Rigetti Computing, Inc.

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Slightly Bullish +25

Rigetti Computing (NASDAQ:RGTI) Now Covered by Wedbush

📈 Wedbush initiated coverage on Rigetti Computing (NASDAQ:RGTI) with an "outperform" rating and a $40.00 price target.

📊 Rosenblatt Securities reaffirmed a "buy" rating with a $40.00 target, while Mizuho set an "outperform" rating with a $27.00 target.

📉 The consensus analyst rating is currently "Moderate Buy" with an average price target of $32.00 based on seven buy, four hold, and one sell ratings.

💰 Rigetti reported Q1 earnings of ($0.04) EPS, beating the negative consensus estimate of ($0.05) by $0.01.

📈 Quarterly revenue reached $4.40 million, representing a 198.9% year-over-year increase compared to analysts' expectations of $4.09 million.

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

📉 CTO David Rivas sold 499,328 shares worth approximately $12.68 million, reducing his ownership by 60.50% to cover tax obligations.

💼 CFO Jeffrey A. Bertelsen sold 3,682 shares worth about $84,502, resulting in a 2.10% decrease in his direct stock ownership.

📉 Over the last quarter, company insiders collectively sold 728,901 shares valued at $17.5 million.

🏦 Institutional investors and hedge funds hold a combined 35.38% stake in Rigetti Computing as of the latest filings.

📈 Parallel Advisors LLC increased its position by 403.2% to own 1,087 shares valued at $32,000 during the third quarter.

📈 Heritage Wealth Advisors boosted its stake by 454.3% in the fourth quarter, now holding 1,164 shares worth $26,000.

📈 Larson Financial Group LLC raised its position by 138.4% in the fourth quarter to own 1,218 shares valued at $27,000.

🤖 Rigetti Computing is a quantum computing pioneer founded in 2013 that designs superconducting quantum processors and complementary software stacks.

☁️ The company's core offering includes the Quantum Cloud Services (QCS) platform for accessing quantum processing units via the cloud.

Bullish Signals
  • Wedbush initiated coverage on Rigetti Computing (NASDAQ:RGTI) with an 'outperform' rating and set a $40.00 price target.
  • Rosenblatt Securities reaffirmed a 'buy' rating with a $40.00 price target, while Needham & Company LLC restated a 'buy' rating with a $31.00 price objective.
  • The company reported quarterly revenue of $4.40 million, which beat analyst estimates of $4.09 million and represented a 198.9% year-over-year increase.
  • Rigetti Computing topped consensus earnings expectations by reporting EPS of ($0.04) versus an estimated loss of ($0.05).
  • The stock currently holds a consensus 'Moderate Buy' rating from seven analysts with a consensus target price of $32.00.
  • Institutional investor Parallel Advisors LLC increased its stake by 403.2% in the third quarter, now owning shares valued at $32,000.
  • Heritage Wealth Advisors boosted its position by 454.3% in the fourth quarter, acquiring additional shares worth $26,000.
  • Larson Financial Group LLC increased its holdings by 138.4% in the fourth quarter, purchasing an additional 707 shares valued at $27,000.
Risk Factors
  • The company reported a negative net margin of 2,789.71% and a negative return on equity of 10.40%, indicating significant financial losses despite revenue growth.
  • Analysts anticipate the company will post an EPS of -0.22 for the current year, projecting continued profitability challenges.
  • Insiders sold a total of 728,901 shares worth approximately $17.55 million in the last quarter to cover tax withholding obligations, representing a significant reduction in insider ownership.
  • Mizuho Securities lowered its price target from $33.00 to $27.00, reflecting a bearish shift in analyst sentiment despite an 'outperform' rating.
  • Northland Securities initiated coverage with a 'market perform' rating and a low $20.00 price objective, suggesting limited near-term upside potential.
Full Analysis
Wedbush Securities initiated coverage on Rigetti Computing (NASDAQ:RGTI) with an "outperform" rating and a $40.00 price target, joining a growing list of analysts who have recently weighed in on the quantum computing firm. Other notable research firms include Rosenblatt Securities, which reaffirmed a "buy" rating with a $40.00 target, and Mizuho, which maintained an "outperform" rating but lowered its target price from $33.00 to $27.00. The consensus among seven buy ratings, four hold ratings, and one sell rating currently stands at a "Moderate Buy" with an average target price of $32.00. Previous coverage includes Northland Securities initiating with a "market perform" rating at $20.00, Needham & Company restating a "buy" at $31.00, and Wall Street Zen upgrading the stock from "sell" to "hold." Financially, Rigetti Computing reported earnings for the quarter ending May 11th, posting EPS of ($0.04), which beat the consensus estimate of ($0.05). The company generated revenue of $4.40 million, representing a significant 198.9% year-over-year increase compared to the previous period, though it recorded a negative net margin of 2,789.71% and a negative return on equity of 10.40%. Analysts anticipate the company will report an EPS of -0.22 for the current year. Despite these financial metrics, institutional interest remains active; hedge funds and other investors collectively own 35.38% of the company's stock, with recent activity including Parallel Advisors LLC increasing its stake by 403.2% and Heritage Wealth Advisors boosting its position by 454.3%. Insider trading activity has also been significant over the last quarter, with executives selling shares to cover tax withholding obligations related to equity vesting. CTO David Rivas sold 499,328 shares on May 29th at an average price of $25.40, reducing his ownership by 60.50% and leaving him with approximately 325,945 shares valued at $8.28 million. CFO Jeffrey A. Bertelsen sold 3,682 shares on May 22nd at $22.95 per share, resulting in a 2.10% decrease in his holdings. In total, insiders have sold 728,901 shares worth approximately $17.55 million over the last quarter, while maintaining an overall ownership of 1.60% of the company's stock. Founded in 2013 by CEO Chad Rigetti, the company focuses on designing superconducting quantum processors and offers Quantum Cloud Services (QCS) to enable access to quantum processing units via the cloud.