Is Arcadia Biosciences, Inc. (RKDA) an Incredible Bargain?

How do you judge Wall Street’s opinion of RKDA stock? You could look at price, sure. But that doesn’t tell the whole story. Short sellers are getting bullish about Arcadia Biosciences, Inc. (NASDAQ:RKDA) during the most recent two-week period. Looking at the sentiment indicator for the RKDA stock we see that the short-interest ratio is at 3.873847 while the average analyst recommendations at 0 suggests selling these shares. Between January 15 and January 31, the total number of shorted shares amounted to 282.69 thousand shares. That was 5.8% less than the total of 300.12 thousand shares in the space of prior two weeks, which means more traders or funds betting that the stock will go up. Average daily volume for Arcadia Biosciences, Inc. at the January 31st settlement jumped to 72,975, as compared to 40,727 at the January 15th report. That brought days to cover 47.43% down from the 7.368944 days to cover recorded at the prior short interest data release.

Investors will get their next glimpse of RKDA’s Q4 earnings on March 06. Analysts are forecasting revenue to suffer decline of -80.4 percent to $280M in the next fiscal quarter, while earnings are seen soaring by nearly -57.78 percent to -$0.76 per share. History has shown that shares in Arcadia Biosciences, Inc. have gone down on 12 different earnings reaction days and are predicted to add 0.06 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.93 per share, better than the -$1.13, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $370000, better than the $260000 analysts expected. Earnings are estimated to increase by 17.7 percent this year, 45.1 percent next year and continue to increase by 14.96 percent annually for the next 5 years.

Arcadia Biosciences, Inc. (RKDA) will probably climb 299.2 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $20 price as 12-month high target. This represents a whopping 299.2 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $20, which represents a return potential of 299.2 percent when compared to the closing price of the stock of $5.01 on Wednesday, February 13. The lowest price target for the stock is $20 — slightly more than 299.2 percent from RKDA’s current share price.

The stock is currently hovering around the first support level of $4.41. Below this, the next support is placed in the zone of $3.8. Till the time, the RKDA stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 69.73 on daily chart, which may remain a cause for concern. If the price breaks below $3.8 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $5.6 mark may result into a pull-back move towards $6.18 level.

On 13th of February, Arcadia Biosciences, Inc. (NASDAQ:RKDA) shares ended higher after a volatile session. The shares accumulated 0.62 points or 14.12 percent at $5.01 with a light trade volume of 1.7 million shares. After opening the session at $4.39, the shares went as high as $5.5795 and as low as $4.39, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $24.9 million and now has 4.97 million shares outstanding. Arcadia Biosciences, Inc. (RKDA) stock has gained 43.14 percent of market value in 21 trading days.

RKDA stock has a trailing 3-year beta of -2.55, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$7.33 a share in the trailing twelve months. The stock’s value has surged 58.04 percent year to date (YTD) against a rise of 14.91 percent in 12 month’s time. The company’s shares still trade -92.47 percent away from its 1-year high of $66.56 and 89.4 percent up from 52-week low of $2.65. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Arcadia Biosciences, Inc. (RKDA) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry RKDA operates in has an average P/E of 22.71. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 10.37 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.9. 81.5 percent is the gross profit margin for Arcadia Biosciences, Inc. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.

Let’s take a look at some insider activity at Arcadia Biosciences, Inc. (NASDAQ:RKDA) and see the pattern. The earliest insider trade took place on 03/23/2018. Lu Zhongjin parted with a total of 1.75 thousand shares of company at average share price of $32.74. The total for the sales was set at $57.3 thousand. After this transaction, the VP Product Development account balance stood at 0.56 thousand shares. The stock lost -84.7 percent since that insider sale. On 03/23/2018, Rey Eric J., Director, sold 5 thousand shares at a price per share of $33.44. This removed 167.2 thousand shares from the insider’s fortune and the stock saw a -85.02 percent retreat in value since the news became public. This transaction left 7.34 thousand shares in the Director account.

On 03/15/2018, Director Rey Eric J. performed a sale transaction worth $964.55 thousand. This sale at $45.38 each has eliminated 21.26 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -88.96 percent decrease since the transaction was reported. The insider now is left with 7.34 thousand shares remaining in the account. Lu Zhongjin, who performs the VP Product Development job, sold 5.95 thousand shares for $1.37 thousand. The disposal occurred on 11/17/2017 was priced at $0.23 per share. The share price soared 2078.26 percent since the reporting date. Lu Zhongjin now left with a stake of 11.15 thousand RKDA stock worth $55.88 thousand after the insider selling.