AppHarvest, Inc. (APPH) is an applied technology agricultural company focusing on the development of some of the largest global high-tech indoor farms for growing non-GMO crops. The company is spotted at 9th position in overall 11 Agri-product companies. BlueWeave Consulting conducted a study that revealed that the international agricultural commodities sector is expected to grow at a compound annual growth rate of 6.9% from 2021 to 2026.
APPH: Recent Developments
APPH announced on March 09, that it had been nominated for the 24th annual SXSW Innovation Awards, as one of five qualifiers in the New Economy category for its Morehead’s 60-acre high-tech indoor farm. The awards recognize the most exhilarating technology developments in the connected world. The company was one of 65 qualifiers from hundreds of applications, nominated across 13 categories.
2021 was the first year when APPH started garnering revenue. The company reported a hefty revenue of $9.05 million. The company’s per-share profit was reported to be -$1.74 with a considerable decline of 535% from the prior year. For the full fiscal year 2022, the company’s revenue and EPS expectations are high with $26.8 million in revenue and -$1.23 EPS.
Comparison with Peers
When making a comparison between APPH and its competitors, it became evident that the company performed much better in terms of its yearly percentage stock price gain (+9.07) against its peers. Other companies such as LOCL, AGRI, and LND also performed positively, while LMNR, ADM, BG, and ALCO performed negatively.
Insider Transactions and Analyst Ratings
A total of 101 million outstanding shares of the company are reported, of which the insiders possess up to 25% shares, and the larger number of the shares are owned by (43%) are possessed by certain institutional investors. Kristen Owen from the analyst firm Oppenheimer maintained the rating of the company’s stock to outperform, lowering the price target from $10.0 to $6.0.
APPH has less than one year of cash runway which pose a serious threat to the incumbent investment. Also, highly volatile shares prices for the last three months, no signs of profitability shortly, and dilution of shareholders are some of the risky factors.
The investors are optimistic that the company’s stock will perform well in the future as the per-year revenue growth estimation is 58% and for the next three years, earnings will grow by 44%. So, it is a good investment.