Arcadia Biosciences Inc (NASDAQ:RKDA)
Shares of Arcadia Biosciences Inc (NASDAQ:RKDA) edged higher by 15.66% after the company reported better than expected second quarter earnings. Investors bought up the shares after the company released financial results that showed revenue growth coupled with declining operating costs and declining net loss.
Thursday’s rally saw the stock power to highs of $0.60 a share before retreating to the $0.48 mark. The stock faces strong resistance around the $0.50 level.
Arcadia Biosciences Inc (NASDAQ:RKDA) stock is trading 15% below its 50 day moving average as sellers continue to pressure the shares. Arcadia Biosciences Inc. (NASDAQ:RKDA) has underperformed the overall market ever since it started sliding late last year when it was trading at highs of $1.50 a share.
Arcadia Biosciences Inc (NASDAQ:RKDA) is an agricultural biotechnology company. The company develops a portfolio of yield enhancement techniques and traits for addressing multiple crops for supplying global food and feed markets. Partners utilize the firm’s yields to develop higher yield seeds for crops including wheat, rice, soya bean, and corn.
The Davis California Company says it generated revenues of $991,000 in Q2, representing a 37%, increase from Q2 2016. The Company attributes the increase to higher product sales as well as higher contract and grant revenue.
Arcadia Biosciences Inc (NASDAQ:RKDA) second quarter net loss dropped to (-$4) million from (-$4.6) million as of last year. Net loss for the first six months of the year dropped 16% to (-$8.2) million compared to (-$9.7) million as of last year.
“Our positive momentum from the first quarter continued in the second quarter with increased revenue, decreased operating costs and a reduced net loss. Together with our global partners, we continue to advance the key products from our yield trait and food ingredient platforms toward commercialization,” said CEO Raj Ketkar.
The company exited the second quarter with cash and cash equivalent of $44.1 million.
Dow AgroSciences Partnership
Separately, Arcadia Biosciences Inc. (NASDAQ:RKDA) and Dow AgroSciences LLC have entered into a partnership for the development and commercialization of improved wheat quality. The partnership will leverage Arcadia Biosciences non-GM TILLING trait development platform with Dow enabling technology platforms
The collaboration according to Arcadia Biosciences Inc (NASDAQ:RKDA) CEO underscores the company’s commitment to pursuing opportunities in the growing market of improved nutrition traits.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.