Rigetti Computing Insider Sellers Miss The Bus As Stock Jumps 13%

Last week, Rigetti Computing, Inc.'s (NASDAQ:RGTI) stock jumped 13%, but insiders who sold US$209k worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$1.35, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Rigetti Computing

The Last 12 Months Of Insider Transactions At Rigetti Computing

The General Counsel & Corporate Secretary, Richard Danis, made the biggest insider sale in the last 12 months. That single transaction was for US$91k worth of shares at a price of US$1.97 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$0.85). So it may not shed much light on insider confidence at current levels.

In the last year Rigetti Computing insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Rigetti Computing better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Rigetti Computing Insiders Are Selling The Stock

We have seen a bit of insider selling at Rigetti Computing, over the last three months. Insiders sold just US$40k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Insider Ownership Of Rigetti Computing

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Rigetti Computing insiders own about US$6.7m worth of shares (which is 4.3% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Rigetti Computing Tell Us?

While there has not been any insider buying in the last three months, there has been selling. However, the sales are not big enough to concern us at all. We're a little cautious about the insider selling at Rigetti Computing. And we're not picking up on high enough insider ownership to give us any comfort. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Rigetti Computing you should be aware of.

But note: Rigetti Computing may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.