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In a recent transaction, Alissa Fitzgerald, a director at Rigetti Computing, Inc. (NYSE:RGTI), sold 20,000 shares of the company's common stock, totaling $16,400. According to the details provided, the shares were sold at a weighted average price of $0.82, with individual sales prices ranging from $0.8184 to $0.82.
The sale was executed in accordance with a Rule 10b5-1 trading plan, which was previously adopted by Fitzgerald on September 13, 2023. This type of plan allows corporate insiders to set up a predetermined schedule for buying or selling shares at a time when they are not in possession of material non-public information, providing a defense against claims of insider trading.
After the sale, Fitzgerald still owns a substantial number of shares in Rigetti Computing, specifically 173,667 shares of common stock, maintaining a significant stake in the company.
Investors tracking insider transactions often pay close attention to such sales as they may provide insights into an insider's perspective on the company's current valuation or future prospects. However, it should be noted that there can be many reasons for an insider to sell shares, and such transactions do not necessarily indicate a lack of confidence in the company.
Rigetti Computing, known for its involvement in the quantum computing industry, has seen varying levels of trading activity, and insider transactions like these are closely watched by market participants for potential signals. The company's shares are publicly traded on the New York Stock Exchange under the ticker symbol RGTI.
In other recent news, Rigetti Computing, a leader in the quantum computing industry, has reported consistent progress in the development of its 84-qubit Ankaa-3 system. The company plans to launch this advanced system by the end of 2024, targeting over 99 percent fidelity in 2-qubit gates. Despite a minor decrease in revenue and gross margins compared to the same period last year, Rigetti has successfully raised significant funds, maintaining a robust cash position with enough capital projected until mid-Q1 2026.
On the financial front, Rigetti disclosed Q2 2024 revenues of $3.1 million, a slight dip from $3.3 million in Q2 2023. Gross margins were reported at 64%, a decrease from 82% the previous year. However, the company's net loss improved, decreasing to $12.4 million in Q2 2024 from $17 million in Q2 2023. Through its ATM program, Rigetti raised $27.8 million and reported a strong $100.5 million in cash and investments.
These developments highlight Rigetti's commitment to advancing quantum computing technology. The company is also optimistic about the increase in government funding for quantum computing, which is expected to boost revenues in the coming years. As the company navigates the challenges of bringing advanced quantum technology to the market, these recent developments position it as a noteworthy player in the future of the quantum computing industry.
InvestingPro Insights
Amidst the insider trading activity at Rigetti Computing, Inc. (NYSE:RGTI), investors are evaluating the company's financial health and market performance. According to InvestingPro, Rigetti holds more cash than debt on its balance sheet, which can be a positive sign of financial stability. Yet, it's important to note that the company is quickly burning through cash, as highlighted by one of the InvestingPro Tips.
InvestingPro data sheds light on the company's current market position with a market capitalization of $151.12 million. The company's Price to Earnings (P/E) Ratio stands at -1.74, reflecting that the company is not currently profitable, a sentiment echoed by analysts who do not anticipate Rigetti will be profitable this year. Additionally, the stock price has experienced significant volatility, with a 1 Month Price Total Return of -26.83%, and a 1 Year Price Total Return of -65.34%, indicating a challenging period for the stock.
For investors seeking more in-depth analysis, InvestingPro offers a wealth of additional tips, including insights on the company's free cash flow yield, liquid assets, and dividend payments. In total, there are 12 InvestingPro Tips available for Rigetti Computing, which can be accessed for further detailed investment considerations.
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