RGTI Stock Alert: Why Are Rigetti Computing Insiders Dumping Shares?

Insiders are cashing out while retail investors pile in—classic Wall Street maneuver.

The Selling Spree

Multiple executives just filed Form 4s showing substantial stock sales. The timing raises eyebrows—right after that quantum computing breakthrough announcement sent shares soaring 40% last month.

What They Know That You Don't

Insiders typically sell for three reasons: diversification, bill payments, or seeing something ugly in the financials. Given the recent rally, smart money's betting it's not the first two.

Quantum Hype vs Financial Reality

Rigetti's burning through cash faster than a Bitcoin miner during a bull run. Their last earnings showed cash reserves dwindling while R&D costs exploded. Sometimes the math doesn't need quantum computing to reveal the obvious.

When the people building the company start selling, maybe they know the quantum leap forward is further out than the PR team claims. Or maybe they just want new yachts—in crypto, we call that 'taking profits.'

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Chief Financial Officer Jeffrey Bertelsen and Chief Technology Officer David Rivas sold a combined total of 45,637 Rigetti shares, raising questions about the company’s growth prospects.

Insider share sales usually indicate caution about a company’s future, but can also happen for personal reasons. Hence, it is important to watch these trades for clues on the company’s growth expectations.

RGTI Stock Price Movement

Rigetti’s stock has surged 54.6% year-to-date and an impressive 757% over the past year, driven by new commercial deals and rising investor confidence in its quantum computing technology.

Rigetti uses superconducting qubits that require extremely low temperatures to maintain quantum states. This sets it apart from rival IonQ’s (IONQ) trapped-ion technology and D-Wave’s (QBTS) quantum annealing approach.

A Closer Look at Rigetti’s Insider Transactions

According to the FORM 4 filed with the SEC on November 21, Bertelsen sold 3,702 RGTI shares and Rivas sold 41,935 shares, amounting to a total of $1.20 million. Shares were sold in multiple tranches at weighted average prices ranging between $26.01 and $26.3528 apiece. Despite these sales, Bertelsen still holds roughly $4.24 million worth of Rigetti stock, and Rivas holds $16.24 million of RGTI shares.

RGTI stock currently has a Negative Insider Confidence Signal on TipRanks, based on Informative Sell transactions worth $1.2 million, undertaken in the last three months.

Is RGTI Stock a Good Buy?

Analysts remain divided about Rigetti Computing’s long-term outlook. On TipRanks, RGTI stock has a Moderate Buy consensus rating based on five Buys and two Hold ratings. The average Rigetti Computing price target of $40.60 implies 72.1% upside potential from current levels.