Rigetti Computing (NASDAQ:RGTI) Shares Down 7% Following Analyst Downgrade

Rigetti Computing, Inc. (NASDAQ:RGTI)’s stock price was down 7% during trading on Tuesday after Mizuho lowered their price target on the stock from $33.00 to $27.00. Mizuho currently has an outperform rating on the stock. Rigetti Computing traded as low as $18.23 and last traded at $19.07. Approximately 49,197,561 shares were traded during trading, an increase of 64% from the average daily volume of 30,012,105 shares. The stock had previously closed at $20.51.

Several other equities analysts also recently commented on the stock. Needham & Company LLC reaffirmed a “buy” rating and set a $31.00 price objective on shares of Rigetti Computing in a research note on Tuesday. Royal Bank Of Canada downgraded shares of Rigetti Computing to a “hold” rating in a research note on Thursday, January 22nd. Northland Securities assumed coverage on shares of Rigetti Computing in a research report on Monday, April 20th. They set a “market perform” rating and a $20.00 price target on the stock. TD Cowen downgraded shares of Rigetti Computing from a “buy” rating to a “hold” rating in a research note on Thursday, February 12th. Finally, Rosenblatt Securities restated a “buy” rating and issued a $40.00 price objective on shares of Rigetti Computing in a report on Thursday, March 5th. Eight analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $29.18.

Insider Buying and Selling

In other news, CFO Jeffrey A. Bertelsen sold 4,270 shares of the stock in a transaction that occurred 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 sale, the chief financial officer owned 175,609 shares in the company, valued at $3,076,669.68. This represents a 2.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CTO David Rivas sold 36,719 shares of the stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $17.52, for a total transaction of $643,316.88. Following the sale, the chief technology officer owned 651,914 shares in the company, valued at approximately $11,421,533.28. The trade was a 5.33% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 1.60% of the company’s stock.

Trending Headlines about Rigetti Computing

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

• Positive Sentiment: Rigetti topped Q1 expectations, posting a smaller-than-expected loss of $0.04 per share versus estimates of $0.05, while revenue of $4.4 million also exceeded forecasts. Rigetti Computing tops Q1 earnings estimates as loss narrows
• Positive Sentiment: Revenue jumped 198.9% year over year, gross margin improved, and the company highlighted growing adoption of its quantum systems and cloud platforms. Rigetti Q1 Earnings & Revenues Beat Estimates, Gross Margin Up
• Positive Sentiment: Analyst sentiment remained constructive, with Needham reaffirming a Buy rating and Mizuho still rating the stock Outperform, even after trimming its price target. Analyst update via Benzinga/The Fly
• Neutral Sentiment: The company also pointed to continued progress on its superconducting quantum systems and chiplet-based architecture, including a 108-qubit system launch, which supports its long-term technology roadmap.
• Negative Sentiment: Despite the beat, the stock moved lower as investors seemed disappointed that Rigetti is still posting losses and remains far from consistent profitability, especially after a stock run-up ahead of earnings. Rigetti Computing falls as Q1 results meet estimates

Institutional Investors Weigh In On Rigetti Computing

A number of institutional investors have recently made changes to their positions in the company. Rothschild Investment LLC grew its holdings in shares of Rigetti Computing by 26.1% during the third quarter. Rothschild Investment LLC now owns 1,665 shares of the company’s stock valued at $50,000 after buying an additional 345 shares during the last quarter. Prospera Financial Services Inc grew its holdings in shares of Rigetti Computing by 1.0% during the third quarter. Prospera Financial Services Inc now owns 41,789 shares of the company’s stock valued at $1,245,000 after buying an additional 419 shares during the last quarter. Kestra Private Wealth Services LLC grew its holdings in shares of Rigetti Computing by 1.4% during the fourth quarter. Kestra Private Wealth Services LLC now owns 37,534 shares of the company’s stock valued at $831,000 after buying an additional 535 shares during the last quarter. MAI Capital Management grew its holdings in shares of Rigetti Computing by 17.7% during the third quarter. MAI Capital Management now owns 3,763 shares of the company’s stock valued at $112,000 after buying an additional 566 shares during the last quarter. Finally, Global Retirement Partners LLC grew its holdings in shares of Rigetti Computing by 10.2% during the fourth quarter. Global Retirement Partners LLC now owns 6,656 shares of the company’s stock valued at $147,000 after buying an additional 615 shares during the last quarter. Hedge funds and other institutional investors own 35.38% of the company’s stock.

Rigetti Computing Stock Down 7.0%

The stock’s fifty day moving average price is $16.47 and its 200 day moving average price is $22.05. The stock has a market cap of $6.33 billion, a PE ratio of -28.04 and a beta of 1.79.

Rigetti Computing (NASDAQ:RGTI) last posted its quarterly earnings results on Monday, May 11th. The company reported ($0.04) EPS for the quarter, beating analysts’ consensus estimates of ($0.05) by $0.01. The firm had revenue of $4.40 million for the quarter, compared to analysts’ expectations of $4.09 million. Rigetti Computing had a negative net margin of 3,111.92% and a negative return on equity of 14.91%. The business’s revenue for the quarter was up 198.9% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.05) earnings per share. On average, equities research analysts expect that Rigetti Computing, Inc. will post -0.16 earnings per share for the current fiscal year.

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.