Shares of Rigetti Computing, Inc. (NASDAQ:RGTI) have received an average rating of “Moderate Buy” from analysts, as reported by Marketbeat Ratings. The consensus among twelve analysts covering the stock includes one sell recommendation, three hold ratings, and eight buy ratings. The average price target for the next year stands at $32.70, reflecting varying outlooks on the company’s future performance.
Several recent evaluations have influenced Rigetti’s stock outlook. On January 22, 2024, the Royal Bank Of Canada downgraded Rigetti shares to a “hold” rating. Following this, on March 5, 2024, Mizuho reduced its price objective from $50.00 to $43.00 while maintaining an “outperform” rating. In contrast, Wedbush raised its target price from $35.00 to $40.00, also marking the stock as “outperform” in a research note released on January 21, 2024. Conversely, Needham & Company LLC lowered its price target from $51.00 to $31.00 on the same day as Mizuho’s adjustment, yet still rated it a “buy.” Notably, Weiss Ratings reaffirmed a “sell (d-)” rating on December 29, 2023.
Recent Financial Performance
Rigetti Computing announced its quarterly earnings on March 4, 2024, reporting earnings per share (EPS) of ($0.03), which surpassed analysts’ expectations of ($0.05) by $0.02. Despite this positive surprise, the company recorded a negative net margin of 3,111.92% and a negative return on equity of 14.91%. The firm reported revenue of $1.87 million, falling short of the consensus estimate of $2.33 million, and representing a 17.9% decrease compared to the same quarter last year. Analysts predict that Rigetti Computing will post an EPS of ($0.34) for the current fiscal year.
Insider Transactions and Institutional Investment
Recent insider activity has also drawn attention. CFO Jeffrey A. Bertelsen sold 4,270 shares of Rigetti stock on March 10, 2024, at an average price of $17.52, totaling $74,810.40. Following this transaction, Bertelsen retained 175,609 shares, valued at approximately $3,076,669.68, which indicates a 2.37% decrease in his ownership.
Similarly, Chief Technology Officer David Rivas sold 36,719 shares on the same date for a total of $643,316.88. After the sale, he owned 651,914 shares, valued around $11,421,533.28, reflecting a 5.33% reduction in his stake. Currently, company insiders hold 1.90% of the firm’s stock.
Institutional investors have also been active in adjusting their stakes in Rigetti. Heritage Wealth Advisors increased its position by 454.3% in the fourth quarter, now owning 1,164 shares valued at $26,000. Larson Financial Group LLC raised its holdings by 138.4%, acquiring 1,218 shares worth $27,000. Other notable institutional moves include EFG International AG, which purchased a new position valued at $28,000, and Tsfg LLC, which boosted holdings by 320.5%, now owning 1,312 shares valued at $29,000.
As it stands, 35.38% of Rigetti Computing’s stock is owned by institutional investors and hedge funds, reflecting a growing interest in the company as it navigates the evolving landscape of quantum computing.
Founded in 2013 by CEO Chad Rigetti, Rigetti Computing is recognized for its innovation in the quantum computing sector. The firm focuses on designing and manufacturing superconducting quantum processors, alongside developing a comprehensive software stack. Its flagship product, the Quantum Cloud Services (QCS) platform, allows developers and enterprises to harness quantum processing units (QPUs) and hybrid workflows via the cloud, positioning Rigetti as a key player in the future of quantum technology.
