RIBT Stock – Ricebran…the Next Soybean?

RiceBran Technologies (NASDAQ: RIBT) is a global leader in developing and producing healthy, natural, and nutrient dense products derived from rice and other small grains. RIBT stock has been gaining momentum as the war in Ukraine puts pressure on food supply chains. RIBT stock gained 41% this week and could continue running as most investors hear about the stock. Considering its high trading volume of 5.4 million shares – a 335% increase from its average, RIBT stock is shaping to be one of the hottest plays this week.

RIBT Stock News

Focused on providing creative solutions for food and feed applications, RIBT utilizes its technologies, facilities, and experience to convert raw rice bran into stabilized rice bran and high value derivative products. Through this, RIBT looks to capitalize on the nutritional and economic value of the so far underutilized rice bran. This food product is a dense nutrient source of protein, fats, fiber, and carbohydrates as well as vitamin E and antioxidants. In light of this, rice bran can be utilized in a number of products from health foods to animal feed.

Currently, RIBT is working on expanding the uses of rice bran to unlock its massive potential. Using its technologies, RIBT is able to increase the nutritional value and the flexibility of rice bran for more applications. Rice bran is notably underutilized in the feedstock sector compared to other feedstocks like soybean. Despite the growing popularity of soy products, 77% of global soy produced is used to feed livestock.

In this way, the company is targeting the growing potential for its products to take on the same utilization as soybean products which have recently come under criticism for their harmful effects on the environment.

With a utilization rate of only 4%, the US rice bran market would increase to $380 million if its utilization increases to 13% – equivalent to soybean’s current share of the market. With this in mind, RIBT stock could be a profitable investment if the company is able to increase its hold on this market through its range of products.

Products

The company’s main offering, RiBran is extremely versatile due to its neutral flavor. At the same time, this ingredient is rich with dietary fiber, fatty acids and protein. In light of this, RiBran can be used to produce several products like cereals, snacks, animal feed, and even beverages.

But RIBT’s flagship derivative powder – RiBalance – is a complete rice bran nutritional package derived from additional processing of the rice bran. As a good source of vitamins and amino acids, RiBalance is mainly used in producing meal replacements, nutritional bars, and cereals.

While this product is very similar to RiBran, RiBalance is a ready-to-eat product. Given that the $11.9 billion meal replacement market is expected to grow to $15.5 billion by 2026, RIBT’s unique product could takeoff in the current health foods market.

Along the same lines, RiSolubles provides a sweeter taste to powdered ready-to-drink beverages, dietary supplement processing aids, and more. For this reason, RiSolubles is used in the production of powdered ready-to-drink beverages, dietary supplement processing aids, and more. Thanks to its increased binding activity it also has applications to gluten free cooking.

The company also offers a source of natural fibers and proteins, RiFiber, which is a nutritionally rich RTE ingredient approved by the USDA for use in meat and poultry applications. The company sees its applications ranging from sports nutrition powders, bars, snacks to Gluten-free baking and dietary supplements.

Last but not least is a product mainly designed as a feed ingredient for the animal nutrition markets – NutraCea, a highly palatable form of additional calories and protein. Designed for building and maintaining muscle as well as improving skin and coat conditions, NutraCea is intended for performance horses, livestock, and companion animals. The vitamins and amino acids found in the stabilized rice bran are used in producing dog food which the company hopes to capitalize on as well.

All together ricebran presents a $2 billion market which RIBT could capitalize on through its range of products.

Other Grains

In the same vein, RIBT anticipates using its technology to capitalize on the oat meal market with added value offerings. Considering the growing demand for oat milk, RIBT points to the possibility for oat and barley derivatives, such as beta-glucans, for human food and
supplement applications as well as ground oats as a starter material for the oat milk market.

The company highlighted that while corn, wheat and soy coproduct markets are dominated by massive companies, the market for small and ancient grains is made up of smaller players and RIBT has the opportunity to position itself at the forefront.

