Rigetti Computing (NASDAQ:RGTI) Shares Down 7.4% – What’s Next?

Rigetti Computing, Inc. (NASDAQ:RGTI) shares dropped 7.4% on Friday . The company traded as low as $17.55 and last traded at $17.85. Approximately 26,915,072 shares traded hands during trading, a decline of 10% from the average daily volume of 29,994,316 shares. The stock had previously closed at $19.27.

Key Stories Impacting Rigetti Computing

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

• Positive Sentiment: Rigetti’s first-quarter revenue surged 199% year over year and topped estimates, showing strong demand for its quantum systems and cloud platform. Rigetti Q1 Revenue Surge Signals Rising Quantum Demand Trends
• Positive Sentiment: Several market commentaries still frame RGTI as a high-interest quantum name, with some analysts and screeners viewing the stock favorably despite volatility. Wall Street Analysts Think Rigetti Computing (RGTI) Is a Good Investment: Is It?
• Neutral Sentiment: Rigetti announced that CEO Dr. Subodh Kulkarni will join a fireside chat at the Canaccord Genuity Virtual Quantum Symposium next week, which could keep the stock in focus but does not change fundamentals by itself. Rigetti Computing to Participate in Fireside Chat at Canaccord Genuity Virtual Quantum Symposium
• Neutral Sentiment: Rigetti continues to be a heavily watched momentum stock, but recent coverage suggests expectations are divided as investors assess whether the company can scale beyond a few large orders. Analysts Have Conflicting Sentiments on These Technology Companies: Rigetti Computing (RGTI) and Wisetech Global (OtherWTCHF)
• Negative Sentiment: The broader quantum-computing group sold off sharply, and RGTI fell with peers IonQ, D-Wave and Quantum Computing Inc., suggesting sector-wide profit-taking is weighing on the stock. Quantum Computing Stock Shock: IonQ, Rigetti, D-Wave, and Quantum Computing Inc. Fall 6% to 9%
• Negative Sentiment: Bearish commentary continues to question Rigetti’s path to meaningful commercial scale, citing minimal recurring revenue and long timelines to quantum advantage. Rigetti: 3 Long Years Ahead

Analysts Set New Price Targets

RGTI has been the subject of a number of recent analyst reports. Royal Bank Of Canada lowered shares of Rigetti Computing to a “hold” rating in a report on Thursday, January 22nd. Needham & Company LLC reaffirmed a “buy” rating and set a $31.00 price target on shares of Rigetti Computing in a report on Tuesday, May 12th. B. Riley Financial raised shares of Rigetti Computing from a “neutral” rating to a “buy” rating and set a $35.00 price target for the company in a report on Thursday, January 22nd. Mizuho lowered their price target on shares of Rigetti Computing from $33.00 to $27.00 and set an “outperform” rating for the company in a report on Tuesday, May 12th. Finally, Wall Street Zen lowered shares of Rigetti Computing from a “hold” rating to a “sell” rating in a report on Sunday, April 26th. Eight investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $29.18.

Rigetti Computing Stock Performance

The company has a market capitalization of $5.93 billion, a price-to-earnings ratio of -20.52 and a beta of 1.79. The company’s fifty day simple moving average is $16.57 and its two-hundred day simple moving average is $21.62.

Rigetti Computing (NASDAQ:RGTI) last announced its quarterly earnings data on Monday, May 11th. The company reported ($0.04) earnings per share for the quarter, topping the consensus estimate of ($0.05) by $0.01. The company had revenue of $4.40 million during the quarter, compared to analyst estimates of $4.09 million. Rigetti Computing had a negative net margin of 2,789.71% and a negative return on equity of 10.40%. The firm’s revenue for the quarter was up 198.9% compared to the same quarter last year. During the same period last year, the business earned ($0.05) EPS. Sell-side analysts anticipate that Rigetti Computing, Inc. will post -0.19 EPS for the current year.

Insider Buying and Selling at Rigetti Computing

In other Rigetti Computing news, CFO Jeffrey A. Bertelsen sold 4,270 shares of the firm’s stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $17.52, for a total transaction of $74,810.40. Following the completion of the transaction, the chief financial officer directly owned 175,609 shares of the company’s stock, valued at $3,076,669.68. This trade represents a 2.37% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CTO David Rivas sold 36,719 shares of the firm’s stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $17.52, for a total transaction of $643,316.88. Following the transaction, the chief technology officer directly owned 651,914 shares of the company’s stock, valued at approximately $11,421,533.28. This represents a 5.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Penserra Capital Management LLC lifted its position in shares of Rigetti Computing by 43.8% in the 3rd quarter. Penserra Capital Management LLC now owns 2,445,818 shares of the company’s stock worth $72,860,000 after buying an additional 744,577 shares during the last quarter. Clear Street Group Inc. bought a new position in shares of Rigetti Computing in the 3rd quarter worth about $47,752,000. J. Safra Sarasin Holding AG bought a new position in shares of Rigetti Computing in the 3rd quarter worth about $2,576,000. Federated Hermes Inc. lifted its position in shares of Rigetti Computing by 6,219.1% in the 3rd quarter. Federated Hermes Inc. now owns 100,853 shares of the company’s stock worth $3,004,000 after buying an additional 99,257 shares during the last quarter. Finally, Y Intercept Hong Kong Ltd lifted its position in shares of Rigetti Computing by 222.3% in the 3rd quarter. Y Intercept Hong Kong Ltd now owns 630,655 shares of the company’s stock worth $18,787,000 after buying an additional 434,989 shares during the last quarter. 35.38% of the stock is currently owned by institutional investors.

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.