Rigetti Computing (NASDAQ:RGTI) Trading 8.5% Higher - What's Next?

Key Points

• Rigetti shares rose 8.5% to $17.94 after second-quarter revenue jumped 185.3% year over year to $5.14 million, slightly beating expectations, helped by Novera system shipments and growing commercial revenue.
• The company reported a $0.05-per-share adjusted loss, while higher research-and-development and administrative expenses continue to pressure profitability. Rigetti ended the quarter with $541.3 million in cash and no debt.
• Analyst sentiment remains broadly positive, with an average “Moderate Buy” rating and $30.67 price target; however, recent insider sales—including a substantial CTO sale—and continued projected full-year losses present risks.

Shares of Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) traded up 8.5% during trading on Friday . The stock traded as high as $17.95 and last traded at $17.94. 29,874,962 shares were traded during mid-day trading, a decline of 10% from the average daily volume of 33,332,988 shares. The stock had previously closed at $16.53.

Trending Headlines about Rigetti Computing

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

• Positive Sentiment: Second-quarter revenue rose 185.3% year over year to $5.14 million, slightly exceeding the approximately $5.09 million consensus estimate. Growth was attributed to shipments of Rigetti’s Novera quantum systems and a broader shift toward commercial revenue. Rigetti Q2 Earnings Miss Estimates on Higher Costs, Revenue Beat
• Positive Sentiment: Investors responded favorably to reports that major quantum-computing orders and Novera shipments are accelerating Rigetti’s commercial mix. The company also highlighted progress on its technology roadmap and improved quantum-fidelity performance. Rigetti Stock Rises as Major Quantum Orders Fuel Growth
• Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating and set a $40 price target, implying substantial upside from recent trading levels. Rigetti ended June with $541.3 million in cash and no debt, providing funding flexibility for research and expansion. Rosenblatt Securities Reaffirms Buy Rating
• Positive Sentiment: A $5 million National Science Foundation-backed hybrid quantum-classical testbed with Hewlett Packard Enterprise and Pittsburgh Supercomputing Center is scheduled to begin construction in September, reinforcing Rigetti’s government and enterprise relationships. Rigetti Expands Hybrid Quantum HPC Push With New NSF Project
• Neutral Sentiment: Rigetti reported an adjusted loss of $0.05 per share. This matched some consensus estimates but missed the Zacks estimate of a $0.03 loss, creating a mixed earnings signal. Rigetti Reports Q2 Loss, Tops Revenue Estimates
• Negative Sentiment: Higher research-and-development and selling, general, and administrative expenses widened losses and continue to weigh on profitability. Analysts also continue to forecast a full-year loss, limiting the stock’s fundamental support.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on RGTI shares. Wedbush began coverage on shares of Rigetti Computing in a research note on Monday. They issued an "outperform" rating and a $40.00 price objective for the company. Wall Street Zen raised Rigetti Computing from a "sell" rating to a "hold" rating in a research report on Monday, July 20th. Rosenblatt Securities reiterated a "buy" rating and set a $40.00 price target on shares of Rigetti Computing in a research note on Friday. Weiss Ratings raised Rigetti Computing from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, July 21st. Finally, Benchmark assumed coverage on Rigetti Computing in a research note on Monday, July 27th. They issued a "buy" rating and a $25.00 price objective on the stock. Seven investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Rigetti Computing has an average rating of "Moderate Buy" and an average price target of $30.67.

Rigetti Computing Price Performance

The company has a market capitalization of $5.96 billion, a P/E ratio of -20.62 and a beta of 1.99. The stock's fifty day simple moving average is $18.43 and its 200-day simple moving average is $18.06.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.05) earnings per share for the quarter, hitting the consensus estimate of ($0.05). Rigetti Computing had a negative return on equity of 10.40% and a negative net margin of 2,789.71%.The business had revenue of $5.14 million during the quarter, compared to analysts' expectations of $5.09 million. On average, research analysts predict that Rigetti Computing, Inc. will post -0.22 earnings per share for the current year.

Insider Transactions at Rigetti Computing

In other Rigetti Computing news, CFO Jeffrey A. Bertelsen sold 3,682 shares of the 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 completion of the sale, the chief financial officer directly owned 171,927 shares of the company's stock, valued at $3,945,724.65. This represents a 2.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO David Rivas sold 499,328 shares of the business's stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $25.40, for a total transaction of $12,682,931.20. Following the transaction, the chief technology officer owned 325,945 shares in the company, valued at approximately $8,279,003. The trade was a 60.50% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 728,901 shares of company stock worth $17,546,343 over the last three months. 1.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rigetti Computing

Several large investors have recently added to or reduced their stakes in RGTI. Kestra Private Wealth Services LLC grew its position 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 valued at $831,000 after acquiring an additional 535 shares during the period. Global Retirement Partners LLC lifted its holdings in shares of Rigetti Computing by 10.2% during the fourth quarter. Global Retirement Partners LLC now owns 6,656 shares of the company's stock valued at $147,000 after acquiring an additional 615 shares during the period. Comerica Bank boosted its stake in shares of Rigetti Computing by 2.1% in the 3rd quarter. Comerica Bank now owns 31,901 shares of the company's stock valued at $950,000 after purchasing an additional 653 shares in the last quarter. Main Management ETF Advisors LLC boosted its stake in shares of Rigetti Computing by 1.0% in the 4th quarter. Main Management ETF Advisors LLC now owns 64,206 shares of the company's stock valued at $1,422,000 after purchasing an additional 656 shares in the last quarter. Finally, Larson Financial Group LLC grew its holdings in shares of Rigetti Computing by 138.4% in the 4th 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 last quarter. Institutional investors and hedge funds 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.

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.

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