Rigetti Computing (NASDAQ:RGTI) Trading Up 1.7% - What's Next?

Key Points

• Rigetti Computing shares rose 1.7% on Friday, trading between $20.63 and $21.95 with volume slightly below its average. The stock’s move came amid continued interest in the quantum computing name.
• Wall Street sentiment remains generally positive, with analysts assigning a Moderate Buy consensus and an average price target of $29.18. Recent ratings were mixed, however, with price-target cuts from Mizuho and a sell rating from Weiss.
• The company reported better-than-expected quarterly results, posting a smaller-than-expected loss and revenue of $4.40 million, up 198.9% year over year. Insider selling also stood out, including large sales by the CTO and a director in recent weeks.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) shares were up 1.7% on Friday . The company traded as high as $21.95 and last traded at $20.98. Approximately 34,476,085 shares changed hands during mid-day trading, a decline of 4% from the average daily volume of 36,008,348 shares. The stock had previously closed at $20.63.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the company. Needham & Company LLC reaffirmed a "buy" rating and issued a $31.00 price target on shares of Rigetti Computing in a report on Tuesday, May 12th. Mizuho dropped their price target on Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating on the stock in a report on Tuesday, May 12th. Northland Securities assumed coverage on Rigetti Computing in a report on Monday, April 20th. They issued a "market perform" rating and a $20.00 price target on the stock. Rosenblatt Securities reaffirmed a "buy" rating and issued a $40.00 price target on shares of Rigetti Computing in a report on Thursday. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Rigetti Computing in a research note on Tuesday, June 2nd. Eight research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Rigetti Computing currently has an average rating of "Moderate Buy" and a consensus target price of $29.18.

Rigetti Computing Stock Performance

The firm's 50 day simple moving average is $19.21 and its 200-day simple moving average is $20.23. The company has a market capitalization of $6.97 billion, a price-to-earnings ratio of -24.11 and a beta of 1.88.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last announced its earnings results 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. Rigetti Computing had a negative net margin of 2,789.71% and a negative return on equity of 10.40%. The company had revenue of $4.40 million for the quarter, compared to the consensus estimate of $4.09 million. During the same period in the previous year, the business earned ($0.05) EPS. The company's revenue was up 198.9% on a year-over-year basis. As a group, equities analysts anticipate that Rigetti Computing, Inc. will post -0.22 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Rigetti Computing news, Director Ray O. Johnson sold 122,188 shares of the stock in a transaction on Monday, June 8th. The shares were 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. This represents a 41.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO David Rivas sold 499,328 shares of the stock in a transaction on 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 directly owned 325,945 shares in the company, valued at $8,279,003. The trade was a 60.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 643,957 shares of company stock valued at $15,800,744 over the last three months. 1.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rigetti Computing

Several hedge funds have recently bought and sold shares of the business. Rothschild Investment LLC boosted its holdings in Rigetti Computing by 26.1% during the third quarter. Rothschild Investment LLC now owns 1,665 shares of the company's stock valued at $50,000 after acquiring an additional 345 shares during the period. Prospera Financial Services Inc boosted its holdings in Rigetti Computing by 1.0% during the third quarter. Prospera Financial Services Inc now owns 41,789 shares of the company's stock valued at $1,245,000 after acquiring an additional 419 shares during the period. Kestra Private Wealth Services LLC boosted its holdings in Rigetti Computing by 1.4% during 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. MAI Capital Management boosted its holdings in Rigetti Computing by 17.7% during the third quarter. MAI Capital Management now owns 3,763 shares of the company's stock valued at $112,000 after acquiring an additional 566 shares during the period. Finally, Global Retirement Partners LLC boosted its holdings in 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. 35.38% of the stock is owned by institutional investors and hedge funds.

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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