Ed Lin

Rigetti Computing stock has been soaring so steeply, it is blowing past the prices one former executive expected to receive.

Rick Danis, the former general counsel and corporate secretary of Rigetti, sold 250,000 of the company's shares on Dec. 26 for $3.70 million, according to a form he filed with the Securities and Exchange Commission. That was about 30%, or $860,000, more than the estimated sale price of $2.84 million, which was based on the $11.35 closing price of the previous trading day, Dec. 24. The actual average sale price was $14.78 a share.

Danis also intended to sell another 250,000 Rigetti shares on Dec. 27 for $3.86 million, based on the $15.44 Dec. 26 closing price of the stock. But that stock sale likely was for much more as well because $15.44 was the low trading price that day, with $19.35 the high. Rigetti stock closed at $17.08.

Danis is no longer a Rigetti insider, but he is required to report proposed sales of shares originally received as compensation on a Form 144. He isn't required to report completed transactions, so the actual price, if the sale was completed, wouldn't be disclosed until Danis files another Form 144, which includes historical sales information.

Rigetti stock has rocketed more than 1,600% year to date through Friday's close. Much of the surge came in the past month as a result of investors' excitement about quantum computing.

Danis resigned from Rigetti on Nov. 30, and an arrangement for him to remain a consultant through March was terminated by mutual agreement earlier this month. His LinkedIn profile says that Danis is now general counsel of Bluetooth Special Interest Group, a Kirkland, Wash.-based not-for-profit membership organization that oversees Bluetooth technology. Bluetooth SIG didn't immediately respond to a request to make Danis available for comment on his stock sales.

Shares of Rigetti, which has operated quantum computers over the cloud since 2017, began trading on March 2, 2022, after the business went public through a merger with a special-purpose acquisition company. Danis served as Rigetti's interim president and CEO from Nov. 12 to Dec. 12 that year after founder Dr. Chad Rigetti resigned as president, CEO, and a director.

Inside Scoop is a regular Barron's feature covering stock transactions by corporate executives and board members -- so-called insiders -- as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.

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December 30, 2024 10:16 ET (15:16 GMT)

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