Aquabounty Technologies Inc (NASDAQ: AQB) raises bioengineered Atlantic salmon for human consumption. Raising salmon in Indiana and other inland locations may sound a little odd, but people do love their sushi. The company has shown improvement in their corporate earnings and has been able to gain needed financing. The recent surge in insider buying may be a clue as to the near-term potential for the company.
In their most recent earnings press release, the company discussed their operation and the fact they had completed their first harvest of Atlantic Salmon in June at their Indiana farm. Sylvia Wulf, Chief Executive Officer of AquaBounty, stated:
“The first harvest of conventional salmon represents the start of the commercialization phase for AquAdvantage salmon (AAS), a milestone over 30 years in the making. This will be a breakthrough moment not only for AquaBounty, but for the industry—as it will be the first sale of a genetically engineered animal protein in the U.S.”
The company maintains cash and cash equivalents of $10.0 million and narrowed their quarterly loss to $0.22 per share from a loss of $0.37 a year earlier.
Since the August 6 press release, there have been serval notable insider purchases of the company’s shares. In total there have been six separate buys by six different insiders all on the same day on August 11. Each of the transactions increased their holdings materially with two separate transaction of 4 million shares by two different 10% owners in the company, Randal Kirk and Alana Czypinski.
Action to Take: After gapping lower following the earnings report, the price has closed the gap on high volume. The price is consolidating with a potential near-term move to $3.60.