Aquabounty Story

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AQB -- USA Stock  

USD 5.48  0.37  6.32%

Despite somewhat weak fundamental drivers, AquaBounty may actually be approaching a critical reversion point that can send shares even higher in January 2021. We currently estimate AquaBounty as overvalued. The real value is approaching 4.91 per share.
Published over three months ago
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Does AquaBounty (NASDAQ:AQB) have strong fundamental drivers based on the current rise?
We provide trade advice to complement the prevailing expert consensus on AquaBounty. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. The firm dividends can provide a clue to the current value of the stock. The entity is not expected to issue dividends this year as it is trying to preserve or re-invest any of the funds available for distribution to stakeholders.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Aquabounty Technologies income statement, its balance sheet, and the statement of cash flows. Potential Aquabounty Technologies investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Aquabounty Technologies investors may use each financial statement separately, they are all related. The changes in Aquabounty Technologies's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Aquabounty Technologies's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Aquabounty Technologies fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Aquabounty Technologies performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Aquabounty Technologies shares is the value that is considered the true value of the share. If the intrinsic value of Aquabounty is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Aquabounty Technologies.
Please read more on our fundamental analysis page.

What is Aquabounty Asset Breakdown?

Aquabounty Technologies reports assets on its Balance Sheet. It represents the amount of Aquabounty resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect Aquabounty volatility, please check the breakdown of all its fundamentals

Are Aquabounty Technologies Earnings Expected to grow?

The future earnings power of Aquabounty Technologies involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Aquabounty Technologies factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Aquabounty Technologies stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Aquabounty expected earnings.

Aquabounty Technologies Gross Profit

Aquabounty Technologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Aquabounty Technologies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Aquabounty Technologies Gross Profit growth over the last 10 years.
Please check Gross Profit in more details.

Acquisition by Richard Huber of 2500 shares of Aquabounty Technologies subject to Rule 16b-3

Legal trades by Aquabounty Technologies insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Aquabounty insider trading alert for grant of options to purchase common stock by Richard Huber, the corporate stakeholder, on 22nd of March 2021. This event was filed by Aquabounty Technologies I with SEC on 2021-03-22. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper Analysis

Institutional investors typically avoid acquiring a high percentage of AquaBounty stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of AquaBounty is distributed among investors.

Ownership Allocation

AquaBounty retains a total of 44.96 Million outstanding shares. Over half of AquaBounty outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulation than regular investors in AquaBounty. Please watch out for any change in the institutional holdings of AquaBounty as this could mean something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.

Retail Investors
29.74%
Insiders
8.83%
Institutions
61.43%
Retail Investors29.74
Insiders8.83
Institutions61.43
 2010 2018 2019 2020 (projected)
Revenues USD53.28 K84.52 K186.74 K160.91 K
Revenues53.28 K84.52 K186.74 K160.91 K

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. AquaBounty has an asset utilization ratio of 1.65 percent. This suggests that the company is making $0.0165 for each dollar of assets. An increasing asset utilization means that AquaBounty is more efficient with each dollar of assets it utilizes for everyday operations.

Assets Non Current
27.8 M
Current Assets3.77 Million11.85
Assets Non Current27.79 Million87.27
Goodwill281,7520.88

Our take on today AquaBounty rise

Value At Risk just dropped to -7.4, may suggest upcoming price depreciation. AquaBounty is displaying above-average volatility over the selected time horizon. Investors should scrutinize AquaBounty independently to ensure intended market timing strategies are aligned with expectations about AquaBounty volatility.

Our Final Take On AquaBounty

Whereas some other companies within the farm products industry are still a little expensive, even after the recent corrections, AquaBounty may offer a potential longer-term growth to investors. Taking everything into account, as of the 4th of December 2020, our primary 30 days buy-hold-sell recommendation on the company is Strong Sell. We believe AquaBounty is overvalued with high probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Aquabounty Technologies. Please refer to our Terms of Use for any information regarding our disclosure principles.

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