Rigetti Computing (NASDAQ:RGTI) Trading Down 3.6% – What’s Next?

Rigetti Computing, Inc. (NASDAQ:RGTI)’s share price was down 3.6% on Wednesday . The stock traded as low as $15.16 and last traded at $15.24. Approximately 18,484,738 shares traded hands during trading, a decline of 41% from the average session volume of 31,276,182 shares. The stock had previously closed at $15.81.

Rigetti Computing News Summary

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

• Positive Sentiment: Rigetti secured a $100 million CHIPS award to expand readout electronics, cryogenic capacity and quantum-chip fabrication. The funding could accelerate production, reduce capital constraints and strengthen Rigetti’s position in the U.S. quantum-computing supply chain. Rigetti Secures $100 Million CHIPS Award to Advance Quantum Scaling
• Positive Sentiment: The U.S. Commerce Department is reportedly considering up to $300 million in minority equity investments across Rigetti, D-Wave and Quantinuum. Potential direct government investment could strengthen Rigetti’s balance sheet and validate the strategic importance of quantum technology, although final terms remain uncertain. Uncle Sam’s Quantum Leap
• Positive Sentiment: Rigetti’s second-quarter revenue rose 185% year over year to approximately $5.1 million, while an $8.4 million system order from India is expected to contribute revenue in the fourth quarter. The order supports the longer-term case for revenue growth, though sales remain relatively small and lumpy. Rigetti Revenue Growth Forecast
• Neutral Sentiment: Reported September short interest was zero shares, resulting in a zero-day short-interest ratio. Because the figures conflict with the description of a “significant increase,” they provide little meaningful insight into RGTI’s trading outlook.
• Negative Sentiment: CEO Subodh Kulkarni sold 120,000 shares for approximately $1.9 million, reducing his direct ownership by 46.08%. The sale was made under a pre-arranged Rule 10b5-1 plan, which makes it a weaker discretionary bearish signal, but the reduced insider stake may still weigh on sentiment. Rigetti CEO SEC Filing
• Negative Sentiment: Rigetti remains unprofitable, with a recent loss of $0.05 per share and analysts expecting a full-year loss. Commentary also points to widening losses, uneven revenue and execution risks. Higher interest-rate expectations could further pressure speculative, long-duration stocks such as RGTI. Rising Losses Weigh on Rigetti’s Outlook

Wall Street Analysts Forecast Growth

RGTI has been the topic of a number of recent research reports. Rosenblatt Securities restated a “buy” rating and issued a $40.00 price objective on shares of Rigetti Computing in a report on Friday, August 7th. Weiss Ratings upgraded Rigetti Computing from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, September 2nd. Wedbush began coverage on Rigetti Computing in a report on Monday, August 3rd. They set an “outperform” rating and a $40.00 price target on the stock. Wall Street Zen cut Rigetti Computing from a “hold” rating to a “sell” rating in a research report on Saturday, August 8th. Finally, Zacks Research downgraded Rigetti Computing from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 19th. Seven research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $30.67.

Rigetti Computing Stock Up 1.1%

The company has a market cap of $5.12 billion, a P/E ratio of -16.99 and a beta of 2.00. The company has a fifty day moving average of $16.14 and a 200 day moving average of $17.64.

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

Insider Transactions at Rigetti Computing

In related news, CFO Jeffrey Bertelsen sold 25,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $15.00, for a total value of $375,000.00. Following the transaction, the chief financial officer owned 168,067 shares of the company’s stock, valued at approximately $2,521,005. This trade represents a 12.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Subodh Kulkarni sold 120,000 shares of the business’s stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $15.68, for a total transaction of $1,881,600.00. Following the sale, the chief executive officer owned 140,411 shares of the company’s stock, valued at $2,201,644.48. This trade represents a 46.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 248,633 shares of company stock worth $4,316,489. 1.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of RGTI. Heritage Wealth Advisors raised its holdings in Rigetti Computing by 454.3% in the 4th quarter. Heritage Wealth Advisors now owns 1,164 shares of the company’s stock worth $26,000 after purchasing an additional 954 shares during the period. Larson Financial Group LLC grew its holdings in Rigetti Computing by 138.4% during the fourth quarter. Larson Financial Group LLC now owns 1,218 shares of the company’s stock valued at $27,000 after purchasing an additional 707 shares during the period. PeakShares LLC bought a new stake in Rigetti Computing during the first quarter valued at about $28,000. EFG International AG purchased a new stake in Rigetti Computing in the fourth quarter worth about $28,000. Finally, Northwestern Mutual Wealth Management Co. increased its position in Rigetti Computing by 180.3% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,334 shares of the company’s stock worth $30,000 after buying an additional 858 shares in the last quarter. Hedge funds and other institutional investors own 35.38% of the company’s stock.

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.