Shares of Rigetti Computing Inc (NASDAQ:RGTI) are trading lower Friday, extending a recent downturn as the broader quantum computing sector cools off from a massive rally.
What Too Know: Headwinds for Rigetti intensified this week following reports that CEO Subodh Kulkarni sold his entire 1 million-share stake, a move that has raised significant investor concern about leadership’s conviction.
The sale has raised questions about insider conviction in the company’s long-term prospects, creating skepticism that is overshadowing previous positive developments.
The current weakness marks a sharp reversal for the company. The stock had surged over 5,000% in the past year, propelled by developments including a contract with the U.S. Air Force and a partnership with Nvidia. However, the focus has now shifted from market hype to scrutiny over insider commitment and the challenging path to commercial viability.
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Benzinga Edge Rankings: According to Benzinga Edge Rankings, despite the recent pullback, RGTI stock maintains a near-perfect Momentum score of 99.93.
RGTI Price Action: Rigetti shares were down 1.46% at $47.22 at the time of publication on Friday, according to data from Benzinga Pro. The stock is trading within its 52-week range of 91 cents to $58.15.
From a technical perspective, Rigetti’s current price is significantly above both its 50-day moving average of $25.64 and its 200-day moving average of $15.07, by 81.8% and 209.3%, respectively.
This positioning suggests a robust bullish trend, although the stock’s relative strength index (RSI) at 65.86 indicates it is approaching overbought territory, which could lead to increased volatility in the near term.
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How To Buy RGTI Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Rigetti Computing’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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