Rigetti Computing’s Stock Rated as “Moderate Buy” with $32.70 Target

Shares of Rigetti Computing, Inc. (NASDAQ:RGTI) have received an average rating of “Moderate Buy” from twelve analysts, according to Marketbeat Ratings. The consensus target price for the stock stands at $32.70, reflecting a mix of recommendations. Among these analysts, one has issued a sell rating, three have given a hold rating, and eight have recommended buying the stock.

Analysts have been actively evaluating Rigetti’s performance. On January 22, Royal Bank Of Canada downgraded the stock to a “hold” rating. Subsequently, on March 5, Mizuho reduced its price target from $50.00 to $43.00 while maintaining an “outperform” rating. That same day, Wedbush increased its target price from $35.00 to $40.00, also assigning an “outperform” rating. Conversely, Weiss Ratings reaffirmed a “sell (d-)” rating for Rigetti on December 29. Additionally, Needham & Company LLC lowered its price target from $51.00 to $31.00, while still rating the stock as a buy.

Quarterly Earnings and Financial Performance

Rigetti Computing announced its quarterly earnings on March 4, revealing an earnings per share (EPS) of ($0.03). This performance surpassed analysts’ expectations of ($0.05) by $0.02. The company recorded a revenue of $1.87 million for the quarter, falling short of the consensus estimate of $2.33 million and representing a decline of 17.9% compared to the same quarter last year. Analysts project that Rigetti will report an EPS of ($0.34) for the current fiscal year.

Insider Activity and Institutional Investments

In related news, Chief Financial Officer Jeffrey A. Bertelsen sold 4,270 shares of the company on March 10 at an average price of $17.52, totaling $74,810.40. Following this transaction, he retains 175,609 shares, valued at approximately $3,076,669.68. This sale reflects a 2.37% decrease in his ownership stake.

Also on March 10, Chief Technology Officer David Rivas sold 36,719 shares at the same average price, amounting to $643,316.88. After this sale, he owns 651,914 shares, valued at around $11,421,533.28, indicating a 5.33% decline in his holdings. Company insiders collectively own 1.90% of Rigetti’s stock.

Recent activity among institutional investors has also influenced Rigetti’s stock. Several hedge funds have adjusted their positions in the company. Heritage Wealth Advisors increased its stake by 454.3% in the fourth quarter, acquiring 1,164 shares valued at $26,000. Larson Financial Group LLC raised its holdings by 138.4%, owning 1,218 shares now worth $27,000. EFG International AG took a new position valued at $28,000, and Tsfg LLC boosted its stake by 320.5% with 1,312 shares valued at $29,000. Northwestern Mutual Wealth Management Co. also increased its holdings by 180.3%, now owning 1,334 shares valued at $30,000. Currently, institutional investors and hedge funds own 35.38% of Rigetti’s stock.

Rigetti Computing, founded in 2013 by CEO Chad Rigetti, specializes in designing and manufacturing superconducting quantum processors alongside a robust software stack. The company is known for its Quantum Cloud Services (QCS) platform, which allows developers and enterprises to access quantum processing units (QPUs) via the cloud, thereby advancing the field of quantum computing.