Arcadia Biosciences Inc (NASDAQ:RKDA) ownership structure is not so popular but nevertheless, it affects both the long-term and short-term performances of the company which is why it is important for the investors to know about it in detail.
Arcadia has an institutional ownership of 53.82% and hence can easily face volatile stock price movements in the case institutions execute block trades on the open market or even when relatively small shares are available for trading in the market. The investors of RKDA do not need to worry about such volatility as the active hedge funds do not have a significant stake in the overall trading. Apart from institutional ownership, other key ownership classes such as insider ownership, general public ownership, and private equity ownership also affect the investment profile of a company.
Experts opine that the insider ownership is more about how the shareholder’s interest aligns with that of the management. Individuals hold a minor stake in Arcadia but it is considered to be a good sign for shareholders because the directors and the executives of the company have their incentives linked directly to the performance of the company. Also, insider buying is a sigh of upbeat future expectations.
General public holds a substantial ownership of 24.14% in Arcadia which gives the retail investors enough collective power to influence the major policy decisions of the company including acquisitions of businesses, executive compensation, and appointment of directors. It means that general public ownership in Arcadia ensures that the retail investors are involved in the key decision-making of the company. The private equity firms have a stake of 21.27% which gives them the right to influence the key policy decisions of Arcadia.
RKDA Trading Insights
The California-based RKDA shares finished the trading session at $0.26 recently with the total volume of 1.36 million shares trading. It was much higher than the average of three months of 579,000 shares. Last month the stock of Arcadia advanced 21.47%. The shares of the company are currently trading about its 50-day moving average by 6.79%.