Arcadia Biosciences, Inc. (RKDA) Stock: Here’s Why It’s Tumbling

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Arcadia Biosciences, Inc. (RKDA) is headed down in the market today. The stock, focused in the biotechnology sector, is presently trading at $7.29 after heading down -7.72% so far today. When it comes to biotech stocks, there are quite a few aspects that have the ability to lead to declines in the market. One of the most common is news. Here are the recent headlines centered around RKDA:

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Mar-15-19 05:58PM Arcadia shares rise with FDA approval of nutrition product for cats
04:00AM Arcadia Biosciences Receives FDA Approval for SONOVA® GLA Safflower Oil in Cat Food
Mar-12-19 10:30AM Arcadia Biosciences (RKDA) May Report Negative Earnings: Know the Trend Ahead of Q4 Release
Mar-04-19 04:34PM Arcadia Biosciences Granted New Hawaiian Hemp License
07:40AM Arcadia Biosciences stock soars after grant of hemp license in Hawaii

Nonetheless, when making a decision with regard to investing, prospective investors should take a look at far more than just news, this is especially the case in the highly speculative biotech sector. Here’s what’s happening with Arcadia Biosciences, Inc..

Recent Movement From RKDA

While a move toward the top in a single session, like the fall that we’re seeing from Arcadia Biosciences, Inc. may lead to fear in some investors, a single session decline alone shouldn’t be the basis of a decision to, or not to, buy a company’s stock. It’s generally smart to dig into trends experienced by the stock beyond a single session. As it relates to RKDA, here are the returns that we have seen:

  • Past 5 Trading Sessions – Throughout the past week, RKDA has produced a change in price that amounts to -1.88%.
  • Monthly – The monthly returns from Arcadia Biosciences, Inc. works out to 38.86%.
  • Quarterly – Over the last quarter, the company has generated a return that comes to 91.84%
  • Bi-Annually – Over the previous six months, we’ve seen a change that amounts to 39.92% from the stock.
  • Year To Date – Since the close of last year RKDA has resulted in a return on investment of 129.97%.
  • Full Year – Lastly, throughout the last year, investors have seen performance of -82.84% out of RKDA. Over this period, the stock has traded at a high price of -86.39% and a low price of 175.59%.

Notable Ratios

Digging into various key ratios associated with a company generally gives prospective traders an understanding of just how dangerous and/or potentially profitable a an investment option may be. Below are a few of the important ratios to look at when looking at RKDA.

Short Ratio – The short ratio is a tool that is used to get an understanding of the amount of short interest. The higher this short ratio, the more investors have a belief that the stock is headed for declines. Throughout the sector, biotech stocks can carry a higher short ratio. However, we tend to see a lot of short squeezes in the space. Nonetheless, as it relates to Arcadia Biosciences, Inc., it’s short ratio comes to 0.35.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Essentially, they measure If a company is able to pay for its debts when they mature based on current assets or quick assets. Because many biotech many companies are reliant on continued investor support, the current and quick ratios can seem upsetting. However, several gems in the biotechnology sector do have good current and quick ratios. In terms of RKDA, the quick and current ratios add up to 9.80 and 9.90 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the current book value of assets owned by the company. when it comes to Arcadia Biosciences, Inc., the book to share value ratio works out to 2.71.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the price of shares. Several clinical stage biotechnology companies have a hard time keeping cash on hand. So, if you’re interested in a biotech stock, this is a very important ratio to think about. In this case, the cash to share value works out to 5.82.

How Analysts Feel About Arcadia Biosciences, Inc.

While it’s never a smart idea to blindly follow the thoughts of analysts, it is a good idea to consider their opinions in order to validate your own thoughts before making investment decisions in the biotech space. Here are the most recent moves that we have seen from analysts with regard to RKDA.

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May-12-17 Downgrade Piper Jaffray Overweight → Neutral
Jun-09-15 Initiated Piper Jaffray Overweight $10
Jun-09-15 Initiated Credit Suisse Outperform $14

What Institutions And Insiders Think Of Arcadia Biosciences, Inc.

An interesting fact that I’ve learned in my brief period alive, or somewhat alive is that smart investors tend to follow big money. That is to say, investors that are trying to keep their investments relatively safe will follow trades made by institutions and insiders. With that said, what does the big money picture look like in regard to RKDA? Here’s the information:

  • Institutions – Currently, institutions hold 5.90% of the company. On the other hand, it’s important to note that the ownership held by institutions has changed in the amount of -38.46% over the last quarter.
  • Insiders – When it comes to insiders, members of the management team and others close to RKDA currently own 33.33% of Arcadia Biosciences, Inc.. Their ownership of the company has changed by 0.00% over the past 3 months.

Interested In How Many Shares Are Available?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 4.23M shares of Arcadia Biosciences, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, RKDA has a float of 3.18M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to RKDA, the short percent of the float is 10.00%.

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-2.40. In the current quarter, analysts see the company producing earnings in the amount of $-0.76. Over the last 5 years, RKDA has generated revenue in the amount of $-10.50% with earnings coming in at -4.90%. On a quarter over quarter basis, earnings have seen movement of 143.90% and revenue has seen movement of -33.30%.

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