Clifton Michael S., a director at Rigetti Computing, Inc. (NASDAQ:RGTI), recently sold 125,000 shares of common stock, according to a recent SEC filing. The shares were sold at a price of $3.00 each, totaling $375,000. Following this transaction, Clifton retains ownership of 1,313,864 shares in the company. The sale was executed under a prearranged trading plan established on November 16, 2023.
In other recent news, Rigetti Computing, Inc. reported its third-quarter earnings for 2024, highlighting significant progress in quantum computing despite financial challenges. The company's revenue decreased to $2.4 million from $3.1 million in the same quarter of the previous year, and gross margins fell to 51%. The net loss for the quarter was $14.8 million, an improvement from the previous year's loss of $22.2 million.
Rigetti plans to introduce a 36-qubit system by mid-2025 and a system with over 100 qubits by the end of 2025. The company is focusing on securing government contracts and has collaborations with Riverlane and NVIDIA (NASDAQ:NVDA). These partnerships aim to enhance quantum error correction and hybrid computing.
Despite a drop in revenue, the company's financial position remains solid, with sufficient cash to support operations through early 2026. Rigetti is optimistic about the National Quantum (NASDAQ:QMCO) Initiative Reauthorization Act and is targeting the delivery of its 84-qubit Ankaa 3 system by the end of 2024. Finally, the company sees a projected $7.6 billion total addressable market over the next five years primarily for on-premise quantum computers.
InvestingPro Insights
The recent insider sale by Rigetti Computing's director Clifton Michael S. comes amid a period of significant stock price volatility for the quantum computing company. According to InvestingPro data, RGTI has experienced a remarkable 124.59% price return over the past month and an even more impressive 189.67% over the last three months. This volatility aligns with an InvestingPro Tip indicating that the stock generally trades with high price volatility.
Despite the recent stock performance, InvestingPro Tips highlight that Rigetti Computing is quickly burning through cash and is not expected to be profitable this year. This context may provide insight into why an insider might choose to sell shares at this time. The company's financial health shows mixed signals, with one InvestingPro Tip noting that RGTI holds more cash than debt on its balance sheet, while another points out that liquid assets exceed short-term obligations.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Rigetti Computing, providing a deeper understanding of the company's financial position and market performance. These insights could be particularly valuable given the company's current trajectory and the quantum computing sector's evolving landscape.
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