Rigetti Computing (NASDAQ:RGTI) Stock Price Up 5.5% - What's Next?

Key Points

• Rigetti Computing shares rose 5.5% on Thursday, trading as high as $21.48 after closing at $20.25 the prior day. Volume was slightly below average, with about 35.5 million shares traded.
• Analyst sentiment remains mixed but generally positive: the stock has a consensus rating of “Moderate Buy” with an average price target of $29.18. Recent moves included Benchmark cutting its target to $25 while Needham reiterated a $31 target and buy rating.
• The company’s latest earnings beat expectations, posting a smaller-than-expected loss of $0.04 per share and revenue of $4.4 million, up 198.9% year over year. However, insiders have recently sold shares and the company still expects a loss of $0.22 per share for the current fiscal year.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) rose 5.5% on Thursday . The stock traded as high as $21.48 and last traded at $21.36. Approximately 35,539,853 shares were traded during mid-day trading, a decline of 1% from the average daily volume of 35,970,039 shares. The stock had previously closed at $20.25.

Analysts Set New Price Targets

Several research firms have recently issued reports on RGTI. Benchmark reduced their target price on Rigetti Computing from $35.00 to $25.00 and set a "buy" rating on the stock in a report on Friday, March 20th. Wall Street Zen raised shares of Rigetti Computing from a "sell" rating to a "hold" rating in a research report on Saturday, May 23rd. Needham & Company LLC reiterated a "buy" rating and set a $31.00 price objective on shares of Rigetti Computing in a research note on Tuesday, May 12th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Rigetti Computing in a research note on Tuesday, June 2nd. Finally, Northland Securities initiated coverage on shares of Rigetti Computing in a research report on Monday, April 20th. They issued a "market perform" rating and a $20.00 target price for the company. Eight equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $29.18.

Rigetti Computing Stock Performance

The company has a market cap of $7.10 billion, a price-to-earnings ratio of -24.55 and a beta of 1.88. The company has a fifty day moving average of $19.78 and a two-hundred day moving average of $20.09.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last released its quarterly earnings data on Monday, May 11th. The company reported ($0.04) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.01. The company had revenue of $4.40 million during the quarter, compared to the consensus estimate of $4.09 million. Rigetti Computing had a negative return on equity of 10.40% and a negative net margin of 2,789.71%.The firm's revenue was up 198.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.05) earnings per share. Equities analysts expect that Rigetti Computing, Inc. will post -0.22 EPS for the current fiscal year.

Insider Buying and Selling at Rigetti Computing

In other news, CFO Jeffrey A. Bertelsen sold 3,682 shares of the 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 sale, 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 ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Ray O. Johnson sold 122,188 shares of the firm's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $21.30, for a total value of $2,602,604.40. Following the transaction, the director owned 171,273 shares of the company's stock, valued at $3,648,114.90. This trade represents a 41.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 643,957 shares of company stock worth $15,800,744. Insiders own 1.60% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Royal Bank of Canada lifted its position in shares of Rigetti Computing by 106.2% in the 1st quarter. Royal Bank of Canada now owns 220,701 shares of the company's stock worth $1,748,000 after purchasing an additional 113,644 shares during the period. AQR Capital Management LLC increased its position in shares of Rigetti Computing by 138.9% during the first quarter. AQR Capital Management LLC now owns 81,047 shares of the company's stock worth $642,000 after buying an additional 47,115 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Rigetti Computing by 25.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 112,409 shares of the company's stock worth $890,000 after buying an additional 22,770 shares during the period. NewEdge Advisors LLC raised its stake in Rigetti Computing by 197.8% during the first quarter. NewEdge Advisors LLC now owns 25,592 shares of the company's stock worth $203,000 after buying an additional 16,998 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new position in Rigetti Computing in the first quarter valued at $3,115,000. Institutional investors own 35.38% of the company's stock.

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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