Quantum Boom or Bust? The Real Story Behind Rigetti Computing’s Wild Stock Moves

Rigetti Computing (NASDAQ: RGTI), a rising player in quantum computing, has been making headlines recently—not just for its technology but for the dramatic stock movements caused by insider trading and hedge fund activity. Investors are watching closely as company executives and major funds shift their positions. Could this signal something big for the future of the company?

Insiders Are Selling—Should You Be Worried?

One of the biggest red flags for investors is when company insiders start selling off their shares. Recently, there have been some notable transactions at Rigetti:

• Cathy McCarthy, a board director, sold 150,000 shares on March 11, 2025, at around $8 per share, cashing in over $1.2 million. She still holds 234,234 shares in the company, but such a large sale raises questions.
• David Rivas, Rigetti’s CTO, has been selling shares consistently. One of his recent sales was 9,273 shares at $1.97 each, netting him around $18,267.
• Founder Chad Rigetti also offloaded a significant number of shares, selling 389,471 shares in August 2022 for a total of approximately $1.6 million.

Insider sales don’t always mean trouble, but they do make investors wonder: Do these executives see trouble ahead? Or are they just cashing in on recent stock gains?

Hedge Funds Are Making Huge Bets—But Not All in the Same Direction

While insiders are selling, hedge funds and big institutional investors have been reshuffling their stakes in Rigetti. Some are pulling out, while others are doubling down:

• Deer Management Co. LLC completely exited Rigetti, selling all 21.5 million shares it previously held, worth around $329.3 million.
• Vanguard Group Inc. increased its stake by 81.7%, adding 5.2 million shares for a total investment of approximately $80.6 million.
• Invesco Ltd. made a surprising move, increasing its holdings by a whopping 7,367%, adding 4.5 million shares, now valued at nearly $69 million.

This mixed activity suggests that while some major investors are losing confidence, others see long-term potential in Rigetti’s technology.

Stock Price Has Been on a Rollercoaster Ride

Despite the insider selling, Rigetti’s stock has seen an incredible 1,600% increase year-to-date as of December 2024. Much of this momentum comes from the company’s strategic partnerships and breakthroughs in quantum computing. One major deal that boosted investor confidence was a $100 million collaboration with Quanta Computer to push forward superconducting quantum technology.

What This Means for Investors

The big question now is whether Rigetti’s stock is a goldmine or a ticking time bomb. Insider sales could indicate uncertainty, but the company’s quantum computing advancements and institutional investments suggest strong long-term potential.

For investors, the key is to watch how Rigetti executes its technology roadmap and whether it can maintain its stock momentum. With quantum computing set to disrupt industries, Rigetti could either skyrocket even further—or face challenges that lead to a major pullback.

One thing is for sure: the market is watching closely, and so should you.