Rigetti Computing (NASDAQ:RGTI) Trading 12.4% Higher - Is It Still a Buy?

Rigetti Computing, Inc. (NASDAQ:RGTI) saw a significant rise in its stock value, with shares increasing by 12.4% during trading on Friday. The stock reached a high of $19.35 before closing at $17.35. A total of approximately 167,099,343 shares were traded, marking a remarkable 689% increase compared to the average daily volume of 21,184,369 shares. This follows a previous closing price of $15.44.

Analysts Set New Price Targets

Several research analysts have recently provided their insights on RGTI shares. Benchmark reiterated a "buy" rating and set a price target of $2.50 for Rigetti Computing. Meanwhile, B. Riley enhanced their price target from $3.50 to $4.00, also rating the stock as a "buy." Craig Hallum initiated coverage on Rigetti, giving it a $12.00 price objective and a "buy" rating. Additionally, Needham & Company LLC reaffirmed a "buy" rating with a target price of $2.00. Overall, five analysts have provided a buy rating, leading to a consensus rating of "Buy" with an average price target of $4.80.

Financial Metrics of Rigetti Computing

The financial ratios for Rigetti indicate a quick ratio of 4.84, a current ratio of 4.84, and a low debt-to-equity ratio of 0.02. The company has a market capitalization of $3.31 billion, a negative price-to-earnings ratio of -45.26, and a beta of 2.72. The stock's 50-day moving average stands at $3.85, while the 200-day moving average is $1.93.

Insider Transactions

In other developments, major shareholder Bessemer Venture Partners X. L. sold 1,286,114 shares on November 11 for an average price of $1.52, totaling approximately $1.95 million. This sale reduced their holdings by 6.16%. Director Michael S. Clifton also sold 125,000 shares at an average price of $4.00 on December 6, equivalent to $500,000, which decreased his ownership by 9.51%. In the past 90 days, insiders have sold 2,955,125 shares for an approximate total of $5.49 million, resulting in insider ownership of 2.81% of the company’s stock.

Hedge Fund Movements

Recently, various hedge funds have adjusted their stakes in Rigetti Computing. SG Americas Securities LLC acquired a new position during the second quarter worth $25,000. Caprock Group LLC invested $42,000, and Arete Wealth Advisors LLC purchased shares worth $45,000 in the third quarter. JPMorgan Chase & Co. increased its stake by 3.4%, bringing its total to 62,360 shares, valued at $49,000 after acquiring an additional 2,045 shares. Additionally, Point72 DIFC Ltd invested around $88,000 in Rigetti during the second quarter. Overall, institutional investors hold about 35.38% of the company’s stock.

Company Overview

Rigetti Computing is involved in creating quantum computers and superconducting quantum processors. The company offers cloud services featuring quantum processing units, including their 9-qubit chip and the Ankaa-2 system under the Novera brand. They also provide access to their quantum computers through a quantum computing service.

Final Thoughts

Investors should consider all available information and market conditions before making any investment decisions related to Rigetti Computing. While analysts maintain a "buy" rating, it is essential to weigh this against other opportunities in the market.

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