Rigetti Computing (NASDAQ:RGTI) Stock Price Down 4% Following Analyst Downgrade

Shares of Rigetti Computing, Inc. (NASDAQ:RGTI) were down 4% during mid-day trading on Wednesday after Zacks Research downgraded the stock from a hold rating to a strong sell rating. The company traded as low as $16.67 and last traded at $17.00. Approximately 19,153,316 shares were traded during trading, a decline of 41% from the average daily volume of 32,501,789 shares. The stock had previously closed at $17.71.

A number of other analysts have also issued reports on RGTI. Wedbush assumed coverage on Rigetti Computing in a research note on Monday, August 3rd. They set an “outperform” rating and a $40.00 price objective on the stock. Jefferies Financial Group reiterated a “hold” rating and set a $18.00 price target on shares of Rigetti Computing in a research report on Friday, August 7th. Benchmark began coverage on shares of Rigetti Computing in a report on Monday, July 27th. They issued a “buy” rating and a $25.00 price target on the stock. Weiss Ratings lowered shares of Rigetti Computing from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Tuesday, August 11th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $31.00 target price on shares of Rigetti Computing in a report on Tuesday, May 12th. Seven equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Rigetti Computing presently has an average rating of “Hold” and a consensus target price of $30.67.

Insider Activity at Rigetti Computing

In other 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 value of $2,602,604.40. Following the transaction, the director owned 171,273 shares of the company’s stock, valued at $3,648,114.90. This represents a 41.64% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO David Rivas sold 499,328 shares of the firm’s stock in a transaction on Friday, May 29th. The shares were sold at an average price of $25.40, for a total transaction of $12,682,931.20. Following the sale, the chief technology officer owned 325,945 shares in the company, valued at approximately $8,279,003. This trade represents a 60.50% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 725,149 shares of company stock worth $17,345,425 in the last 90 days. 1.60% of the stock is currently owned by corporate insiders.

Key Rigetti Computing News

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

• Positive Sentiment: Quantum stocks surged across the sector despite no major company-specific announcement, suggesting that momentum, speculative interest, and renewed enthusiasm for the quantum-computing theme were major drivers of RGTI’s move. Quantum Computing Stocks Rally
• Positive Sentiment: Rigetti’s second-quarter revenue rose 185.3% year over year to $5.14 million, helped by Novera hardware sales, slightly exceeding analyst expectations. The company also cited commercial system deliveries involving partners such as Nvidia and HPE. RGTI Q2 Revenue Growth
• Positive Sentiment: A U.S. Department of Commerce letter of intent could provide up to $100 million in quantum research-and-development support. Rigetti also reported approximately $541.3 million in liquidity, strengthening its ability to fund development and customer deployments. Rigetti Operating Structure
• Positive Sentiment: The company created a dedicated Systems Delivery organization to handle manufacturing, deployments, and customer support. David Rivas became COO, while Andrew Bestwick became CTO and will focus on chip and processor development. Management said the changes are intended to improve execution and advance the Cepheus-1-108Q roadmap. Rigetti Systems Delivery Organization
• Neutral Sentiment: Analyst views remain mixed. Several firms maintain Buy or Outperform ratings with targets near $31 to $40, but the broader consensus is Hold, reflecting substantial uncertainty around commercialization and future growth.
• Negative Sentiment: Despite the revenue increase, Rigetti’s net loss widened to $52.61 million from $39.65 million a year earlier. The stock trades at roughly 100 times sales, and customer concentration makes future system deliveries particularly important. RGTI Valuation and Risks
• Negative Sentiment: Zacks Research downgraded RGTI from Hold to Strong Sell, adding pressure to the valuation debate.
• Negative Sentiment: The CFO, COO, and CTO each sold shares to cover tax withholding on vested equity awards. The sales represented small portions of their remaining holdings, but the absence of insider purchases contributes to cautious sentiment.

Institutional Trading of Rigetti Computing

Hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada grew its stake in shares of Rigetti Computing by 106.2% during the first quarter. Royal Bank of Canada now owns 220,701 shares of the company’s stock valued at $1,748,000 after buying an additional 113,644 shares during the last quarter. AQR Capital Management LLC lifted its stake in shares of Rigetti Computing by 138.9% in the 1st quarter. AQR Capital Management LLC now owns 81,047 shares of the company’s stock valued at $642,000 after acquiring an additional 47,115 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Rigetti Computing by 25.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 112,409 shares of the company’s stock valued at $890,000 after acquiring an additional 22,770 shares during the period. NewEdge Advisors LLC boosted its holdings in Rigetti Computing by 197.8% during the 1st quarter. NewEdge Advisors LLC now owns 25,592 shares of the company’s stock valued at $203,000 after acquiring an additional 16,998 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC bought a new position in Rigetti Computing during the 1st quarter worth approximately $3,115,000. 35.38% of the stock is owned by institutional investors.

Rigetti Computing Stock Performance

The firm has a 50-day moving average of $17.44 and a 200-day moving average of $17.73. The firm has a market capitalization of $5.98 billion, a P/E ratio of -19.90 and a beta of 1.99.

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

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.