David Rivas, the Chief Technology Officer of Rigetti Computing, Inc. (NASDAQ:RGTI), has recently engaged in transactions involving the company's common stock, as reported in a recent SEC filing. On March 18, 2024, Rivas sold a total of 9,273 shares of Rigetti Computing at an average price of $1.97 per share, resulting in total proceeds of $18,267.
The sales were part of nondiscretionary transactions required to satisfy tax withholding obligations related to the vesting of restricted stock units (RSUs). According to the filing, the shares were sold at varying prices ranging from $1.945 to $2.045. These transactions reduced Rivas's holdings in the company to 880,440 shares following the sale.
In addition to the sale, Rivas was awarded 500,000 RSUs, which will begin vesting in April 2024. The RSUs are scheduled to vest monthly over two years, contingent upon his continuous service with the company.
Rigetti Computing, a quantum computing company incorporated in Delaware, has been a subject of interest for investors following its name change from Supernova Partners Acquisition Co II, Ltd. in late 2020.
Investors and analysts often monitor insider transactions as they can provide insights into executives' perspectives on their company's current valuation and future prospects. The transactions detailed in the SEC filing offer a glimpse into the financial activities of one of Rigetti Computing's top executives.
InvestingPro Insights
Rigetti Computing, Inc. (RGTI) has maintained an impressive gross profit margin of 76.68% over the last twelve months as of Q1 2023, which underscores the efficiency of their operations in generating revenue relative to the cost of goods sold. This high margin is a positive sign for investors, as it indicates the company's ability to maintain profitability on its core products and services.
Despite the company's strong gross profit margins, one of the InvestingPro Tips suggests that analysts are skeptical about Rigetti's profitability in the near term, as they do not anticipate the company will be profitable this year. This may be a point of concern for investors considering the company's future earnings potential. Additionally, the company's stock has been characterized by high price volatility, which could mean higher risk for investors. It's important for potential investors to consider these aspects alongside the insider transactions to get a comprehensive understanding of the company's financial health and market position.
Looking at the real-time metrics from InvestingPro, the company's market capitalization stands at $310.83 million, with a negative P/E ratio of -4.37, reflecting market skepticism about future earnings. Moreover, the company's revenue has experienced a decline of -8.35% over the last twelve months as of Q1 2023, which might raise concerns about growth prospects. However, it's worth noting that Rigetti's liquid assets exceed its short-term obligations, which may provide some reassurance regarding the company's ability to meet its immediate financial liabilities.
For those seeking more comprehensive analysis and additional InvestingPro Tips, there are a total of 14 tips available for Rigetti Computing at https://www.investing.com/pro/RGTI. To gain access to these insights and enhance your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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