Rigetti Computing (NASDAQ:RGTI) Stock Price Up 30.6% - Time to Buy?

Key Points

• Rigetti Computing stock surged 30.6% on Thursday, with heavy trading volume as investors reacted to fresh government funding headlines and broader enthusiasm around quantum-computing stocks.
• The company signed a letter of intent with the U.S. Department of Commerce for up to $100 million in quantum R&D funding, and reports also point to a larger $2 billion White House quantum funding push that could lift the sector.
• Analysts remain split but generally constructive: Rigetti has a Moderate Buy consensus rating and a $29.18 average price target, though some firms have recently downgraded or trimmed targets amid ongoing dilution and profitability concerns.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report)'s stock price rose 30.6% on Thursday . The stock traded as high as $22.10 and last traded at $22.04. Approximately 141,930,565 shares changed hands during mid-day trading, an increase of 361% from the average daily volume of 30,806,242 shares. The stock had previously closed at $16.88.

Rigetti Computing News Summary

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

• Positive Sentiment: Rigetti signed a letter of intent with the U.S. Department of Commerce for up to $100 million in funding to accelerate quantum R&D, signaling strong government support and a potential catalyst for faster development. Rigetti Signs Letter of Intent with U.S. Government for Quantum Computing Research
• Positive Sentiment: Multiple reports say the White House is advancing a broader $2 billion quantum funding push across several companies, lifting the entire quantum-computing group and adding momentum to RGTI shares. Wall Street Lunch: Washington Advances Quantum Race With $2B CHIPS Funding
• Positive Sentiment: Investors are also focusing on the possibility that the funding improves Rigetti’s cash position and reduces near-term financing pressure, which could support the stock beyond today’s news flow. Why Rigetti Computing Stock Is Rocketing Higher Today
• Neutral Sentiment: Coverage notes that the government deal includes a possible equity stake, which may help fund development but could also add dilution risk if finalized. IBM, D-Wave, Rigetti, GlobalFoundries confirm proposed US quantum funding awards

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. Wedbush upped their price objective on shares of Rigetti Computing from $35.00 to $40.00 and gave the stock an "outperform" rating in a research report on Wednesday, January 21st. Wall Street Zen cut shares of Rigetti Computing from a "hold" rating to a "sell" rating in a research note on Sunday, April 26th. Northland Securities started 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 target for the company. Royal Bank Of Canada downgraded shares of Rigetti Computing to a "hold" rating in a report on Thursday, January 22nd. Finally, Benchmark dropped their price objective on shares of Rigetti Computing from $35.00 to $25.00 and set a "buy" rating for the company in a 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 assigned a Sell rating to the company. According to MarketBeat.com, Rigetti Computing currently has a consensus rating of "Moderate Buy" and a consensus price target of $29.18.

Rigetti Computing Stock Performance

The stock has a market capitalization of $7.32 billion, a P/E ratio of -25.33 and a beta of 1.79. The firm has a 50-day moving average price of $16.53 and a 200 day moving average price of $21.00.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last issued its earnings results on Monday, May 11th. The company reported ($0.04) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.05) by $0.01. The business had revenue of $4.40 million during the quarter, compared to analyst estimates of $4.09 million. Rigetti Computing had a negative return on equity of 10.40% and a negative net margin of 2,789.71%.Rigetti Computing's revenue for the quarter was up 198.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.05) earnings per share. On average, equities analysts anticipate that Rigetti Computing, Inc. will post -0.19 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CTO David Rivas sold 36,719 shares of Rigetti Computing 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 transaction, the chief technology officer owned 651,914 shares in the company, valued at $11,421,533.28. This trade represents a 5.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Jeffrey A. Bertelsen sold 4,270 shares of the firm'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 transaction, the chief financial officer directly owned 175,609 shares in the company, valued at $3,076,669.68. This trade represents a 2.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 1.60% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in RGTI. Royal Bank of Canada increased its stake in shares of Rigetti Computing by 106.2% in the first quarter. Royal Bank of Canada now owns 220,701 shares of the company's stock worth $1,748,000 after buying an additional 113,644 shares during the period. AQR Capital Management LLC grew its holdings in Rigetti Computing by 138.9% in the 1st quarter. AQR Capital Management LLC now owns 81,047 shares of the company's stock worth $642,000 after acquiring an additional 47,115 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Rigetti Computing by 25.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 112,409 shares of the company's stock worth $890,000 after acquiring an additional 22,770 shares during the last quarter. NewEdge Advisors LLC grew its holdings in Rigetti Computing by 197.8% in the 1st quarter. NewEdge Advisors LLC now owns 25,592 shares of the company's stock worth $203,000 after acquiring an additional 16,998 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC bought a new stake in Rigetti Computing in the 1st quarter worth $3,115,000. 35.38% of the stock is owned by hedge funds and other 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.