Rigetti Computing’s Outlook Enhanced by Needham & Company

Rigetti Computing (NASDAQ:RGTI) recently received a positive endorsement from Needham & Company LLC, which reaffirmed its "buy" rating on the stock in a report released on Thursday. The investment firm has set a price target of $17.00, suggesting an impressive potential upside of 81.82% compared to the stock's closing price before the announcement.

In addition to Needham, other analysts have also shown optimism regarding Rigetti Computing. For instance, Benchmark increased its price target from $2.50 to $14.00 and awarded the stock a "buy" rating. This was highlighted in their report dated February 21st. Similarly, Craig Hallum initiated coverage on Rigetti Computing shares with a buy rating and a price target of $12.00 in a note on December 20th. Moreover, B. Riley raised their price target for the stock from $8.50 to $15.00, also giving it a buy rating as of February 14th.

Rigetti’s Stock Performance

On Thursday, Rigetti's shares opened at $9.35. The stock has had a remarkable journey over the past year, with a low of $0.66 and a high of $21.42. Currently, the company is valued with a market capitalization of $1.80 billion. It has a P/E ratio of -24.60, indicating that the company is currently operating at a loss, and a beta of 1.36, suggesting the stock has higher volatility compared to the market. Additionally, Rigetti Computing boasts a quick ratio and current ratio of 4.84, demonstrating its strong liquidity position.

Rigetti Computing also recently released its quarterly earnings report, revealing an EPS of ($0.08), which aligns with analysts' consensus estimates. The company faced challenges with a negative net margin of 509.58% and a negative return on equity of 51.56%. Its revenue for the quarter was reported at $2.27 million, slightly below expectations of $2.40 million. A year ago, the company posted an EPS of ($0.04), highlighting the steep losses they continue to face. Analysts project an EPS of -0.34 for the current fiscal year.

Insider Activity and Ownership

In related corporate activity, Director Michael S. Clifton sold 125,000 shares of his stock in Rigetti on December 9th for an average price of $5.03, totaling $628,750. Following this sale, Clifton retains ownership of 1,063,864 shares, valued at approximately $5.35 million. Post-transaction, his ownership in the company has reduced by 10.51%. This transaction has been disclosed in a filing with the Securities & Exchange Commission, where it is accessible for public viewing. Insiders currently hold about 2.81% of Rigetti's stock.

Institutional Investments in Rigetti

Recent trends in institutional trading show a mix of increased and decreased stakes in Rigetti Computing by various hedge funds and institutional investors. For example, Charles Schwab Investment Management Inc. boosted its investment in Rigetti by 14.4% during the third quarter, now owning 1,149,934 shares valued at $901,000 after acquiring an additional 144,742 shares. Likewise, Penserra Capital Management LLC raised its stake by 9.8%, owning 4,553,633 shares worth $3,565,000. State Street Corp also increased its holdings by 12.9%, while Jane Street Group LLC expanded its position by 23.8% in the same period. Barclays PLC significantly upped its investment in Rigetti by 275.6%. Together, institutional investors represent 35.38% of the company's stock.

Company Profile of Rigetti Computing

Rigetti Computing, through its subsidiaries, specializes in developing quantum computers and superconducting quantum processors. The company offers cloud-based quantum processing units, including a 9-qubit chip and the Ankaa-2 system under its Novera brand, providing access to its quantum computing capabilities through a service model.

Rigetti, Stocks, Investment