Rigetti Computing (NASDAQ:RGTI) Stock Rating Lowered by Zacks Research

Rigetti Computing (NASDAQ:RGTI) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Wednesday,Zacks.com reports.

Other equities analysts have also recently issued research reports about the stock. Needham & Company LLC reaffirmed a “buy” rating and issued a $31.00 price target on shares of Rigetti Computing in a research report on Tuesday, May 12th. Wedbush started coverage on Rigetti Computing in a report on Monday, August 3rd. They set an “outperform” rating and a $40.00 price objective for the company. Benchmark initiated coverage on Rigetti Computing in a research note on Monday, July 27th. They issued a “buy” rating and a $25.00 price objective for the company. Mizuho lowered their price objective on Rigetti Computing from $33.00 to $27.00 and set an “outperform” rating for the company in a research note on Tuesday, May 12th. Finally, Wall Street Zen lowered Rigetti Computing from a “hold” rating to a “sell” rating in a report on Saturday, August 8th. Seven equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, Rigetti Computing presently has an average rating of “Hold” and a consensus target price of $30.67.

Rigetti Computing Trading Down 5.5%

RGTI opened at $16.07 on Wednesday. Rigetti Computing has a 1-year low of $12.53 and a 1-year high of $58.15. The company has a market cap of $5.36 billion, a price-to-earnings ratio of -17.86 and a beta of 1.99. The company’s fifty day moving average price is $17.44 and its two-hundred day moving average price is $17.73.

Rigetti Computing (NASDAQ:RGTI) last issued its quarterly earnings data 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 analysts’ expectations of $5.09 million. Rigetti Computing had a negative net margin of 2,189.54% and a negative return on equity of 17.50%. As a group, equities analysts forecast that Rigetti Computing will post -0.27 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Ray O. Johnson sold 122,188 shares of the firm’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $21.30, for a total transaction of $2,602,604.40. Following the transaction, the director directly owned 171,273 shares of the company’s stock, valued at $3,648,114.90. This trade represents a 41.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jeffrey A. Bertelsen sold 3,860 shares of the business’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $16.89, for a total transaction of $65,195.40. Following the transaction, the chief financial officer owned 168,067 shares in the company, valued at approximately $2,838,651.63. This trade represents a 2.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 725,149 shares of company stock valued at $17,345,425 over the last ninety days. Company insiders own 1.60% of the company’s stock.

Institutional Trading of Rigetti Computing

Institutional investors and hedge funds have recently modified their holdings of the business. Danske Bank A S bought a new stake in Rigetti Computing during the third quarter worth $30,000. Parallel Advisors LLC grew its stake in Rigetti Computing by 403.2% in the 3rd quarter. Parallel Advisors LLC now owns 1,087 shares of the company’s stock valued at $32,000 after purchasing an additional 871 shares during the period. Heritage Wealth Advisors grew its stake in Rigetti Computing by 454.3% in the 4th quarter. Heritage Wealth Advisors now owns 1,164 shares of the company’s stock valued at $26,000 after purchasing an additional 954 shares during the period. Larson Financial Group LLC increased its position in shares of Rigetti Computing by 138.4% during the 4th 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 last quarter. Finally, EFG International AG purchased a new stake in shares of Rigetti Computing during the 4th quarter valued at $28,000. 35.38% of the stock is owned by hedge funds and other institutional investors.

Rigetti Computing News Roundup

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

• Positive Sentiment: Rigetti reported strong second-quarter revenue growth to $5.14 million from $1.80 million a year earlier. The company also highlighted a U.S. Department of Commerce letter of intent for up to $100 million in quantum R&D support and commercial system deliveries involving partners including Nvidia and HPE. Did Quantum Revenue Surge And US$100 Million R&D Backing Just Shift Rigetti Computing’s Investment Narrative?
• Positive Sentiment: The company created a dedicated Systems Delivery organization to support growing demand for on-premises quantum systems. David Rivas became chief operating officer, while Andrew Bestwick was appointed chief technology officer to focus on chip development and hardware engineering. Rigetti said the structure should improve customer deployments and help advance its target of 99.5% median two-qubit gate fidelity for its Cepheus-1-108Q system. Rigetti Computing Establishes Dedicated Systems Delivery Organization
• Neutral Sentiment: Board member Dr. Ray Johnson announced an upcoming resignation, adding to investor focus on governance and management changes. The available report does not indicate that the resignation reflects a change in business strategy. Rigetti Computing Announces Upcoming Board Member Resignation
• Negative Sentiment: Rigetti shares declined along with other quantum-computing stocks, including IonQ and D-Wave, in a broad sector selloff. The report cited no specific company news driving the industry-wide move, suggesting risk reduction across a volatile category. Quantum Stock Selloff
• Negative Sentiment: The reorganization was interpreted by some investors as a leadership shake-up, particularly because it separates systems delivery from chip development. Although management described the changes as an effort to improve execution, investors may remain concerned about transition risk and the company’s ability to meet technology and deployment milestones. Rigetti Shares Plunge After Major Leadership Shake-Up
• Negative Sentiment: CTO Andrew Bestwick, COO David Rivas, and CFO Jeffrey Bertelsen sold shares to cover tax withholding obligations tied to vested equity awards. The transactions were relatively small portions of their remaining holdings, but the absence of reported insider purchases adds to a cautious sentiment around RGTI.

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.