RKDA has doubled in the last two months
The cannabis industry continues to infiltrate other sectors, and next up appears to be biotechs. The shares of Arcadia Biosciences Inc (NASDAQ:RKDA) are up a whopping 52.8% in electronic trading, after the company announced a new cannabis-focused business unit. Arcadia Specialty Genomics (ASG) will focus on the hemp market, with an eye toward "improved plant quality, productivity, consistency and resilience," per a company release.
Should today's bullish premarket price action carry through, this would send Arcadia stock to the top of the Nasdaq. Since bottoming at a record intraday low of $2.65 on Dec. 27, RKDA has more than doubled in value, closing last night at $5.40. But today's breakout has the shares on track to topple their 200-day moving average for the first time in June.
Today's news could put Arcadia stock on analysts' radar. Only one analyst is currently in coverage of RKDA, doling out a "buy" rating and $20 price target. If more bull notes come through, it could add wind to the equity's sails.
A short-squeeze rally could also play out if RKDA topples resistance in today's trading. Short interest rose by 19% in the most recent reporting period to 335,623 shares. This represents a healthy 10.5% of RKDA's total available float, and 2.4 times the average daily trading volume.