Cadiz Shares Inc. (NASDAQ: ) hit a new 52-week high, touching $4.72 amid a year marked by significant growth. According to InvestingPro data, the stock has shown remarkable momentum with an increase of 46.1% in the last six months alone. The company, known for its focus on sustainable water and agricultural resources, has seen its stock price rise 61.8% year-to-date. While this impressive rally reflects strong market interest, InvestingPro analysis shows that the stock is currently trading above its fair value. The company faces profitability challenges, with negative gross margins and projected losses for the current year. However, analysts are predicting significant sales growth, indicating potential for future improvement. Gain access to 13 additional InvestingPro tips and comprehensive financial indicators with InvestingPro subscription.
In other recent news, Cadiz Inc. he has made significant strides in his various projects. The company purchased 180 miles of steel pipe from the defunct Keystone XL pipeline for a new water delivery project, with a goal of starting construction in 2025. Cadiz also secured a letter of intent with a nonprofit investment fund and other investors for $401 million in equity to support the Mojave Groundwater Project Bank.
Cadiz also announced the sale of 7 million shares in a registered direct offering, raising approximately $23.38 million in gross proceeds. The funds are intended for the development of the company’s water supply and groundwater supply project. Analyst firm B. Riley Securities maintained a Buy rating on Cadiz shares, noting the potential for upside if the company successfully establishes a Master Limited Partnership.
The company also partnered with a nonprofit investment fund to invest $150 million to support the Mojave Groundwater Bank project. Cadiz and RIC Energy are also collaborating to establish the largest green hydrogen plant in California, using solar energy to produce green hydrogen. Cadiz’s subsidiary, ATEC Water Systems, secured three contracts worth $1.6 million, which will serve nearly 100,000 people across California, Washington and Oregon by 2025.
Finally, Cadiz has reached near-full capacity contracts for its Northern pipeline, with purchase commitments for 85% of the pipeline’s capacity. The company also named Cathryn Rivera as its new chief operating officer, who is expected to lead the implementation of Cadiz’s groundwater banking project. These are some of the recent developments of Cadiz Inc.
This article was generated with the help of AI and reviewed by an editor. See our T&C for more information.
