Rigetti Computing (NASDAQ:RGTI) Trading Down 1.5% - Time to Sell?

Key Points

• Rigetti shares slipped 1.5% midday to $14.31 on 20.8M shares traded (about 29% below average), and the stock sits below its 50‑day ($16.13) and well under its 200‑day ($25.48) moving averages.
• Analysts are mixed but the consensus view is a Moderate Buy with an average price target of $31.70, even as several firms recently trimmed ratings or targets.
• Fundamentals are stressed — revenue fell 17.9% year‑over‑year, the company has a deeply negative net margin (-3,111.92%) and negative ROE despite a slight EPS beat, and there were notable insider sales by the CFO and CTO that reduced their holdings.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report)'s share price fell 1.5% during mid-day trading on Thursday . The company traded as low as $14.03 and last traded at $14.31. 20,787,557 shares were traded during mid-day trading, a decline of 29% from the average session volume of 29,107,521 shares. The stock had previously closed at $14.53.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on RGTI. TD Cowen cut shares of Rigetti Computing from a "buy" rating to a "hold" rating in a research note on Thursday, February 12th. Needham & Company LLC cut their price objective on shares of Rigetti Computing from $51.00 to $31.00 and set a "buy" rating for the company in a research note on Thursday, March 5th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $40.00 price objective on shares of Rigetti Computing in a research note on Thursday, March 5th. Royal Bank Of Canada cut shares of Rigetti Computing to a "hold" rating in a research note on Thursday, January 22nd. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rigetti Computing in a research note on Monday, December 29th. Eight equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Rigetti Computing presently has a consensus rating of "Moderate Buy" and a consensus price target of $31.70.

Rigetti Computing Trading Down 1.5%

The company has a market capitalization of $4.75 billion, a P/E ratio of -21.04 and a beta of 1.82. The stock's fifty day moving average is $16.13 and its 200 day moving average is $25.48.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last released its quarterly earnings data on Wednesday, March 4th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.05) by $0.02. The firm had revenue of $1.87 million for the quarter, compared to analysts' expectations of $2.33 million. Rigetti Computing had a negative net margin of 3,111.92% and a negative return on equity of 14.91%. The company's revenue was down 17.9% compared to the same quarter last year. On average, analysts expect that Rigetti Computing, Inc. will post -0.34 EPS for the current fiscal year.

Insider Transactions at Rigetti Computing

In other news, CFO Jeffrey A. Bertelsen sold 4,270 shares of Rigetti Computing stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $17.52, for a total value of $74,810.40. Following the sale, the chief financial officer directly owned 175,609 shares in the company, valued at approximately $3,076,669.68. This trade represents a 2.37% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CTO David Rivas sold 36,719 shares of the business's stock in a transaction that occurred 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 directly owned 651,914 shares in the company, valued at $11,421,533.28. This trade represents a 5.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.90% of the stock is owned by insiders.

Institutional Trading of Rigetti Computing

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Rothschild Investment LLC lifted its stake in Rigetti Computing by 26.1% in the third quarter. Rothschild Investment LLC now owns 1,665 shares of the company's stock worth $50,000 after acquiring an additional 345 shares during the period. Trust Co. of Toledo NA OH lifted its stake in Rigetti Computing by 1.7% in the third quarter. Trust Co. of Toledo NA OH now owns 21,178 shares of the company's stock worth $631,000 after acquiring an additional 357 shares during the period. Prospera Financial Services Inc lifted its stake in Rigetti Computing by 1.0% in the third quarter. Prospera Financial Services Inc now owns 41,789 shares of the company's stock worth $1,245,000 after acquiring an additional 419 shares during the period. Kestra Private Wealth Services LLC lifted 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 acquiring an additional 535 shares during the period. Finally, MAI Capital Management lifted its stake 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 during the period. Hedge funds and other institutional investors own 35.38% of the company's stock.

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.

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