Rigetti Computing (NASDAQ:RGTI) Stock Price Down 9% - What's Next?

Key Points

• Rigetti shares fell 9% to $13.22 amid a broader selloff in quantum-computing stocks, as investors reduced exposure to richly valued, loss-making technology companies.
• The company has potential longer-term catalysts, including an expanded Hewlett Packard Enterprise partnership to provide a 9-qubit system for the NSF-backed TangleLab project. Benchmark also initiated coverage with a Buy rating and a $25 price target.
• Despite sector pressure, analysts maintain a consensus “Moderate Buy” rating with an average price target of $32. Rigetti remains unprofitable, while recent insider selling and stronger commercial traction at rival D-Wave may weigh on investor sentiment.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report)'s stock price dropped 9% during trading on Wednesday . The stock traded as low as $13.13 and last traded at $13.22. Approximately 19,750,697 shares traded hands during trading, a decline of 42% from the average session volume of 33,875,160 shares. The stock had previously closed at $14.52.

Key Headlines Impacting Rigetti Computing

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

• Positive Sentiment: Rigetti is expanding its partnership with Hewlett Packard Enterprise to supply a 9-qubit Novera quantum system for TangleLab, a hybrid quantum-classical supercomputer backed by a U.S. National Science Foundation grant. The project could improve Rigetti’s research visibility and provide access to academic and government users. Rigetti Expands HPE Partnership To Build NSF Backed TangleLab Supercomputer
• Positive Sentiment: Benchmark initiated coverage with a Buy rating and a $25 price target, indicating substantial potential upside from recently quoted levels. However, the target is an analyst forecast rather than a change to Rigetti’s fundamentals. Rigetti Computing Coverage by Benchmark Co.
• Neutral Sentiment: Industry research suggests artificial intelligence and cloud-based services could accelerate commercial quantum-computing adoption, offering a longer-term opportunity for Rigetti and its peers. Quantum Computing Stocks: Here's How WisdomTree Sizes Up The Industry
• Negative Sentiment: Quantum stocks, including Rigetti, IonQ and D-Wave, have sold off sharply over the past month as investors reduced exposure to richly valued, loss-making technology companies. This sector-wide risk-off move appears to be the main pressure on RGTI. Quantum Computing Stocks Sector Selloff
• Negative Sentiment: Ahead of earnings, analysts favor D-Wave Quantum over Rigetti because of D-Wave’s record bookings, growing backlog and stronger commercial traction. That comparison may be limiting investor enthusiasm for RGTI. RGTI vs. QBTS Ahead of Q2 Earnings

Analyst Ratings Changes

Several analysts have issued reports on the company. Weiss Ratings upgraded Rigetti Computing from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday, July 21st. Needham & Company LLC restated a "buy" rating and set a $31.00 price target on shares of Rigetti Computing in a research report on Tuesday, May 12th. Rosenblatt Securities reiterated a "buy" rating and issued a $40.00 price target on shares of Rigetti Computing in a report on Thursday, June 11th. Wall Street Zen upgraded Rigetti Computing from a "sell" rating to a "hold" rating in a research report on Monday, July 20th. Finally, Northland Securities initiated coverage on Rigetti Computing in a research report on Monday, April 20th. They issued a "market perform" rating and a $20.00 price target on the stock. Seven analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $32.00.

Rigetti Computing Price Performance

The firm has a market capitalization of $4.39 billion, a P/E ratio of -15.20 and a beta of 1.95. The stock's 50-day simple moving average is $19.60 and its two-hundred day simple moving average is $18.53.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last posted its quarterly earnings results 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 return on equity of 10.40% and a negative net margin of 2,789.71%.The company had revenue of $4.40 million for the quarter, compared to analysts' expectations of $4.09 million. During the same period in the previous year, the firm earned ($0.05) EPS. The firm's revenue was up 198.9% compared to the same quarter last year. On average, analysts forecast that Rigetti Computing, Inc. will post -0.22 earnings per share for the current fiscal year.

Insider Activity at Rigetti Computing

In other Rigetti Computing news, Director Ray O. Johnson sold 84,944 shares of the firm's stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $20.55, for a total value of $1,745,599.20. Following the completion of the sale, the director owned 95,537 shares of the company's stock, valued at $1,963,285.35. This trade represents a 47.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jeffrey A. Bertelsen sold 3,682 shares of the business's stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $22.95, for a total value of $84,501.90. Following the transaction, the chief financial officer owned 171,927 shares of the company's stock, valued at approximately $3,945,724.65. The trade was a 2.10% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 728,901 shares of company stock worth $17,546,343. Company insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On Rigetti Computing

Large investors have recently added to or reduced their stakes in the stock. Kestra Private Wealth Services LLC increased its holdings in shares of Rigetti Computing by 1.4% in the 4th quarter. Kestra Private Wealth Services LLC now owns 37,534 shares of the company's stock valued at $831,000 after acquiring an additional 535 shares during the period. Global Retirement Partners LLC raised its position in shares of Rigetti Computing by 10.2% in the 4th quarter. Global Retirement Partners LLC now owns 6,656 shares of the company's stock valued at $147,000 after purchasing an additional 615 shares during the last quarter. Comerica Bank raised its holdings in shares of Rigetti Computing by 2.1% in the third quarter. Comerica Bank now owns 31,901 shares of the company's stock worth $950,000 after buying an additional 653 shares during the last quarter. Main Management ETF Advisors LLC lifted its position in Rigetti Computing by 1.0% during the 4th quarter. Main Management ETF Advisors LLC now owns 64,206 shares of the company's stock worth $1,422,000 after acquiring an additional 656 shares during the period. Finally, Larson Financial Group LLC lifted its holdings in shares of Rigetti Computing by 138.4% during the fourth quarter. Larson Financial Group LLC now owns 1,218 shares of the company's stock worth $27,000 after purchasing an additional 707 shares during the period. 35.38% of the stock is 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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