The shares of Arcadia Biosciences (NADSAQ:RKDA) are up 17.7% at $8.23 after the agricultural biotech company got approval from the Food and Drug Administration (FDA) to use its Sonova GLA safflower oil in cat food. The oil has been used in nutritional supplements for humans since 2009 and in dog food since last year. The stock is pacing for its best day since July.
RKDA just gapped 49% higher on Feb. 28, shortly after hitting its all-time-low of $2.64 on Dec. 27. The security recently popped atop its 320-day moving average for the first time since June, and is trading right near this long-term trendline today.
The pop could have analysts rushing to initiate coverage on the security. Currently only one analyst is following Arcadia stock, with a strong buy rating and a lofty $20 target price that the stock would need to rally roughly 143% to hit.
Meanwhile, short sellers have been jumping ship. Short interest has fallen over 5% in the last reporting period. However, these shares sold short still represent a healthy 10% of RKDA's available float, so short covering tailwinds could continue to help the security.