Shares of Rigetti Computing (RGTI, Financial) experienced a downturn, dropping by 81 cents to settle around $15.27. The options activity for this stock was notably high, with over 197,000 contracts changing hands, more than double the usual volume. There was a higher preference for puts over calls, with the put/call ratio standing at 1.38, a significant increase from the typical 0.38 level.
The implied volatility (IV30) for RGTI saw a slight reduction, falling by 1.39 to reach 101.43, positioning it in the lower quartile of the annual range. This level of implied volatility suggests an expected daily price fluctuation of $0.98. Moreover, the put-call skew saw a steepening, reflecting a growing interest in securing downside protection.
Looking ahead, Rigetti Computing is set to announce its earnings soon, although the precise date remains unspecified. Option markets are anticipating a 50% likelihood of a movement exceeding 0.0% or $0.00. Investors are encouraged to explore advanced investing insights with offerings like TipRanks Premium, currently available at a 50% discount.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Rigetti Computing Inc (RGTI, Financial) is $15.17 with a high estimate of $18.00 and a low estimate of $14.00. The average target implies an upside of 0.14% from the current price of $15.15. More detailed estimate data can be found on the Rigetti Computing Inc (RGTI) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Rigetti Computing Inc's (RGTI, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Rigetti Computing Inc (RGTI, Financial) in one year is $0.80, suggesting a downside of 94.72% from the current price of $15.145. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Rigetti Computing Inc (RGTI) Summary page.
RGTI Key Business Developments
Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Rigetti Computing Inc (RGTI, Financial) has been selected to participate in DARPA's quantum benchmarking initiative, advancing their utility scale quantum computer concept.
- The company received an AFOSR award to further develop their breakthrough chip fabrication technology, ABAA, in collaboration with prestigious institutions.
- Rigetti Computing Inc (RGTI) was awarded three Innovate UK Quantum Miss Pilot Awards to advance superconducting quantum computing.
- The company successfully demonstrated optical control of a superconducting qubit, which could significantly aid in scaling quantum systems.
- Rigetti Computing Inc (RGTI) closed a strategic investment deal with Quanta Computer Inc, securing approximately $35 million.
Negative Points
- Revenues in the first quarter of 2025 were $1.5 million, a decrease from $3.1 million in the first quarter of 2024.
- Gross margins dropped to 30% in Q1 2025 from 49% in Q1 2024, partly due to lower margin contracts.
- Operating expenses increased to $22.1 million in Q1 2025 from $18.1 million in the prior year, driven by salary increases and stock compensation expenses.
- The company reported an operating loss of $21.6 million for Q1 2025, up from $16.6 million in the previous year.
- The passage and appropriation of the NQI reauthorization bill, which is crucial for funding, has been delayed, impacting potential sales and funding opportunities.
