Rigetti Computing (NASDAQ:RGTI) Stock Price Down 3.1% – Should You Sell?

Rigetti Computing, Inc. (NASDAQ:RGTI)’s stock price dropped 3.1% on Wednesday . The stock traded as low as $15.97 and last traded at $16.00. Approximately 27,108,959 shares traded hands during mid-day trading, a decline of 11% from the average session volume of 30,463,807 shares. The stock had previously closed at $16.52.

Rigetti Computing News Roundup

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

• Positive Sentiment: Quantum stocks initially benefited from IonQ’s reported error-decoder breakthrough and plans involving its Superion 256 system. The news lifted sentiment across the sector, including Rigetti, and highlighted continued investor interest in advances that could improve quantum-computing performance. IonQ Surges 11% as NVIDIA Research Center Deal Follows Error-Decoder Breakthrough; D-Wave Climbs 5%, Rigetti Rises 4%
• Positive Sentiment: Rigetti has more than $500 million in cash and investments and has attracted support from major technology companies including Amazon and Microsoft. Government funding and continued development of its 108-qubit Cepheus system could provide resources for future growth, although funding is tied to milestones and performance requirements. 3 Reasons Rigetti Computing Stock Could Be a Trap, Not a Bargain
• Neutral Sentiment: Analysts and commentators continue to compare Rigetti with IonQ and AI-chip company Cerebras Systems. Cerebras is described as generating substantially higher revenue and operating profitably, while Rigetti represents a higher-risk, early-stage quantum opportunity. Cerebras Systems vs. Rigetti Computing
• Negative Sentiment: Rigetti’s valuation is under scrutiny after its substantial multiyear share-price gain. Reports suggest the stock appears fully valued relative to book value, reducing the margin of safety for investors if quantum adoption takes longer than expected. Rigetti Computing Stock Looks Fully Valued Next To Its Book Value
• Negative Sentiment: Insider selling across leading pure-play quantum companies, totaling roughly $895 million in reported sales, is raising concerns that executives view current valuations as attractive. Rigetti also continues to burn cash, while government funding may involve dilution and additional execution conditions. $895 Million Insider-Selling Warning
• Negative Sentiment: Rigetti’s 108-qubit development faces a coherence-time bottleneck that must be addressed to improve gate fidelity and reliability. This underscores the technical and scaling challenges that could delay commercialization. RGTI’s 108-Qubit Performance Hurdle

Analyst Upgrades and Downgrades

Several research analysts have commented on RGTI shares. Zacks Research downgraded Rigetti Computing from a “hold” rating to a “strong sell” rating in a research note on Wednesday, August 19th. Benchmark began coverage on shares of Rigetti Computing in a research report on Monday, July 27th. They set a “buy” rating and a $25.00 target price on the stock. Weiss Ratings downgraded Rigetti Computing from a “sell (d-)” rating to a “sell (e+)” rating in a report on Thursday, September 17th. Wall Street Zen downgraded Rigetti Computing from a “hold” rating to a “sell” rating in a research report on Saturday, August 8th. Finally, Jefferies Financial Group reiterated a “hold” rating and issued a $18.00 target price on shares of Rigetti Computing in a report on Friday, August 7th. Seven investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $30.67.

Rigetti Computing Stock Performance

The company has a market capitalization of $5.34 billion, a price-to-earnings ratio of -17.78 and a beta of 2.00. The company has a 50 day moving average price of $15.96 and a 200 day moving average price of $17.55.

Rigetti Computing (NASDAQ:RGTI) last issued its earnings results on Thursday, August 6th. The company reported ($0.05) earnings per share for the quarter, hitting analysts’ consensus estimates of ($0.05). Rigetti Computing had a negative return on equity of 17.50% and a negative net margin of 2,189.54%.The company had revenue of $5.14 million for the quarter, compared to analyst estimates of $5.09 million. Research analysts forecast that Rigetti Computing, Inc. will post -0.27 EPS for the current year.

Insider Buying and Selling

In other news, COO David Rivas sold 9,038 shares of the firm’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $16.79, for a total value of $151,748.02. Following the transaction, the chief operating officer owned 316,907 shares in the company, valued at $5,320,868.53. This trade represents a 2.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Subodh Kulkarni sold 120,000 shares of the firm’s stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $15.68, for a total value of $1,881,600.00. Following the transaction, the chief executive officer owned 140,411 shares in the company, valued at approximately $2,201,644.48. This trade represents a 46.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 163,689 shares of company stock valued at $2,570,890. 1.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On Rigetti Computing

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Larson Financial Group LLC grew its position in shares of Rigetti Computing by 138.4% during the 4th quarter. Larson Financial Group LLC now owns 1,218 shares of the company’s stock valued at $27,000 after acquiring an additional 707 shares during the period. Compass Financial Management LLC purchased a new position in Rigetti Computing in the second quarter valued at approximately $34,000. PeakShares LLC bought a new position in shares of Rigetti Computing during the 1st quarter worth $28,000. Clearstead Advisors LLC increased its stake in shares of Rigetti Computing by 181.6% in the fourth quarter. Clearstead Advisors LLC now owns 3,267 shares of the company’s stock worth $72,000 after purchasing an additional 2,107 shares in the last quarter. Finally, EverSource Wealth Advisors LLC raised its holdings in Rigetti Computing by 41.9% during the 4th quarter. EverSource Wealth Advisors LLC now owns 3,530 shares of the company’s stock valued at $78,000 after acquiring an additional 1,043 shares during the period. 35.38% of the stock is owned by hedge funds and other institutional investors.

Rigetti Computing Company Profile

Rigetti Computing, Inc is a quantum computing company that develops full-stack quantum computing systems based on superconducting qubit technology. The company designs and manufactures quantum processors, develops the software needed to program and operate them, and provides access to its systems through cloud-based services.

Rigetti’s offerings include its quantum processing units and integrated quantum computing systems, as well as the Rigetti Quantum Cloud Services platform. Through cloud access and partnerships, organizations can experiment with quantum algorithms and explore potential applications in areas such as optimization, simulation, machine learning and other computationally intensive fields.