Rigetti Computing (NASDAQ:RGTI) Shares Gap Up – Should You Buy?

Rigetti Computing, Inc. (NASDAQ:RGTI) gapped up prior to trading on Thursday . The stock had previously closed at $16.88, but opened at $18.69. Rigetti Computing shares last traded at $21.3480, with a volume of 35,906,019 shares trading hands.

Trending Headlines about Rigetti Computing

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

• Positive Sentiment: Rigetti signed a letter of intent with the U.S. Department of Commerce for up to $100 million in CHIPS Act funding over three years to accelerate superconducting quantum-computing research and development, a strong validation of its technology and a potential catalyst for future growth. Article Title
• Positive Sentiment: The agreement could help Rigetti tackle key scaling bottlenecks more quickly and move closer to utility-scale quantum computing, which investors may see as improving the company’s long-term commercial prospects. Article Title
• Positive Sentiment: Broader strength across quantum-computing stocks is also lifting sentiment, with traders betting that federal support could accelerate the sector and draw fresh capital into names like RGTI. Article Title
• Neutral Sentiment: Recent articles also note that Rigetti has been volatile after a strong Q1 revenue report and the rollout of its Cepheus-1-108Q system, so the stock remains highly sensitive to news flow and sector speculation. Article Title
• Negative Sentiment: The funding deal includes a possible equity stake for the government, which could create dilution concerns for existing shareholders, while the company still faces long commercialization timelines and heavy execution risk. Article Title

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the stock. Wedbush upped their price target on shares of Rigetti Computing from $35.00 to $40.00 and gave the company an “outperform” rating in a research report on Wednesday, January 21st. Wall Street Zen cut shares of Rigetti Computing from a “hold” rating to a “sell” rating in a research report on Sunday, April 26th. Benchmark decreased their price objective on shares of Rigetti Computing from $35.00 to $25.00 and set a “buy” rating for the company in a research report on Friday, March 20th. Mizuho decreased their price objective on shares of Rigetti Computing from $33.00 to $27.00 and set an “outperform” rating for the company in a research report on Tuesday, May 12th. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $40.00 price objective on shares of Rigetti Computing in a research report on Thursday, March 5th. Eight research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $29.18.

Rigetti Computing Price Performance

The firm has a market capitalization of $6.99 billion, a price-to-earnings ratio of -24.36 and a beta of 1.79. The business’s fifty day simple moving average is $16.53 and its 200 day simple moving average is $21.00.

Rigetti Computing (NASDAQ:RGTI) last posted its quarterly earnings results on Monday, May 11th. The company reported ($0.04) EPS for the quarter, topping analysts’ consensus estimates of ($0.05) by $0.01. The business had revenue of $4.40 million during the quarter, compared to analysts’ expectations 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 business’s quarterly revenue was up 198.9% on a year-over-year basis. During the same period last year, the company posted ($0.05) earnings per share. Equities research analysts expect that Rigetti Computing, Inc. will post -0.19 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Rigetti Computing news, CTO David Rivas sold 36,719 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 value 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 trade represents a 5.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, 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 in the company, valued at $3,076,669.68. This trade represents a 2.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.60% of the stock is currently owned by company insiders.

Institutional Trading of Rigetti Computing

Large investors have recently added to or reduced their stakes in the stock. Danske Bank A S purchased a new stake in Rigetti Computing during the third quarter worth about $30,000. Parallel Advisors LLC increased its holdings in Rigetti Computing by 403.2% during the third quarter. Parallel Advisors LLC now owns 1,087 shares of the company’s stock worth $32,000 after buying an additional 871 shares during the last quarter. Clearstead Advisors LLC purchased a new stake in Rigetti Computing during the third quarter worth about $35,000. Heritage Wealth Advisors increased its holdings in Rigetti Computing by 454.3% during the fourth quarter. Heritage Wealth Advisors now owns 1,164 shares of the company’s stock worth $26,000 after buying an additional 954 shares during the last quarter. Finally, Larson Financial Group LLC increased 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 worth $27,000 after buying an additional 707 shares during the last quarter. Hedge funds and other institutional investors own 35.38% of the company’s stock.

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.