Rigetti Computing (NASDAQ:RGTI) Stock Price Down 8.9% - Here's Why

Key Points

• Rigetti Computing shares fell 8.9% on Wednesday, dropping to as low as $19.02 after closing at $21.28 the prior day, with trading volume slightly below average.
• The decline comes amid mixed sentiment in the quantum computing sector: policy support and positive commentary have helped the group, but analysts also warn that quantum stocks remain expensive and vulnerable to macro pressure.
• Rigetti’s fundamentals remain a mixed bag, with its latest quarter showing better-than-expected EPS and strong revenue growth, but the company is still unprofitable and recent insider sales, including a large director sale, may be weighing on sentiment.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report)'s share price dropped 8.9% during mid-day trading on Wednesday . The stock traded as low as $19.02 and last traded at $19.3880. Approximately 34,560,011 shares changed hands during mid-day trading, a decline of 4% from the average daily volume of 36,070,023 shares. The stock had previously closed at $21.28.

Key Headlines Impacting Rigetti Computing

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

• Positive Sentiment: U.S. executive orders and broader policy support for quantum computing have renewed investor interest in the sector, which could help sentiment toward Rigetti as a pure-play quantum name. Trump Seeks to Boost Quantum Computing With New Executive Orders
• Positive Sentiment: Articles highlighting Rigetti’s cash position, analyst upside, and chiplet momentum suggest the company remains a favored quantum stock for some investors after Quantinuum’s IPO. Rigetti vs. IonQ: Which Quantum Stock Wins After Quantinuum's IPO?
• Neutral Sentiment: Rigetti’s recent earnings beat and strong revenue growth provide a supportive operational backdrop, but the company is still loss-making and the results were from its last reported quarter rather than a new catalyst.
• Negative Sentiment: Director Ray O. Johnson sold 84,944 shares under a pre-arranged trading plan, a move that can still weigh on investor sentiment even if it was not discretionary. Ray Johnson Sells 84,944 Shares of Rigetti Computing NASDAQ: RGTI Stock
• Negative Sentiment: Several analysts and market-commentary pieces warn that quantum stocks, including Rigetti, remain richly valued and vulnerable to macro pressure, which may be limiting upside in the near term. 2 Quantum Stocks That Are a Sell Today Despite Long-Term Promise

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. Weiss Ratings reiterated a "sell (e+)" rating on shares of Rigetti Computing in a research note on Tuesday, June 2nd. Northland Securities began coverage on Rigetti Computing in a research report on Monday, April 20th. They set a "market perform" rating and a $20.00 price objective for the company. Needham & Company LLC reissued a "buy" rating and issued a $31.00 target price on shares of Rigetti Computing in a report on Tuesday, May 12th. Mizuho dropped their target price on Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating on the stock in a research report on Tuesday, May 12th. Finally, Benchmark reduced their price target on shares of Rigetti Computing from $35.00 to $25.00 and set a "buy" rating for the company in a research report on Friday, March 20th. Eight equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $29.18.

Rigetti Computing Stock Down 8.9%

The company has a fifty day simple moving average of $20.34 and a 200-day simple moving average of $19.99. The firm has a market cap of $6.44 billion, a P/E ratio of -22.28 and a beta of 1.88.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last announced its quarterly earnings data on Monday, May 11th. The company reported ($0.04) earnings per share (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 during the quarter, compared to analysts' expectations of $4.09 million. During the same period in the prior year, the company posted ($0.05) earnings per share. The company's revenue for the quarter was up 198.9% compared to the same quarter last year. As a group, research analysts forecast that Rigetti Computing, Inc. will post -0.22 EPS for the current year.

Insider Transactions at Rigetti Computing

In other news, Director Ray O. Johnson sold 84,944 shares of the company's stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $20.55, for a total transaction of $1,745,599.20. Following the sale, the director directly owned 95,537 shares in the company, valued at approximately $1,963,285.35. This represents a 47.07% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jeffrey A. Bertelsen sold 3,682 shares of Rigetti Computing stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $22.95, for a total value of $84,501.90. Following the completion of the transaction, the chief financial officer owned 171,927 shares of the company's stock, valued at approximately $3,945,724.65. This represents a 2.10% decrease in their position. 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. Insiders have sold 728,901 shares of company stock valued at $17,546,343 in the last ninety days. Corporate insiders own 1.60% of the company's stock.

Institutional Trading of Rigetti Computing

Several institutional investors and hedge funds have recently made changes to their positions in RGTI. Kestra Private Wealth Services LLC raised its stake in 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 buying an additional 535 shares in the last quarter. MAI Capital Management boosted its holdings in 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 in the last quarter. Global Retirement Partners LLC boosted its stake in Rigetti Computing by 10.2% in the 4th quarter. Global Retirement Partners LLC now owns 6,656 shares of the company's stock worth $147,000 after purchasing an additional 615 shares in the last quarter. Huntington National Bank boosted its stake in Rigetti Computing by 60.6% in the 3rd quarter. Huntington National Bank now owns 1,688 shares of the company's stock worth $50,000 after purchasing an additional 637 shares in the last quarter. Finally, Comerica Bank grew its position in Rigetti Computing by 2.1% during the 3rd quarter. Comerica Bank now owns 31,901 shares of the company's stock worth $950,000 after purchasing an additional 653 shares during the last quarter. 35.38% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.