Arcadia Biosciences Improving Fundamentals are Driving its Shares Higher

Arcadia Biosciences Inc (NASDAQ:RKDA) continues to generate the huge movements in its stock price, allowing investors to create profit-making opportunities. Following a huge selloff in the last two years, Arcadia stock started gaining momentum over the last couple of weeks, thanks to improving fundamentals and financial forecast. RKDS stock soared as high as $6.74 per share in Wednesday trade before retreating back to $5.94 per share.

The average volume increased to 247,265 shares, compared to the daily average volume of 29,894 shares. The stock has the 52-week trading range of $3.60-$19. RKDS shares soared 24% in the last month, down 72% in the last twelve months despite the latest rally. Arcadia stock has lost almost 96% since the second half of 2015.  

 

Enter Your E-mail Address To Subscribe

* indicates required
 

Source Image: finviz

Arcadia is an agricultural biotechnology trait company concentrating on developing the portfolio of yield and traits with an aim to cover multiple crops.

The huge sell-off in its stock was the result of poor financial results in the past two years. Its revenue declined more than 21% on average in the past two years. The company’s revenue declined 45% year over year to $589,000 in the third quarter of FY2017.

However, the company expects to generate better results in the days to come, supported by its strategy to expand non-GM health and nutritional ingredient products pipeline.

Its CEO stated, “Importantly during the quarter, we’ve further broadened and advanced to market an unparalleled non-GM health and nutritional ingredient products pipeline, and we’ve jump-started the deregulation and commercialization of two of our leading ag productivity traits, Water- and Nitrogen Use Efficiency in rice and cotton.”

 

Source Image: SeekingAlpha

After the addition of reduced gluten trait variety to its pipeline, the company has considerably expanded the non-GM wheat trait portfolio.

Furthermore, Arcadia is planning to improve its revenue generation in the short-term with the strategy of targeting the consumer markets and animal feed market for its high-fiber wheat products. Overall, the latest rally shows that investors are capitalizing on the huge selloff in Arcadia shares, thanks to improving fundamentals.  

Featured Image: Phytola