Rigetti Computing (NASDAQ:RGTI) Trading Down 7.2% - What's Next?

Key Points

• Rigetti shares fell 7.2% to $14.52 amid a broader pullback in quantum and high-beta technology stocks. The stock remains below its 50-day and 200-day moving averages and the company is still unprofitable.
• Benchmark initiated coverage with a Buy rating and a $25 price target, while analysts overall maintain a “Moderate Buy” consensus with an average target of $32. Rigetti is also partnering with Hewlett Packard Enterprise and the Pittsburgh Supercomputing Center on a hybrid quantum-classical supercomputer supported by a $5 million NSF grant.
• Investors are watching upcoming second-quarter results for Novera revenue, Cepheus-1 adoption, roadmap progress and qubit fidelity. Recent insider selling and concerns about valuation and cash burn remain potential sentiment overhangs.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report)'s share price was down 7.2% during mid-day trading on Tuesday . The company traded as low as $14.05 and last traded at $14.52. 17,856,052 shares were traded during trading, a decline of 47% from the average daily volume of 33,951,453 shares. The stock had previously closed at $15.64.

More Rigetti Computing News

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

• Positive Sentiment: Benchmark initiated coverage with a Buy rating and a $25 price target, implying substantial upside from the recent trading level. The rating reflects expectations that multiple quantum-computing platforms can benefit as enterprise adoption expands. 2 Quantum Stocks in Focus After the AI Infrastructure-led Pullback
• Positive Sentiment: Rigetti is expanding its partnership with Hewlett Packard Enterprise and the Pittsburgh Supercomputing Center to build TangleLab, a hybrid quantum-classical supercomputer. The project will use Rigetti’s 9-qubit Novera system and is supported by a $5 million National Science Foundation grant, providing commercial and institutional validation for Rigetti’s technology. Construction is expected to begin in September, with operations targeted for 2027. Rigetti Expands Collaboration with HPE and Pittsburgh Supercomputing Center
• Positive Sentiment: Industry research argues that AI adoption and cloud-based services could accelerate commercial quantum-computing demand. Separately, growing concern about quantum threats to existing encryption may increase future demand for quantum-related security solutions, although this is not a direct Rigetti contract or revenue catalyst. Quantum Computing Stocks: Here’s How WisdomTree Sizes Up the Industry
• Neutral Sentiment: Investor attention is increasing ahead of Rigetti’s upcoming second-quarter results. Investors will focus on Novera revenue, Cepheus-1 adoption, technology-roadmap progress and improvements in qubit fidelity. Will Rigetti’s Upcoming Q2 Results Reinforce Its Quantum Growth Story?
• Negative Sentiment: The immediate trading backdrop remains unfavorable: quantum stocks pulled back after a sharp, catalyst-driven rally in the group, while broader concerns about AI infrastructure spending weighed on high-beta technology shares. Rigetti also remains unprofitable, and its shares are trading below both the 50-day and 200-day moving averages.
• Negative Sentiment: Reported insider activity shows company executives made no open-market purchases and sold shares during the past six months, a potential sentiment overhang for investors already concerned about valuation and cash burn.

Analysts Set New Price Targets

Several research firms have recently weighed in on RGTI. Benchmark assumed coverage on shares of Rigetti Computing in a research note on Monday. They issued a "buy" rating and a $25.00 price target on the stock. Wall Street Zen raised shares of Rigetti Computing from a "sell" rating to a "hold" rating in a research note on Monday, July 20th. Weiss Ratings raised shares of Rigetti Computing from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday, July 21st. Mizuho lowered their target price on Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating on the stock in a report on Tuesday, May 12th. Finally, Needham & Company LLC restated a "buy" rating and issued a $31.00 price target on shares of Rigetti Computing in a research report on Tuesday, May 12th. Seven equities research 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 currently has a consensus rating of "Moderate Buy" and an average target price of $32.00.

Rigetti Computing Stock Down 7.2%

The stock has a 50-day simple moving average of $19.63 and a 200 day simple moving average of $18.60. The company has a market cap of $4.83 billion, a PE ratio of -16.69 and a beta of 1.95.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last released its quarterly earnings results on Monday, May 11th. The company reported ($0.04) earnings per share for the quarter, topping analysts' consensus estimates of ($0.05) by $0.01. The business had revenue of $4.40 million during the quarter, compared to analysts' expectations 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 company's revenue was up 198.9% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.05) EPS. As a group, research analysts anticipate that Rigetti Computing, Inc. will post -0.22 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Jeffrey A. Bertelsen sold 3,682 shares of the company's stock in a transaction that occurred 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 transaction, the chief financial officer directly owned 171,927 shares in the company, valued at approximately $3,945,724.65. This represents a 2.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 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 stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $21.30, for a total transaction of $2,602,604.40. Following the transaction, the director directly owned 171,273 shares of the company's stock, valued at $3,648,114.90. The trade was a 41.64% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 728,901 shares of company stock valued at $17,546,343 over the last 90 days. 1.60% of the stock is owned by company insiders.

Institutional Trading of Rigetti Computing

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in shares of Rigetti Computing by 12.2% during the fourth quarter. Vanguard Group Inc. now owns 35,970,648 shares of the company's stock worth $796,750,000 after buying an additional 3,924,171 shares during the period. Victory Capital Management Inc. lifted its stake in Rigetti Computing by 1,632.5% during the 4th quarter. Victory Capital Management Inc. now owns 2,571,289 shares of the company's stock worth $56,954,000 after acquiring an additional 2,422,873 shares in the last quarter. Ameriprise Financial Inc. purchased a new position in Rigetti Computing during the 2nd quarter valued at about $21,887,000. Norges Bank purchased a new position in Rigetti Computing during the 4th quarter valued at about $38,889,000. Finally, Defiance ETFs LLC acquired a new position in Rigetti Computing in the 4th quarter valued at about $34,267,000. Hedge funds and other 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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