Edible Garden AG Incorporated EDBL shares are trading higher Wednesday after the company reported a year-over-year increase in preliminary first-quarter revenues.
The Details:
Edible Garden reported a preliminary first-quarter year-over-year increase in produce revenues of 40% and an increase in cut herb revenue of more than 200% compared to the same period last year. The company attributed the growth to its investments in equipment and infrastructure, as well as expanded retail distribution leading to a 12-fold increase in herb production.
“Following a strong year for cut herb sales in 2023, the Company is experiencing sustained strong demand for cut herbs in 2024 and our distribution network now includes many of the foremost retailers in the nation. These retailers rely on us for our high-quality, locally sourced, organic, and sustainably produced products,” commented Mr. Jim Kras, CEO of Edible Garden.
“To support our growth, in 2023, we placed a major emphasis on becoming a vertically integrated herb supplier, which included investments in equipment such as coolers to support increased production in both our Belvidere, New Jersey and Grand Rapids, Michigan facilities. As we increase our production volume and leverage our fixed costs, we expect to benefit from improved margins and economies of scale,” added Kras.
Edible Garden shares are moving on heavy trading volume and have been halted multiple times for volatility Wednesday. According to data from Benzinga Pro, more than 7 million shares have already been traded in the session, compared to the stock’s 100-day average of less than 48,000 shares.
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When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.
Shares of Edible Garden have decreased by 77.36% in the past year. An investor who bought shares of Edible Garden AG at the beginning of the year would take a loss of $0.26 per share if they sold it today. The stock has risen 57.43% over the past month, meaning an investor who bought shares on March 1 would see a capital gain of $1.51.
Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Edible Garden AG stock currently has an RSI of 11.25, indicating oversold conditions.
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EDBL Price Action: According to Benzinga Pro, Edible Garden shares are up 115.4% at $9.80 at the time of publication Wednesday.
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