Rigetti Computing (NASDAQ:RGTI) Stock Price Up 3.1% – Should You Buy?

Shares of Rigetti Computing, Inc. (NASDAQ:RGTI) rose 3.1% on Thursday. The stock traded as high as $16.60 and last traded at $16.50. 18,776,705 shares were traded during mid-day trading, a decline of 38% from the average daily volume of 30,400,762 shares. The stock had previously closed at $16.00.

Key Stories Impacting Rigetti Computing

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

• Positive Sentiment: Quantum-sector rebound lifts RGTI: Rigetti shares are benefiting from renewed buying across quantum-computing stocks after IonQ reported an error-decoding breakthrough and announced progress involving its Superion system and NVIDIA’s research ecosystem. The gains appear to be primarily sector-driven rather than tied to a new Rigetti-specific announcement. IonQ Rises 4% as Post-Breakthrough Buying Continues; D-Wave Quantum Gains 3%, Rigetti Adds 2%
• Positive Sentiment: Investor interest remains elevated: Recent advances at IonQ and broader optimism about quantum-computing commercialization have encouraged speculative buying in peers including RGTI, D-Wave Quantum, and other early-stage technology companies. Here’s why quantum computing stocks IonQ, RGTI, QBTS, INFQ are rising
• Neutral Sentiment: High volatility remains central to the story: RGTI has fallen roughly 49% over the past year from its prior peak and recently closed at $16.01 after declining more than the broader market. The sharp swings reflect continued uncertainty about the company’s long-term technology and commercial prospects. Rigetti Stock Is Down 49% This Year
• Negative Sentiment: Fundamental and valuation risks continue to weigh on the stock: Analysts and commentators question whether Rigetti’s share price is adequately supported by its book value, while the company remains a small, cash-burning business with significant losses. Government funding may also involve milestones, performance requirements, and potential shareholder dilution. 3 Reasons Rigetti Computing Stock Could Be a Trap, Not a Bargain
• Negative Sentiment: Competitive comparisons are unfavorable: Coverage contrasting Rigetti with Cerebras highlights Rigetti’s cash burn and limited revenue base versus a larger, faster-growing, profitable competitor. Reports of insider selling across the quantum group have also added to investor caution. Cerebras Systems vs. Rigetti Computing

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on RGTI shares. Jefferies Financial Group reissued a “hold” rating and issued a $18.00 price objective on shares of Rigetti Computing in a research report on Friday, August 7th. Weiss Ratings lowered Rigetti Computing from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Thursday, September 17th. Wedbush assumed coverage on shares of Rigetti Computing in a research report on Monday, August 3rd. They set an “outperform” rating and a $40.00 price target for the company. Zacks Research lowered shares of Rigetti Computing from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 19th. Finally, Benchmark began coverage on shares of Rigetti Computing in a research note on Monday, July 27th. They issued a “buy” rating and a $25.00 target price on the stock. Seven research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $30.67.

Rigetti Computing Price Performance

The company has a market capitalization of $5.51 billion, a price-to-earnings ratio of -18.33 and a beta of 2.00. The stock’s fifty day simple moving average is $15.97 and its two-hundred day simple moving average is $17.54.

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

Insiders Place Their Bets

In related news, CEO Subodh K. Kulkarni sold 120,000 shares of the company’s stock in a transaction dated 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 completion of the sale, the chief executive officer owned 140,411 shares of the company’s stock, valued at $2,201,644.48. This represents a 46.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jeffrey A. Bertelsen sold 25,000 shares of the firm’s stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $15.00, for a total transaction of $375,000.00. Following the transaction, the chief financial officer directly owned 168,067 shares in the company, valued at approximately $2,521,005. The trade was a 12.95% decrease in their position. 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 quarter, insiders have sold 163,689 shares of company stock worth $2,570,890. Insiders own 1.60% of the company’s stock.

Hedge Funds Weigh In On Rigetti Computing

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Larson Financial Group LLC lifted its holdings in Rigetti Computing by 138.4% in 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 last quarter. PeakShares LLC bought a new stake in shares of Rigetti Computing in the 1st quarter worth approximately $28,000. Compass Financial Management LLC acquired a new stake in Rigetti Computing during the second quarter valued at approximately $34,000. EverSource Wealth Advisors LLC boosted its holdings in Rigetti Computing by 31.8% during the first quarter. EverSource Wealth Advisors LLC now owns 4,651 shares of the company’s stock worth $65,000 after buying an additional 1,121 shares in the last quarter. Finally, Clearstead Advisors LLC boosted its stake in shares of Rigetti Computing by 181.6% during the 4th quarter. Clearstead Advisors LLC now owns 3,267 shares of the company’s stock worth $72,000 after acquiring an additional 2,107 shares in the last quarter. 35.38% of the stock is owned by institutional investors.

About Rigetti Computing

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.