Rigetti Computing (NASDAQ:RGTI) Trading Down 7.1% - Here's What Happened

Key Points

• Rigetti Computing shares fell 7.1% on Monday, trading as low as $15.15 after closing at $16.54 the prior day, on volume below its recent average.
• Analysts remain mixed on the stock: while the consensus rating is Moderate Buy with an average target price of $30.60, some firms have cut targets and Weiss Ratings reiterated a sell rating.
• The company’s latest earnings showed revenue growth of 198.9% year over year and a small EPS beat, but insiders have also sold a significant amount of stock recently, including a large sale by the CTO.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) shares fell 7.1% on Monday . The company traded as low as $15.15 and last traded at $15.36. 26,258,845 shares were traded during trading, a decline of 25% from the average daily volume of 34,948,188 shares. The stock had previously closed at $16.54.

Analyst Ratings Changes

RGTI has been the subject of a number of analyst reports. Weiss Ratings reiterated a "sell (e+)" rating on shares of Rigetti Computing in a research note on Tuesday, June 2nd. Northland Securities assumed coverage on Rigetti Computing in a research report on Monday, April 20th. They issued a "market perform" rating and a $20.00 price target for the company. Mizuho decreased their price target on Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating for the company in a research note on Tuesday, May 12th. Needham & Company LLC restated a "buy" rating and issued a $31.00 target price on shares of Rigetti Computing in a report on Tuesday, May 12th. Finally, Benchmark decreased their target price on Rigetti Computing from $35.00 to $25.00 and set a "buy" rating for the company in a research report on Friday, March 20th. Seven investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Rigetti Computing presently has a consensus rating of "Moderate Buy" and an average target price of $30.60.

Rigetti Computing Trading Down 7.1%

The stock has a market cap of $5.11 billion, a price-to-earnings ratio of -17.65 and a beta of 1.95. The stock has a fifty day simple moving average of $20.44 and a 200-day simple moving average of $19.27.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last posted its quarterly earnings data on Monday, May 11th. The company reported ($0.04) earnings per share for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts' expectations of $4.09 million. During the same period in the prior year, the business earned ($0.05) earnings per share. Rigetti Computing's revenue for the quarter was up 198.9% compared to the same quarter last year. Sell-side analysts forecast that Rigetti Computing, Inc. will post -0.22 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CTO David Rivas sold 499,328 shares of the business's stock in a transaction dated Friday, May 29th. The shares were 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 transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Jeffrey A. Bertelsen sold 3,682 shares of the company's stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $22.95, for a total transaction of $84,501.90. Following the transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 728,901 shares of company stock worth $17,546,343 in the last ninety days. Insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On Rigetti Computing

A number of institutional investors have recently bought and sold shares of RGTI. Heritage Wealth Advisors lifted its holdings in shares of Rigetti Computing by 454.3% during the 4th quarter. Heritage Wealth Advisors now owns 1,164 shares of the company's stock worth $26,000 after acquiring an additional 954 shares during the period. Larson Financial Group LLC raised its position in Rigetti Computing by 138.4% in 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 in the last quarter. PeakShares LLC acquired a new stake in Rigetti Computing during the first quarter valued at approximately $28,000. EFG International AG bought a new stake in shares of Rigetti Computing in the 4th quarter valued at approximately $28,000. Finally, Tsfg LLC raised its holdings in shares of Rigetti Computing by 320.5% in the 4th quarter. Tsfg LLC now owns 1,312 shares of the company's stock worth $29,000 after buying an additional 1,000 shares in 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.

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