Hungry for some salmon? It looks like Wall Street is today, as investors chase up little-known AquaBounty Technologies (NASDAQ:AQB). In fact, AQB stock is up almost 40% in intraday trading, despite there being no news or press releases from the fish-farming company. So what do you need to know? And why is AQB stock trending higher today?
With those questions in mind, here are 14 things for investors to know about AquaBounty Technologies and AQB stock.
- AquaBounty Technologies is a farm products company that calls Maynard, Massachusetts home.
- Specifically, AquaBounty focuses on land-based aquaculture for salmon.
- What does this mean? Well, land-based aquaculture is a growing trend in the world of fish farming.
- AquaBounty uses something called recirculating aquaculture systems (RAS), where most of the water in the fish tanks is recirculated.
- This type of land-based aquaculture is growing in popularity, and can help save on fish feeding costs and give farmers more control over the output. For instance, it can help them control exactly what the fish eat and what minerals or pollutants they are exposed to.
- Some believe this type of land-based aquaculture is also more sustainable.
- With all of this in mind, AQB stock represents land-based aquaculture specifically for salmon.
- AquaBounty Technologies currently focuses on using land-based aquaculture for its AquAdvantage Salmon.
- This type of salmon has been around since 1989.
- Importantly, AquaBounty Technologies engineered one of the growth hormones in this salmon to change its growth patterns.
- Now, the AquAdvantage Salmon is capable of growing year-round instead of just in the spring and summer.
- Investors should also note that AQB stock has been receiving institutional support.
- Ark Invest, which also backs Tesla (NASDAQ:TSLA), recently disclosed a 10% stake in AQB stock.
- This comes as AquaBounty expands its aquaculture footprint in the U.S.
Why AQB Stock Is Interesting Here
So what makes AQB stock stand out today? One broad reason behind this may be the industry shift toward land-based aquaculture, and more specifically, to recirculated aquaculture systems. As one industry expert put it, these land-based facilities are popping up all over the world. Up until recently, they had focused more heavily in Europe. However, demand for fish like salmon by U.S. customers has led companies like AquaBounty to launch U.S. facilities. As this demand grows, so too could profitability for land-based aquaculture.
With that in mind, investors should know that AquaBounty Technologies currently operates two facilities. One is in Albany, Indiana and the other is in Prince Edward Island, Canada. Importantly, the company plans to open another U.S. facility in Mayfield, Kentucky. This new facility will be approximately eight times larger than that in Indiana.
There is one other thing to note here. As investors pay attention to AQB stock and its aquaculture peers, there is a novel coronavirus angle. As CEO Sylvia Wulf said during the third-quarter earnings call, the pandemic has weighed on food service industry. In turn, with the food service industry slumped, there has been less demand for salmon. Despite this challenge, Wulf said she is confident in the long-term future for AQB stock. This is because the company is gearing up for its first-ever commercial harvest of AquAdvantage salmon and its new facility in Kentucky.
Keep an eye on the news. Maybe another stock-boosting headline will be swimming our way shortly.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.