Rigetti Computing (NASDAQ:RGTI) Trading Up 19.9% - Time to Buy?

Key Points

• Rigetti Computing shares jumped 19.9% in midday trading, hitting as high as $27.79 on extremely heavy volume of about 202.4 million shares, far above its normal daily average.
• The rally was fueled by a letter of intent with the U.S. Department of Commerce for up to $100 million in CHIPS Act funding over three years, plus broader enthusiasm around government-backed quantum computing spending.
• Despite the momentum, the stock still faces fundamental and valuation concerns: recent losses remain sizable, an equity stake in the government deal could dilute shareholders, and analysts’ average target is $29.18 with a “Moderate Buy” rating.

Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report)'s share price was up 19.9% during mid-day trading on Friday . The company traded as high as $27.79 and last traded at $26.42. Approximately 202,356,207 shares were traded during trading, an increase of 516% from the average daily volume of 32,837,020 shares. The stock had previously closed at $22.04.

More Rigetti Computing News

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

• Positive Sentiment: Rigetti announced a letter of intent with the U.S. Department of Commerce for up to $100 million in CHIPS Act funding over three years to accelerate superconducting quantum R&D, giving the company a strong credibility boost and a potential source of non-dilutive-like strategic support for development. Rigetti Signs Letter of Intent with U.S. Government for Quantum Computing Research
• Positive Sentiment: The broader quantum-computing group is surging after Washington’s reported $2 billion push for the sector, lifting Rigetti along with peers like IonQ, D-Wave and Quantum Computing Inc. as investors rotate into the theme. Quantum rally sends Rigetti stock toward key resistance zone
• Positive Sentiment: Media coverage highlights Rigetti as a beneficiary of the government-backed quantum race, which is amplifying momentum and drawing in speculative buyers. Ca$htag$: RGTI Surges as Bulls Pile into Quantum Stocks
• Neutral Sentiment: Some commentary notes Rigetti still faces execution and valuation questions, and a separate headline pointed to concerns about a shelf registration and wider Q1 losses, underscoring that the rally is being driven more by catalysts and sentiment than by near-term fundamentals. Rigetti Computing (RGTI) Is Down 8.3% After Shelf Registration And Q1 Losses Widening Concerns
• Negative Sentiment: The Commerce Department deal contemplates an equity stake for the government, which could dilute existing shareholders if finalized. Rigetti Signs Letter of Intent with U.S. Government for Quantum Computing Research

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on RGTI shares. B. Riley Financial upgraded shares of Rigetti Computing from a "neutral" rating to a "buy" rating and set a $35.00 price target on the stock in a research note on Thursday, January 22nd. TD Cowen lowered shares of Rigetti Computing from a "buy" rating to a "hold" rating in a research note on Thursday, February 12th. Wall Street Zen lowered shares of Rigetti Computing from a "hold" rating to a "sell" rating in a research note on Sunday, April 26th. Mizuho cut their price objective on shares of Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating on the stock in a research note on Tuesday, May 12th. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $31.00 price objective on shares of Rigetti Computing in a research note on Tuesday, May 12th. Eight research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $29.18.

Rigetti Computing Stock Up 19.9%

The stock has a market cap of $8.78 billion, a price-to-earnings ratio of -30.37 and a beta of 1.79. The stock's 50 day moving average price is $16.63 and its two-hundred day moving average price is $20.84.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) last released its quarterly earnings data 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 firm had revenue of $4.40 million for the quarter, compared to analyst estimates of $4.09 million. Rigetti Computing had a negative net margin of 2,789.71% and a negative return on equity of 10.40%. The business's quarterly revenue was up 198.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.05) earnings per share. On average, analysts predict that Rigetti Computing, Inc. will post -0.19 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CTO David Rivas sold 36,719 shares of the stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $17.52, for a total transaction of $643,316.88. Following the sale, the chief technology officer directly owned 651,914 shares of the company's stock, valued at approximately $11,421,533.28. This represents a 5.33% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Jeffrey A. Bertelsen sold 4,270 shares of the stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $17.52, for a total transaction of $74,810.40. Following the sale, the chief financial officer directly owned 175,609 shares in the company, valued at $3,076,669.68. This trade represents a 2.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 1.60% of the company's stock.

Institutional Trading of Rigetti Computing

A number of hedge funds have recently added to or reduced their stakes in RGTI. Vanguard Group Inc. boosted its holdings in Rigetti Computing by 40.4% during the third quarter. Vanguard Group Inc. now owns 32,046,477 shares of the company's stock worth $954,665,000 after buying an additional 9,228,888 shares in the last quarter. Victory Capital Management Inc. boosted its holdings in Rigetti Computing by 1,632.5% during the fourth quarter. Victory Capital Management Inc. now owns 2,571,289 shares of the company's stock worth $56,954,000 after buying an additional 2,422,873 shares in the last quarter. Ameriprise Financial Inc. purchased a new stake in Rigetti Computing during the second quarter worth $21,887,000. Norges Bank purchased a new stake in Rigetti Computing during the fourth quarter worth $38,889,000. Finally, Clear Street Group Inc. purchased a new stake in Rigetti Computing during the third quarter worth $47,752,000. 35.38% of the stock is owned by hedge funds and other institutional investors.

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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