Rigetti Computing (NASDAQ:RGTI) Lowered to “Strong Sell” Rating by Zacks Research

Zacks Research cut shares of Rigetti Computing (NASDAQ:RGTI) from a hold rating to a strong sell rating in a report released on Wednesday morning,Zacks.com reports.

Several other equities analysts have also issued reports on the company. Jefferies Financial Group reaffirmed a “hold” rating and issued a $18.00 price target on shares of Rigetti Computing in a research report on Friday, August 7th. Needham & Company LLC restated a “buy” rating and issued a $31.00 price objective on shares of Rigetti Computing in a report on Tuesday, May 12th. Benchmark initiated coverage on Rigetti Computing in a report on Monday, July 27th. They issued a “buy” rating and a $25.00 target price for the company. Weiss Ratings lowered shares of Rigetti Computing from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Tuesday, August 11th. Finally, Wall Street Zen downgraded shares of Rigetti Computing from a “hold” rating to a “sell” rating in a research report on Saturday, August 8th. Seven equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Rigetti Computing presently has an average rating of “Hold” and an average target price of $30.67.

Rigetti Computing Stock Down 5.5%

Shares of RGTI stock opened at $16.07 on Wednesday. The stock has a market cap of $5.36 billion, a price-to-earnings ratio of -17.86 and a beta of 1.99. The business’s fifty day moving average is $17.44 and its 200 day moving average is $17.73. Rigetti Computing has a twelve month low of $12.53 and a twelve month high of $58.15.

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

Insiders Place Their Bets

In related news, CFO Jeffrey A. Bertelsen sold 3,860 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $16.89, for a total value of $65,195.40. Following the transaction, the chief financial officer directly owned 168,067 shares of the company’s stock, valued at approximately $2,838,651.63. The trade was a 2.25% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Ray O. Johnson sold 84,944 shares of Rigetti Computing stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $20.55, for a total transaction of $1,745,599.20. Following the sale, the director owned 95,537 shares in the company, valued at approximately $1,963,285.35. The trade was a 47.07% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 725,149 shares of company stock worth $17,345,425 over the last quarter. Company insiders own 1.60% of the company’s stock.

Hedge Funds Weigh In On Rigetti Computing

Large investors have recently made changes to their positions in the company. Danske Bank A S purchased a new stake in Rigetti Computing in the third quarter worth $30,000. Parallel Advisors LLC raised its stake in Rigetti Computing by 403.2% in the third quarter. Parallel Advisors LLC now owns 1,087 shares of the company’s stock worth $32,000 after buying an additional 871 shares in the last quarter. Heritage Wealth Advisors boosted its position in Rigetti Computing by 454.3% during the 4th quarter. Heritage Wealth Advisors now owns 1,164 shares of the company’s stock valued at $26,000 after acquiring an additional 954 shares in the last quarter. Larson Financial Group LLC raised its position in shares of Rigetti Computing by 138.4% in the 4th quarter. Larson Financial Group LLC now owns 1,218 shares of the company’s stock worth $27,000 after acquiring an additional 707 shares in the last quarter. Finally, EFG International AG purchased a new stake in shares of Rigetti Computing during the 4th quarter worth $28,000. 35.38% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Rigetti Computing

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

• Positive Sentiment: Rigetti reported strong second-quarter revenue growth to $5.14 million from $1.80 million a year earlier. The company also highlighted a U.S. Department of Commerce letter of intent for up to $100 million in quantum R&D support and commercial system deliveries involving partners including Nvidia and HPE. Did Quantum Revenue Surge And US$100 Million R&D Backing Just Shift Rigetti Computing’s Investment Narrative?
• Positive Sentiment: The company created a dedicated Systems Delivery organization to support growing demand for on-premises quantum systems. David Rivas became chief operating officer, while Andrew Bestwick was appointed chief technology officer to focus on chip development and hardware engineering. Rigetti said the structure should improve customer deployments and help advance its target of 99.5% median two-qubit gate fidelity for its Cepheus-1-108Q system. Rigetti Computing Establishes Dedicated Systems Delivery Organization
• Neutral Sentiment: Board member Dr. Ray Johnson announced an upcoming resignation, adding to investor focus on governance and management changes. The available report does not indicate that the resignation reflects a change in business strategy. Rigetti Computing Announces Upcoming Board Member Resignation
• Negative Sentiment: Rigetti shares declined along with other quantum-computing stocks, including IonQ and D-Wave, in a broad sector selloff. The report cited no specific company news driving the industry-wide move, suggesting risk reduction across a volatile category. Quantum Stock Selloff
• Negative Sentiment: The reorganization was interpreted by some investors as a leadership shake-up, particularly because it separates systems delivery from chip development. Although management described the changes as an effort to improve execution, investors may remain concerned about transition risk and the company’s ability to meet technology and deployment milestones. Rigetti Shares Plunge After Major Leadership Shake-Up
• Negative Sentiment: CTO Andrew Bestwick, COO David Rivas, and CFO Jeffrey Bertelsen sold shares to cover tax withholding obligations tied to vested equity awards. The transactions were relatively small portions of their remaining holdings, but the absence of reported insider purchases adds to a cautious sentiment around RGTI.

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.