Rigetti Computing (NASDAQ:RGTI) Trading Up 8.9% - Here's Why

Key Points

• Rigetti Computing shares rose 8.9% to $17.45 in mid-day trading, with roughly 24 million shares changing hands.
• Analyst sentiment remains moderately bullish: seven analysts rate the stock a Buy, four rate it Hold, and one rates it Sell, producing a consensus “Moderate Buy” rating and a $32 price target.
• The company beat quarterly expectations, reporting a $0.04 per-share loss versus the $0.05 expected and revenue of $4.40 million, up 198.9% year over year; however, insiders sold approximately $17.5 million in shares over the past three months.

Shares of Rigetti Computing, Inc. (NASDAQ:RGTI - Get Free Report) shot up 8.9% during mid-day trading on Tuesday . The stock traded as high as $17.72 and last traded at $17.45. Approximately 24,002,817 shares were traded during mid-day trading, a decline of 28% from the average session volume of 33,550,035 shares. The stock had previously closed at $16.02.

Analysts Set New Price Targets

Several analysts have commented on the company. Mizuho reduced their price objective 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. Northland Securities assumed coverage on Rigetti Computing in a research note on Monday, April 20th. They issued a "market perform" rating and a $20.00 target price on the stock. Benchmark began coverage on Rigetti Computing in a report on Monday, July 27th. They issued a "buy" rating and a $25.00 target price on the stock. Wall Street Zen upgraded Rigetti Computing from a "sell" rating to a "hold" rating in a research note on Monday, July 20th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $31.00 price target on shares of Rigetti Computing in a report on Tuesday, May 12th. Seven investment 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. According to data from MarketBeat, Rigetti Computing has a consensus rating of "Moderate Buy" and a consensus price target of $32.00.

Rigetti Computing Stock Up 8.9%

The company's fifty day moving average price is $18.95 and its two-hundred day moving average price is $18.24. The firm has a market cap of $5.80 billion, a PE ratio of -20.06 and a beta of 1.95.

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

Insider Transactions at Rigetti Computing

In other news, CFO Jeffrey A. Bertelsen sold 3,682 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $22.95, for a total transaction of $84,501.90. Following the completion of the transaction, the chief financial officer directly owned 171,927 shares of the company's stock, valued at approximately $3,945,724.65. This represents a 2.10% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO David Rivas sold 499,328 shares of the firm's stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $25.40, for a total value of $12,682,931.20. Following the completion of the sale, the chief technology officer directly owned 325,945 shares of the company's stock, valued at $8,279,003. This represents a 60.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 728,901 shares of company stock valued at $17,546,343. Corporate insiders own 1.60% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its position in shares of Rigetti Computing by 12.2% during the 4th quarter. Vanguard Group Inc. now owns 35,970,648 shares of the company's stock worth $796,750,000 after purchasing an additional 3,924,171 shares in the last quarter. State Street Corp increased its holdings in shares of Rigetti Computing by 12.0% in the 2nd quarter. State Street Corp now owns 8,853,006 shares of the company's stock valued at $104,997,000 after purchasing an additional 946,850 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Rigetti Computing by 2.6% in the 4th quarter. Geode Capital Management LLC now owns 7,879,325 shares of the company's stock valued at $174,930,000 after purchasing an additional 196,891 shares in the last quarter. UBS Group AG lifted its stake in shares of Rigetti Computing by 90.9% in the third quarter. UBS Group AG now owns 3,081,174 shares of the company's stock valued at $91,788,000 after purchasing an additional 1,467,483 shares during the period. Finally, Northern Trust Corp lifted its stake in shares of Rigetti Computing by 16.3% in the third quarter. Northern Trust Corp now owns 2,846,095 shares of the company's stock valued at $84,785,000 after purchasing an additional 397,905 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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