Management

With the company looking to expand its business, RIBT added Jean Heggie and Will Black to its BOD. As the founder of a food industry consultancy – Heggie & Associates, LLC, Heggie has over 35 years of experience in food ingredient marketing. Heggie has previously worked as a Global Marketing Lead for DuPont Nutrition & Biosciences’ Protein Solutions business unit where she led the development of the company’s marketing plan for its plant protein portfolio. 

In addition, Black is considered to be a global health and nutrition guru with 35 years of experience. During his career, Black served as Senior Vice President of Sales and Marketing at ChromaDex, COO at Natreon, as well as Global Head of Marketing of Human Nutrition and Health at DSM Nutritional Products. Moreover, Black held senior roles at Dupont Nutrition and Health in sales, marketing and business development for the Solae business unit. At the same time, Black is the founder and CEO of Single Track Consulting, LLC which is focused on global advisory for the nutrition and health sectors. Considering the vast experience of both Heggie and Black, RIBT is well-positioned for further growth as a value-added ingredient provider.

Insider Activity

Although RIBT’s business has the potential to grow further as more people realize the potential of rice bran, the company’s major shareholder – Continental Grain Co. – has filed a notice with the SEC to state its intention to sell up to 3.8 million shares of RIBT stock. So far, CGC sold over 1.5 million shares since March.

Despite this insider selling, several institutions have been adding shares of RIBT stock since April. This institutional buying is highlighted by Arnhold LLC which increased its position by 23% on May 10th. While the institutional buying is mixed with insider selling, this could be a sign that news is on the way for RIBT.

RIBT Stock Financials

According to its Q1 financials, RIBT reported $10.5 million in revenues representing a 23% increase from the same year-ago period. However, despite this increase the company reported a net loss of $1.5 million. RIBT also reported $31.3 million in assets and an increase in its liabilities from $12.8 million in Q1 2021 to $14.1 million. As the company is able to realize increasing revenues from its business, the company has the chance to report a net profit by the end of year.

In Q1 and Q2 of 2021, the company achieved a gross profit after achieving $8.6 and $7.6 million in those respective quarters. The company notes that its financial profile has been improving after exiting 2021 with a positive revenue trend across all businesses and progressively declining gross losses.

Media Sentiment

@MrMikeInvesting highlights the potential of RIBT stock to capture market share

“Ceo of FinTwit” and founder of Atlas Trading @PJ_Matlock has been one of main triggers for RIBT’s recent popularity. @PJ_Matlock is anticipating a 60 cent breakout soon.

Technical Analysis

RIBT stock chart

RIBT stock is currently trading at $.5401 and shows a main support at .5108 and .4764. It recently tested its resistance at .5849 and with its next strong resistance near .6403. Considering RIBT stock’s 41% increase this week, accumulation has shown some ups and downs but is still climbing. The RSI is currently at 54 and MACD just became bearish.

RIBT stock chart

With the RSI and MACD regulating, there’s room for RIBT stock to continue its run. With investors expecting a .60 breakout soon, the stock could retest its resistance. Bullish investors could take a starter position while the RSI regulates and average up. With an OS of 51.8 million OS and a low float of 50.2 million, the stock could move easily with momentum.

RIBT Stock Forecast

As the company continues to develop and produce rice bran derived products, RIBT could grow as a leader in this underutilized sector. With the company’s wide range of products, RIBT has the opportunity to position itself in this $2 billion market.

Given the recent stresses on supply chains, RIBT’s 100% grown and processed in the US products are a bullish sign. On top of this, the demand for non-GMO and gluten-free products are creating a market which RIBT is well positioned to capitalize on with its portfolio of products.

As the company continues to strengthen its balance sheet after showing notable growth over the last year, RIBT stock also presents significant long-term potential. However, in the short-term RIBT’s recent run is fueled by new momentum which could die out. With this in mind, investors should take profits on the way up.

If you have questions about RIBT stock and where it could be heading next feel free to reach out to us in our free alerts room!

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