Anyone interested in Rigetti Computing, Inc. (NASDAQ:RGTI) should probably be aware that the Chief Financial Officer, Brian Sereda, recently divested US$274k worth of shares in the company, at an average price of US$4.59 each. However, the silver lining is that the sale only reduced their total holding by 5.0%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Rigetti Computing
Over the last year, we can see that the biggest insider sale was by the Founder, Chad Rigetti, for US$1.4m worth of shares, at about US$4.56 per share. So what is clear is that an insider saw fit to sell at around the current price of US$4.44. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year we saw more insider selling of Rigetti Computing shares, than buying. 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Rigetti Computing insiders own 5.4% of the company, worth about US$29m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Rigetti Computing Insiders?
Insiders sold Rigetti Computing shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! While we like knowing 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. To help with this, we've discovered 5 warning signs (2 are a bit concerning!) that you ought to be aware of before buying any shares in Rigetti Computing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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, but not derivative transactions.
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