Arcadia Stock Set to Scale Nasdaq on New Cannabis Unit

RKDA has doubled in the last two months

The cannabis industry continues to infiltrate other sectors, and next up appears to be biotechs. The shares of Arcadia Biosciences Inc (NASDAQ:RKDA) are up a whopping 52.8% in electronic trading, after the company announced a new cannabis-focused business unit. Arcadia Specialty Genomics (ASG) will focus on the hemp market, with an eye toward "improved plant quality, productivity, consistency and resilience," per a company release.

Should today's bullish premarket price action carry through, this would send Arcadia stock to the top of the Nasdaq. Since bottoming at a record intraday low of $2.65 on Dec. 27, RKDA has more than doubled in value, closing last night at $5.40. But today's breakout has the shares on track to topple their 200-day moving average for the first time in June.

Today's news could put Arcadia stock on analysts' radar. Only one analyst is currently in coverage of RKDA, doling out a "buy" rating and $20 price target. If more bull notes come through, it could add wind to the equity's sails.

A short-squeeze rally could also play out if RKDA topples resistance in today's trading. Short interest rose by 19% in the most recent reporting period to 335,623 shares. This represents a healthy 10.5% of RKDA's total available float, and 2.4 times the average daily trading volume.