Rigetti Computing (NASDAQ:RGTI) Shares Gap Up - Still a Buy?

On Tuesday, Rigetti Computing, Inc. (NASDAQ:RGTI) saw its shares gap up significantly before the market opened. The stock, which previously closed at $12.45, opened at $13.45. After trading, Rigetti Computing shares were last seen at $13.07, with impressive trading volume of 29,354,584 shares.

Analyst Ratings and Market Insights

Several analysts have provided feedback on Rigetti Computing. Notably, Craig Hallum initiated coverage on December 20 with a "buy" rating and a price target of $12.00. Meanwhile, Benchmark reaffirmed a "buy" rating with a lower price target of $2.50. B. Riley raised their price target from $4.00 to $8.50 while maintaining their "buy" rating as of January 14. Needham & Company LLC also reiterated a "buy" rating with a price target of $2.00. Overall, five analysts currently recommend the stock with a consensus average rating of "Buy" and a price target of $5.70, according to MarketBeat data.

Current Stock Performance

As for Rigetti's trading performance, the stock has increased by 0.6%, giving it a market capitalization of $2.41 billion. The company’s price-to-earnings ratio stands at -32.99, indicating a loss rather than a profit. Factors such as a current ratio and quick ratio both at 4.84 suggest good short-term financial health, with a low debt-to-equity ratio of 0.02. The 50-day and 200-day moving averages are reported at $9.15 and $3.86, respectively.

Insider Activity Updates

In insider news, Bessemer Venture Partners X. L., a major shareholder, sold 1,286,114 shares on November 11, with a sale price averaging $1.52. This transaction amounted to a total of approximately $1.95 million and has resulted in a 6.16% decrease in their shareholding. In addition, Director Michael S. Clifton sold 125,000 shares at an average price of $5.03 on December 9, totaling around $628,750, also reflecting a 10.51% decrease in his holdings. In summary, insiders have sold an aggregate of 2,955,125 shares worth about $5.49 million in the last quarter, accounting for about 2.81% of the company’s stock being held by insiders.

Institutional Investment Trends

Looking at institutional investors, various hedge funds have altered their stakes in Rigetti Computing. For instance, Arete Wealth Advisors LLC took a new position worth about $45,000 in the most recent quarter. Similarly, Spire Wealth Management bought in during the fourth quarter, investing approximately $46,000. SG Americas Securities LLC increased their stake by 166.9% and now holds 63,202 shares valued at $49,000. Notably, JPMorgan Chase & Co. also raised their position by 3.4%, acquiring an additional 2,045 shares. Currently, 35.38% of Rigetti's shares are owned by institutional investors.

About Rigetti Computing

Rigetti Computing, Inc. specializes in building quantum computers and superconducting quantum processors. Their offerings include cloud-based quantum processing units, such as the 9-qubit chip and the Ankaa-2 system, marketed under the Novera brand. Their services are available through quantum computing as a service.

Investment Considerations

Before investing, it's crucial to analyze the current landscape. Despite a general "Buy" rating from analysts, some top-rated analysts recommend other stocks over Rigetti Computing, suggesting investors should do thorough research before making a decision.

Rigetti, Stocks, Investors