Rigetti Computing (NASDAQ:RGTI) Shares Down 7.9% - Here's What Happened

Rigetti Computing, Inc. (NASDAQ:RGTI) witnessed a notable decline in its stock price, dropping 7.9% during mid-day trading on Tuesday. The stock reached a low of $10.79 before closing at $10.88. During the trading session, approximately 29,394,938 shares exchanged hands, marking an 81% decrease compared to its average daily volume of 152,552,203 shares. The previous closing price was $11.81.

Wall Street Analyst Insights

Recently, several brokerages have issued comments about Rigetti Computing's stock. Needham & Company LLC reaffirmed a "buy" rating, setting a price target of $2.00 for the shares. Benchmark also reiterated its "buy" rating and established a price target of $2.50. B. Riley boosted its price target significantly from $8.50 to $15.00 while maintaining a "buy" rating. Additionally, Craig Hallum initiated coverage of Rigetti Computing with a "buy" rating and a target price of $12.00. Overall, five equity research analysts have rated the stock as a buy, leading to an average rating of "Buy" and a target price of $7.00, as per MarketBeat data.

Financial Overview

The company has a low debt-to-equity ratio of 0.02, although its current and quick ratios stand at 4.84, indicating strong liquidity. Rigetti Computing's market capitalization is approximately $2.02 billion, with a price-to-earnings ratio of -27.68 and a beta of 1.26. Its fifty-day moving average is $12.22, and the 200-day moving average stands at $5.15.

Insider Activity

In insider trading news, Director Michael S. Clifton sold 125,000 shares on November 25 at an average price of $3.00, resulting in a total transaction of $375,000. Following this sale, Clifton retains ownership of 1,313,864 shares valued at about $3,941,592, reflecting an 8.69% decrease in his stake. In the past three months, insiders have sold a total of 375,000 shares for a value of $1,503,750, with insiders holding 2.81% of the company's stock.

Institutional Investor Movements

Several institutional investors have recently adjusted their positions in Rigetti Computing. Vanguard Group Inc. increased its stake by 81.7% during the fourth quarter, now owning 11,746,361 shares valued at $179,249,000 after acquiring an additional 5,280,128 shares. Invesco Ltd. raised its holdings impressively by 7,367.2%, now owning 4,580,317 shares worth $69,896,000. JPMorgan Chase & Co. enhanced its position by 3,295.7%, holding 2,117,563 shares valued at $32,314,000 after acquiring an additional 2,055,203 shares. Nuveen Asset Management LLC lifted its stake by 418.6% to 999,617 shares valued at $15,254,000. Geode Capital Management LLC also boosted its position by 20.6%, now owning 3,621,829 shares valued at $2,837,000. Institutional investors and hedge funds currently hold 35.38% of Rigetti Computing's stock.

Company Overview

Rigetti Computing, Inc., through its subsidiaries, focuses on building quantum computers and superconducting quantum processors. The company provides cloud-based services offering access to quantum processing units, including a 9-qubit chip and its Ankaa-2 system under the Novera brand.

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