Rigetti Computing (NASDAQ:RGTI) Shares Gap Down - What's Next?

On Tuesday, Rigetti Computing, Inc. (NASDAQ:RGTI) saw a notable decrease in its share price as it gapped down at the market opening. The stock had previously closed at $11.81 but opened lower at $11.37. Following this drop, Rigetti's shares traded at about $10.92, with a significant trading volume of 16,518,870 shares.

Analyst Opinions on Rigetti Computing

Several Wall Street analysts have recently shared their views on RGTI. For instance, Benchmark reaffirmed a "buy" rating for Rigetti Computing, setting a target price of $2.50 in a research report dated November 14. Additionally, Needham & Company LLC also maintained a "buy" rating with a target price of $2.00 reported on November 13. Furthermore, Craig Hallum initiated coverage for Rigetti, also assigning a "buy" rating but at a higher target price of $12.00. Lastly, B. Riley raised their price target significantly from $8.50 to $15.00 while retaining a "buy" rating for the stock. Overall, five investment analysts ratings point toward a buy recommendation, while the consensus rating for Rigetti Computing stands at "Buy" with an average target price suggested at $7.00.

Stock Performance Insights

The shares of Rigetti Computing have recently dropped about 10.9% in value. Financial metrics for the company show a low debt-to-equity ratio of just 0.02, along with a quick ratio and a current ratio both at 4.84. The fifty-day simple moving average is at $12.22, while the two-hundred-day average is notably lower at $5.15. Rigetti Computing currently has a market capitalization of $2.02 billion, with a P/E ratio of -27.68 and a beta of 1.26, indicating its relative volatility in comparison to the market.

Insider Trading Activity

In news related to insider trading, on December 6, Director Michael S. Clifton executed the sale of 125,000 shares at an average price of $4.00 per share, totaling $500,000. This activity led to a 9.51% decrease in the director's position, leaving him with approximately 1,188,864 shares valued at about $4,755,456. Over the past 90 days, insiders have disposed of 375,000 shares worth $1,503,750, and currently, insiders hold about 2.81% of the total shares.

Institutional Investor Actions

Recent activity among institutional investors reveals adjustments in their positions regarding Rigetti Computing. Allworth Financial LP increased its stake by 14.9% in the fourth quarter, now owning 11,604 shares worth approximately $161,000. Signaturefd LLC made a new investment position in Rigetti with a valuation near $25,000 during the same timeframe. Meanwhile, Legal & General Group Plc also increased its stake by 14.9%, currently holding 14,051 shares valued at around $214,000. Other investors, such as EverSource Wealth Advisors and JPMorgan Chase & Co., have also changed their holdings in Rigetti. Overall, institutional investors collectively own 35.38% of the company’s stock.

Company Overview

Rigetti Computing, Inc., through its subsidiaries, is engaged in building quantum computers and superconducting quantum processors. The company offers quantum processing units, including a 9-qubit chip and the Ankaa-2 system under the Novera brand. It also provides access to its quantum computers via quantum computing as a service.

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