National Securities Initiates Coverage on Arcadia Biosciences (RKDA)

Investment analysts at National Securities began coverage on shares of Arcadia Biosciences (NASDAQ:RKDA) in a report issued on Wednesday. The brokerage set a “buy” rating and a $15.00 price target on the basic materials company’s stock. National Securities’ target price indicates a potential upside of 135.11% from the company’s current price.

The analysts wrote, “Breeding Tomorrow’s Crops. By utilizing gene editing technology to develop crops with enhanced nutritional profiles and growth characteristics, Arcadia Biosciences is a small cap investment that is addressing a large scale market opportunity.

 Commercialization Around The Corner. A number of development initiatives are beginning to transition to commercialization, with two lead products expected to have initial revenues in the next 12 months. Several additional products are expected to convert from development to commercialization in the following 2 to 3 years, and we expect the company will move from a pre-commercial revenue business in 2018 to a $100 million revenue business in 2023.

 Pivot Towards The Consumer. A strategic shift has taken shape in recent years, with trait development focused more on the consumer rather than the grower with crops like high fiber or low gluten wheat. This shift has enabled the development of several high revenue possibilities as food companies push to differentiate products with healthier ingredients and simpler labels that can stimulate organic growth and margin enhancement.

 Capitalizing On Cannabis Legalization. On February 28th, RKDA announced that breeding efforts would expand into cannabis. While the sale of byproduct from field trials can bring in some modest near-term revenues, we believe the key to the value proposition is development of a portfolio of proprietary traits that could bring in high margin revenues or command a meaningful M&A premium over the long term.”

Other equities research analysts have also issued reports about the company. HC Wainwright restated a “buy” rating and issued a $20.00 price objective on shares of Arcadia Biosciences in a research note on Thursday, February 28th. Zacks Investment Research upgraded Arcadia Biosciences from a “hold” rating to a “buy” rating and set a $5.00 price objective for the company in a research note on Thursday, February 14th.

Shares of NASDAQ:RKDA traded up $0.33 during midday trading on Wednesday, hitting $6.38. The company had a trading volume of 52,396 shares, compared to its average volume of 199,961. The firm has a market capitalization of $28.92 million, a price-to-earnings ratio of -1.19 and a beta of -2.00. Arcadia Biosciences has a 12-month low of $2.64 and a 12-month high of $28.90.

Arcadia Biosciences (NASDAQ:RKDA) last posted its quarterly earnings data on Wednesday, March 27th. The basic materials company reported ($0.14) EPS for the quarter, topping the consensus estimate of ($0.76) by $0.62. The firm had revenue of $0.44 million during the quarter, compared to analyst estimates of $0.30 million. Arcadia Biosciences had a negative return on equity of 233.26% and a negative net margin of 920.77%. Research analysts anticipate that Arcadia Biosciences will post -2.4 earnings per share for the current year.

Several institutional investors have recently modified their holdings of RKDA. Vanguard Group Inc bought a new position in shares of Arcadia Biosciences in the 3rd quarter valued at about $91,000. Dimensional Fund Advisors LP bought a new position in shares of Arcadia Biosciences in the 3rd quarter valued at about $112,000. Finally, Virtu Financial LLC bought a new position in shares of Arcadia Biosciences in the 3rd quarter valued at about $121,000. Hedge funds and other institutional investors own 5.91% of the company’s stock.

Arcadia Biosciences Company Profile

Arcadia Biosciences, Inc, an agricultural food ingredient company, develops and commercializes health and nutrition ingredient traits worldwide. The company offers a suite of agricultural productivity traits, including nitrogen use efficiency, water use efficiency and drought tolerance, salinity tolerance, and herbicide tolerance traits.

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