Rigetti Computing, a key player in the quantum computing industry, saw its stock climb 7% recently, sparking curiosity among investors. The movement comes at a time when company insiders have been offloading shares while big institutional investors are increasing their stakes. So, what’s really going on?
Stock on the Rise: What’s Driving the Momentum?
As of February 28, 2025, Rigetti Computing (NASDAQ: RGTI) closed at $8.46, marking a 5.35% gain for the day. The stock traded between $7.77 and $8.75, with a massive volume of about 59 million shares exchanging hands. This increased activity suggests growing interest in the company, but whether it’s purely speculative or based on solid fundamentals remains a question.
Why Are Insiders Selling?
Recent filings show that company insiders, particularly Director Michael S. Clifton, have been selling significant amounts of stock:
- On December 6, 2024, Clifton sold 125,000 shares at $4.00 each, cashing in $500,000.
- On December 9, he sold another 125,000 shares at $5.03, totaling $628,750.
- On December 11, he offloaded another 125,000 shares at $6.00, making $750,000.
Insider selling isn’t always a red flag—executives sell for a variety of reasons, including personal financial planning. However, large and frequent sales can sometimes signal concerns about the stock’s valuation or future prospects.
Big Investors Are Buying—What Do They See?
On the flip side, institutional investors appear to be bullish on Rigetti:
- Rhumbline Advisers increased its holdings by 15.8% in the last quarter, adding 31,895 shares and bringing its total stake to 234,075 shares (worth about $3.57 million).
- JPMorgan Chase & Co. also upped its position by 3.4%, bringing its total holdings to 62,360 shares.
Institutions typically invest with a long-term perspective, suggesting that they see growth potential in Rigetti’s quantum computing advancements.
Analysts See More Room to Grow
Wall Street analysts are becoming increasingly optimistic about Rigetti’s future:
- Needham & Company raised its price target from $2.00 to $17.00, maintaining a “Buy” rating.
- Benchmark boosted its target from $2.50 to $14.00, also recommending a “Buy.”
Such upgrades indicate that experts see strong potential for Rigetti, possibly due to its recent progress in developing quantum processors.
Quantum Computing: Rigetti’s Big Play
Rigetti Computing makes superconducting quantum processors and offers cloud-based quantum computing services. Its latest advances—including the 9-qubit chip and Ankaa-2 system—put it in direct competition with IBM and Google in the race for quantum supremacy.
What’s Next?
Rigetti is at a crossroads. Some executives are cashing out, but major investors and analysts seem to be betting on the company’s long-term future.
For investors, though, the bigger question is whether Rigetti can translate its technology into lasting growth. Quantum computing is still a few years away, but if the company can establish itself as a leader, its stock has much farther to run.
