Operating in a niche sector you might have never even considered. AquaBounty Technologies (NASDAQ:AQB) specializes in environmentally responsible fish farming techniques. If you like what you’ve heard so far, then AQB stock might be for you.
In the realm of fish farming, land-based aquaculture is a growing trend. AquaBounty’s aquaculture technologies tend to focus on making salmon fishing more efficient and sustainable.
For anyone who likes to invest in companies that are compliant with ESG (environmental, social and governance) best practices, AquaBounty should definitely pique their interest.
But let’s not get ahead of ourselves here. First and foremost, we should step back and take a look at the stock’s price history and perhaps even establish some targets.
AQB Stock at a Glance
Over the past year, it’s fair to say that AQB stock swam upstream.
The share price was below the crucial $2 level in March of 2020, but by mid-November it had already broken above $4.
Then a swift and sharp run-up happened, with the buyers managing to get the share price up to a 52-week high of $13.32 on Jan. 25, 2021.
It’s usually not a great idea for traders to chase after parabolic price moves. AQB stock provides a textbook example: after topping out in January, the stock started declining steadily.
On the afternoon of March 26, 2021, the stock was trading at $6 and change. This could be an excellent buy price if you’re just discovering the stock today.
If and when the bulls retake control of AQB stock, the next price targets to watch would be $10 followed by the previous $13 resistance area. Breaking through that level could signal the next bull run.
An Aquaculture Trailblazer
If you’re looking to invest in aquaculture, there aren’t many publicly tradable companies to choose from besides AquaBounty Technologies.
And you’ve got to admit, AQB stock is affordable for most portfolio sizes. Yet, even beyond all of that, it’s noteworthy that AquaBounty has earned trailblazer status in the company’s chosen field.
It was way back in 1989 when AquaBounty first created its AquAdvantage Salmon or “AAS” line. The company then commenced the regulatory approval process for AAS in 1995.
What’s special about AAS technology, according to AquaBounty, is that it “offers superior economics vs. conventional salmon by enabling 70% more harvest output while using 25% less feed.”
This in turn is “expected to provide EBITDA margins 2x higher than conventional salmon in land-based farms.”
That’s a major advantage in a $17 billion global salmon market, and in a time when ESG compliance could become increasingly prioritized by governments as well as the agricultural market generally.
Regulatory Approval
Of course, none of this means much without the approval of regulators.
Thankfully, AquaBounty Technologies has this covered. In 2015, the U.S. Food and Drug Administration (FDA) approved AAS technology for consumption in the Unites States.
AquaBounty Technologies is a Canadian company, so regulatory compliance in its home country is essential. And indeed, in 2016 Health Canada approved AAS for consumption in that country.
With these regulatory approvals, it’s been possible for AquaBounty to ramp up its production capacity.
Thus the company successfully completed its first harvest of conventional salmon in June of 2020.
With that, AquaBounty targeted the goal of increasing the company’s monthly harvest throughout end of 2020, as well as reaching an astounding 100 metric tons per month by early 2021.
The Takeaway
Successful ESG investing means identifying businesses that not only engage in the best practices, but have strong profit potential.
AquaBounty Technologies certainly appears to check those boxes. All in all, it’s safe to say that AquaBounty is not only a pioneer in its niche, but a big fish in an very lucrative pond.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.