Rigetti Computing Inc. (NASDAQ: RGTI) disclosed a notable insider transaction on Thursday, as Chief Financial Officer Jeffrey Bertelsen sold 25,000 shares for approximately $375,010. However, the sale did not reduce his direct common-stock holdings, according to a new SEC Form 4 filing.
The transaction was structured as an option exercise followed by a same-day sale. Bertelsen first exercised 25,000 options at a strike price of $0.60 per share, costing $15,000, and then sold the same number of shares at an average price of $15.0004. His direct common-stock balance remained unchanged at 168,067 shares before and after the transaction. The filing also indicates that Bertelsen retains 256,250 options, underscoring his ongoing stake in the company.
The sale was executed under a Rule 10b5-1 trading plan adopted on June 4, indicating a pre-scheduled transaction rather than an opportunistic move. A separate Form 144 notice lists Piper Sandler as the broker and discloses an earlier sale of 3,860 shares on August 25 for $65,030.77. These details suggest the latest disposal is not necessarily a bearish signal from insiders.
Rigetti's stock has been volatile in recent weeks. The shares closed at $16.53 on August 6, peaked at $18.82 on August 14, and settled at $15.20 on September 4. That closing price was 8.0% below the August 6 level and 19.2% below the August 14 peak. At the current share price, Rigetti's equity value is approximately $5.07 billion, based on 333.77 million shares outstanding. After subtracting cash and available-for-sale investments of $541.3 million (as of June 30), the enterprise value is roughly $4.53 billion.
This valuation is extremely rich relative to the company's revenue. In the second quarter, Rigetti generated $5.138 million in revenue, which annualizes to $20.552 million. Dividing the enterprise value by that annualized figure yields a multiple of approximately 220.5 times revenue. For context, the company's operating loss in Q2 was $28.062 million, which is 5.5 times its quarterly revenue. Interest income of $5.058 million nearly matched sales, highlighting the significant cash pile that supports the balance sheet.
Rigetti is a player in the quantum computing race, with its 108-qubit Cepheus system achieving 99.1% median two-qubit fidelity. Management is targeting around 1,000 qubits, 99.9% fidelity, and sub-50-nanosecond gate times over the next three years. However, these are engineering goals, not revenue milestones. A letter of intent with the U.S. Commerce Department contemplates up to $100 million in funding over three years, but definitive agreements may not be signed, and the government would receive equity in return.
CEO Subodh Kulkarni expressed optimism that the potential investment would allow Rigetti to tackle key scaling bottlenecks more rapidly. Yet, the uncertainty around the deal and the possibility of equity dilution remain overhangs for existing shareholders. Analysts, meanwhile, are broadly optimistic but with wide-ranging price targets. The low target is $18, the average is $28.71, and the high is $40, implying potential returns of 18.4%, 88.9%, and 163.2%, respectively, from Friday's close. Benchmark's David Williams once noted that valuing quantum names is more art than science.
For investors, the insider filing changes little. The critical catalysts are whether the government contract materializes, whether systems get delivered and paid for, and whether technical milestones are met. Until then, the stock's valuation leaves little room for error. A setback in any of these areas could trigger a sharp repricing, especially given the speculative nature of the sector.
Nasdaq will be closed on Monday for Labor Day, with trading resuming Tuesday at 9:30 a.m. EDT.
