Rigetti Computing, Inc.

NASDAQ Capital Market
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Somewhat Bullish +45

Rigetti Computing (NASDAQ:RGTI) Research Coverage Started at Benchmark

📈 Benchmark initiated coverage with a Buy rating and $25.00 price target on Rigetti Computing.

📊 Needham & Company reiterated a Buy rating with a $31.00 price objective for the stock.

💰 Rosenblatt Securities reissued a Buy rating and set a higher $40.00 target price.

📉 Weiss Ratings upgraded Rigetti from a 'sell (e+)' to a slightly better 'sell (d-)' rating.

🏦 Northland Securities started coverage with a Market Perform rating and $20.00 price target.

🔄 Wall Street Zen upgraded the stock from a Sell rating to a Hold rating recently.

📈 Rigetti reported quarterly revenue of $4.40 million, beating analyst expectations of $4.09 million.

🚀 Quarterly revenue surged 198.9% compared to the same quarter in the prior year.

💸 The company posted EPS of ($0.04), beating the consensus estimate of ($0.05) by $0.01.

⚠️ Rigetti reported a negative net margin of -2,789.71% and negative return on equity of -10.40%.

📉 Analysts predict the company will post -$0.22 earnings per share for the current fiscal year.

💼 Director Ray O. Johnson sold 84,944 shares in a transaction valued at $1,745,599.20.

📉 The director's sale represented a 47.07% decrease in their total ownership of the stock.

💼 CFO Jeffrey A. Bertelsen sold 3,682 shares to cover tax withholding obligations on equity awards.

🏛️ Insiders collectively sold 728,901 shares worth $17.5 million over the last ninety days.

📈 Vanguard Group boosted its holdings by 12.2% in the fourth quarter to own ~36 million shares.

🚀 Victory Capital Management increased its stake by 1,632.5% during the fourth quarter.

🌍 Norges Bank acquired a new stake valued at approximately $38.9 million in the fourth quarter.

📊 Institutional investors now own 35.38% of Rigetti Computing's outstanding stock.

💻 The company designs superconducting quantum processors and offers Quantum Cloud Services (QCS).

👤 CEO Chad Rigetti founded the company in 2013 to advance quantum machine scalability.

Bullish Signals
  • Benchmark initiated coverage with a Buy rating and $25.00 price target, signaling renewed institutional interest.
  • Needham & Company reiterated a Buy rating with a $31.00 price objective, maintaining bullish sentiment.
  • Rosenblatt Securities reissued a Buy rating with a $40.00 target price, indicating strong analyst confidence.
  • Quarterly revenue of $4.40 million beat the consensus estimate of $4.09 million by $0.31 million.
  • Revenue growth was explosive at 198.9% year-over-year, demonstrating rapid business expansion.
  • EPS of ($0.04) beat the negative consensus estimate of ($0.05), showing improved profitability relative to expectations.
  • Vanguard Group increased its holdings by 12.2% in Q4, adding nearly 4 million shares to its portfolio.
  • Victory Capital Management surged its position by 1,632.5% in Q4, acquiring over 2.4 million shares.
  • Norges Bank and Defiance ETFs LLC both acquired new stakes valued at ~$38.9M and ~$34.3M respectively.
  • Institutional ownership stands at 35.38%, indicating significant confidence from major asset managers.
Risk Factors
  • The company reported a negative net margin of -2,789.71%, highlighting severe profitability challenges.
  • Return on equity was negative at -10.40%, reflecting capital inefficiency or high leverage relative to earnings.
  • Analysts forecast -$0.22 EPS for the current fiscal year, suggesting continued losses ahead.
  • Director Ray O. Johnson sold 84,944 shares (47.07% reduction) under a pre-arranged trading plan.
  • CFO Jeffrey A. Bertelsen sold 3,682 shares to cover tax withholding obligations on vested equity.
  • Insiders sold a total of 728,901 shares worth $17.5 million in the last ninety days.
  • Weiss Ratings maintains a Sell rating, albeit upgraded slightly from 'sell (e+)' to 'sell (d-)'.
Full Analysis
Benchmark initiated research coverage on Rigetti Computing (NASDAQ:RGTI) with a Buy rating and a $25.00 price target. This follows a series of recent analyst actions, including reiterated Buy ratings from Needham ($31.00 target) and Rosenblatt ($40.00 target), alongside mixed signals from Weiss Ratings and Northland Securities. The aggregate consensus among seven analysts is a Moderate Buy with an average price target of $32.00. Rigetti reported quarterly earnings on May 11th, beating EPS estimates of ($0.05) with actual results of ($0.04). Revenue reached $4.40 million, surpassing the $4.09 million consensus and representing a significant 198.9% year-over-year increase. Despite the revenue growth, the company posted a negative net margin of -2,789.71% and a negative return on equity of -10.40%, with analysts forecasting -$0.22 EPS for the current fiscal year. Insider activity shows mixed signals as Director Ray O. Johnson sold 84,944 shares under a pre-arranged Rule 10b5-1 plan, reducing his stake by 47.07%, while CFO Jeffrey A. Bertelsen sold a smaller portion to cover tax withholding obligations. Institutional ownership remains strong at 35.38%, with notable increases from Vanguard Group and Victory Capital Management in the fourth quarter, alongside new stakes acquired by Norges Bank and Defiance ETFs.