Rigetti Computing (NASDAQ:RGTI) Stock Price Down 8.3% - Here's Why

Key Points

• Shares fell 8.3% mid-day to $16.86 (low $16.50) on about 27.29 million shares traded, roughly 11% below average; the stock trades below its 200‑day moving average and has a market cap of $5.6 billion.
• Analysts are mixed but leaning positive with an average rating of Moderate Buy and an average price target of $30.64, though several firms have recently cut targets while others maintain buy/outperform calls.
• Rigetti reported ($0.03) EPS that beat estimates by $0.02 but revenue fell 17.9% to $1.87 million and the company shows very negative margins; additionally, the CTO and CFO sold shares in March, modestly reducing insider ownership.

Shares of Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) dropped 8.3% during mid-day trading on Thursday . The company traded as low as $16.50 and last traded at $16.86. Approximately 27,286,497 shares changed hands during trading, a decline of 11% from the average daily volume of 30,605,809 shares. The stock had previously closed at $18.38.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. Wall Street Zen raised Rigetti Computing from a "sell" rating to a "hold" rating in a report on Saturday, April 18th. Mizuho lowered their price target on Rigetti Computing from $50.00 to $43.00 and set an "outperform" rating for the company in a report on Thursday, March 5th. Rosenblatt Securities reissued a "buy" rating and issued a $40.00 price target on shares of Rigetti Computing in a report on Thursday, March 5th. Royal Bank Of Canada lowered shares of Rigetti Computing to a "hold" rating in a research note on Thursday, January 22nd. Finally, Needham & Company LLC cut their price target on shares of Rigetti Computing from $51.00 to $31.00 and set a "buy" rating on the stock in a research note on Thursday, March 5th. Eight investment 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 Price Performance

The stock has a market cap of $5.60 billion, a price-to-earnings ratio of -24.79 and a beta of 1.82. The stock has a fifty day moving average of $16.15 and a 200 day moving average of $24.47.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last released its earnings results on Wednesday, March 4th. The company reported ($0.03) EPS for the quarter, topping analysts' consensus estimates of ($0.05) by $0.02. Rigetti Computing had a negative return on equity of 14.91% and a negative net margin of 3,111.92%.The firm had revenue of $1.87 million during the quarter, compared to the consensus estimate of $2.33 million. The company's revenue for the quarter was down 17.9% compared to the same quarter last year. As a group, equities analysts expect that Rigetti Computing, Inc. will post -0.16 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CTO David Rivas sold 36,719 shares of the stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $17.52, for a total value 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Jeffrey A. Bertelsen sold 4,270 shares of the business'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 completion of the transaction, the chief financial officer directly owned 175,609 shares of the company's stock, valued at approximately $3,076,669.68. This trade represents a 2.37% decrease in their position. The SEC filing for this sale provides additional information. 1.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Rigetti Computing

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Rothschild Investment LLC grew its stake in shares of Rigetti Computing by 26.1% during the 3rd quarter. Rothschild Investment LLC now owns 1,665 shares of the company's stock worth $50,000 after purchasing an additional 345 shares during the period. Trust Co. of Toledo NA OH raised its position in shares of Rigetti Computing by 1.7% in the third quarter. Trust Co. of Toledo NA OH now owns 21,178 shares of the company's stock worth $631,000 after acquiring an additional 357 shares during the period. Prospera Financial Services Inc raised its position in shares of Rigetti Computing by 1.0% in the third quarter. Prospera Financial Services Inc now owns 41,789 shares of the company's stock worth $1,245,000 after acquiring an additional 419 shares during the period. Kestra Private Wealth Services LLC raised its position in shares of Rigetti Computing by 1.4% in the fourth quarter. Kestra Private Wealth Services LLC now owns 37,534 shares of the company's stock worth $831,000 after acquiring an additional 535 shares during the period. Finally, MAI Capital Management raised its position in shares of Rigetti Computing by 17.7% in the third quarter. MAI Capital Management now owns 3,763 shares of the company's stock worth $112,000 after acquiring an additional 566 shares during the period. Institutional investors and hedge funds 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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