Aquabounty Technologies’ (AQB) “Buy” Rating Reiterated at National Securities

National Securities reaffirmed their buy rating on shares of Aquabounty Technologies (NASDAQ:AQB) in a research report released on Wednesday morning, AnalystRatings.com reports. The firm currently has a $5.00 price objective on the stock.

“ Second Quarter Results. An operating loss of $4.0 million fell below our estimated loss of $2.8 million, driven largely by sequential increases in G&A from $2.0 million in the first quarter to $3.1 million in the second quarter. We believe some of the increases were one time in nature, although we believe our prior OpEx estimates in advance of commercialization were too light.

 Production Schedule On Track. With AquAdvantage Salmon (AAS) in the Indiana and Rollo Bay grow out facilities, we continue to expect initial harvests by the end of 2020. A one-time harvest of conventional salmon is also expected in the third quarter of 2020. We look for a regular introduction of AAS into the grow out phase which should enable year-round harvest.

 What Is Next? With production now underway in both facilities, we believe management is focused on securing buyers for the initial harvest and making preliminary estimates on future expansion. The commercial team is being developed, highlighted by the introduction of CCO David Melbourne Jr in the quarter. We believe expansion plans will be formally announced as commercial revenues are realized and will initially be an expansion of the current Indiana facility.

 Initial AAS Buyer The Next Major Catalyst. We believe a formal announcement of the first buyers of AAS will represent a significant catalyst for the stock. With the first harvest of AAS anticipated in the third quarter of 2020, we expect buyers to commit around the Spring of 2020. We expect investors on the sideline are awaiting this announcement, and thus believe as buyers are secured and visibility of revenue is enhanced that shares will make a meaningful and sustainable movement upward.,” National Securities’ analyst commented.

Other research analysts also recently issued research reports about the stock. HC Wainwright set a $4.00 price target on shares of Aquabounty Technologies and gave the stock a buy rating in a research report on Thursday, July 11th. ValuEngine downgraded shares of Aquabounty Technologies from a buy rating to a hold rating in a research report on Friday, August 2nd.

Shares of Aquabounty Technologies stock opened at $3.30 on Wednesday. The stock has a 50-day moving average price of $3.29. Aquabounty Technologies has a fifty-two week low of $1.51 and a fifty-two week high of $5.45. The company has a debt-to-equity ratio of 0.16, a current ratio of 5.17 and a quick ratio of 7.10.

Aquabounty Technologies (NASDAQ:AQB) last issued its quarterly earnings data on Tuesday, August 6th. The company reported ($0.19) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.06). Aquabounty Technologies had a negative return on equity of 46.82% and a negative net margin of 7,510.69%. The firm had revenue of $0.04 million during the quarter, compared to analyst estimates of $0.01 million. On average, sell-side analysts predict that Aquabounty Technologies will post -0.53 earnings per share for the current year.

Several institutional investors and hedge funds have recently added to or reduced their stakes in AQB. ARK Investment Management LLC grew its stake in shares of Aquabounty Technologies by 8.3% in the 2nd quarter. ARK Investment Management LLC now owns 363,360 shares of the company’s stock valued at $1,116,000 after buying an additional 27,940 shares during the period. Nikko Asset Management Americas Inc. lifted its holdings in shares of Aquabounty Technologies by 97.7% in the 2nd quarter. Nikko Asset Management Americas Inc. now owns 317,925 shares of the company’s stock worth $976,000 after acquiring an additional 157,125 shares during the last quarter. Sumitomo Mitsui Trust Holdings Inc. lifted its holdings in shares of Aquabounty Technologies by 110.6% in the 2nd quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 317,925 shares of the company’s stock worth $976,000 after acquiring an additional 166,991 shares during the last quarter. FNY Investment Advisers LLC acquired a new position in shares of Aquabounty Technologies in the 2nd quarter worth approximately $79,000. Finally, Cpwm LLC acquired a new position in shares of Aquabounty Technologies in the 2nd quarter worth approximately $61,000. Hedge funds and other institutional investors own 51.44% of the company’s stock.

About Aquabounty Technologies

AquaBounty Technologies, Inc, a biotechnology company, develops and markets products to enhance productivity in aquaculture. It offers AquAdvantage Salmon, a genetically modified Atlantic salmon for human consumption. The company was formerly known as Aqua Bounty Farms, Inc and changed its name to AquaBounty Technologies, Inc in June 2004.

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