.40. Following the sale, the chief financial officer owned 175,609 shares in the company, valued at approximately $3,076,669.68. The trade was a 2.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of RGTI. Vanguard Group Inc. boosted its stake in Rigetti Computing by 40.4% during 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. Victory Capital Management Inc. boosted its stake in Rigetti Computing by 1,632.5% during the fourth quarter. Victory Capital Management Inc. now owns 2,571,289 shares of the company's stock worth $56,954,000 after acquiring an additional 2,422,873 shares in the last quarter. Ameriprise Financial Inc. bought 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 worth $38,889,000. Finally, Clear Street Group Inc. bought a new position in Rigetti Computing during the third quarter worth $47,752,000. 35.38% of the stock is owned by 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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